Transcript H&R Block, Inc. (HRB) Align Technology Inc. (ALGN)

Zack Perconti
Ford Motor Company:
Recommendation
Buy: Limit at $11.80
 Sell: Stop at $13, Limit at $18

Ford Motor Company:
Background
Major manufacturer of automotive
vehicles.
 Founded in 1903 by Henry Ford
 Approximately 200,000 employees
 90 plants worldwide
 Brands include Ford, Lincoln, Mercury,
and Volvo, among others.
 Headquartered in Dearborn, Michigan

Ford Motor Company : What They
Do
World’s 4th largest producer of Automotive
vehicles, including Cars, Trucks, and SUVs
 Leader in the field of hybrid technology, and is
in the development process of several hybrid
vehicles
 Most of you have heard of Ford and what they
do, so moving right along…

Ford Motor Company : Basic
Numbers
Current Price:
 P/E Ratio:
 Beta:
 Dividend/ Yield:
 EPS:
 52-Week Low:
 52-Week High:
 Market Cap:
 Institutional Ownership:

Taken from http://www.google.com/finance?q=hrb as of 1/13/10
$11.76
------2.66
-------$2.11
$1.50
$12.14
$3.31B
46%
Ford Motor Company : 1 Month
Ford Motor Company : 3 Months
Ford Motor Company : 6 Months
Ford Motor Company vs. S&P
500: 1 Month
Ford Motor Company vs. S&P
500: 6 Month
Ford Motor Company vs. Competitors, 1 Month
(F vs NSANY, VLKAY, GM, TM, HMC)
Note: GM has not traded
stock since its
bankruptcy filing and
subsequent
reorganization
Ford Motor Company vs. Competitors, 1 Year
(F vs NSANY, VLKAY, GM, TM, HMC )
Note: GM has not traded
stock since its
bankruptcy filing and
subsequent
reorganization
Ford Motor Company: Recent
News



Recently downgraded from Buy to Hold by Standpoint
Research, citing fact that Ford’s gains have slowed
down recently, and saying that they would reinstate the
“Buy” rating if the price returned to $9
HOWEVER, Standpoint still projected a target price of
$18-$24 by the end of 2011-2012, with analysts
generally agreeing that they are on track to meet that
goal.
Ironically, this slight decline in the stock’s volatility
caused Bank of America and Merril-Lynch analysts to
call the stock “distinguished” amongst the rest of the
market.
Ford Motor Company: Recent
News



Recently downgraded from Buy to Hold by Standpoint
Research, citing fact that Ford’s gains have slowed
down recently, and saying that they would reinstate the
“Buy” rating if the price returned to $9
HOWEVER, Standpoint still projected a target price of
$18-$24 by the end of 2011-2012, with analysts
generally agreeing that they are on track to meet that
goal.
Ironically, this slight decline in the stock’s volatility
caused Bank of America and Merril-Lynch analysts to
call the stock “distinguished” amongst the rest of the
market.
Ford Motor Company : Reasons
to Buy

Large, respected company
 #7 overall on Fortune 500 list of American-
based companies, based on global
revenues of over $146.3 billion
 4th largest auto maker in the world, 3rd in US
auto sales, occasionally fluctuating to 2nd or
even 1st

Stock price will continue to rise until it
reaches pre-crash levels
 Just recently set 52-week high, compared to
low of $1.50 during auto crisis.
Ford Motor Company : Reasons
to Buy

Worldwide markets
 Has over 90 plants worldwide, and operates in 6 of
the 7 continents
 4th in worldwide auto sales
 Commands a large share of the American and
European markets.

2010 North American International Auto Show
 Ford Focus named “Most significant” vehicle at show
by Autoweek magazine.
 Ford received both the North American Car and
North American Truck of the Year awards for the
2010 Ford Fusion Hybrid and 2010 Ford Transit
Connect, respectively.
Ford Motor Company : Reasons
to Buy

Quality of Product vs. Competitors


Ford Fusion Hybrid won Motor Trend’s Car of the Year award, NAIAS Car of
the Year award, amongst others
Ford remained most stable of American auto companies during
auto crisis in 2008
 Took government loan to shore up emergency cash reserves, has since
paid back loan in full
 Only one of the three companies (Ford, Chrysler, and GM) not to file for
chapter 11 bankruptcy protection
After the crisis, Ford underwent a reorganization that “trimmed
much of the fat” from the company, shedding unprofitable
brands through sale or closure, leaving a core company that is
highly profitable and has room to grow.
 Ford’s large gains make it an excellent stock for a long-term
investment; we may want to consider dropping the limit sale
entirely and holding the stock in our portfolio for an extended
period of time.

Ford Motor Company: SRI
Ford has shown a commitment towards developing more
environmentally-friendly, by researching and developing
Hybrid vehicles with better than the industry standard
mileage ratings.
 In 2008, sales of Ford Hybrid cars and SUVs increased by
73%
 One of the most popular vehicles, the Ford Fusion Hybrid,
gets an estimated 41 mpg in the city and 36 mpg on the
highway, topping its new main competitor, the Toyota
Camry hybrid, by 8 mpg and 2 mpg, respectively.
 Ford Escape SUV hybrids have been favored by
government rescue services due to their durability and
fuel efficiency (34 mpg city, 31 mpg highway), and have
been provided by Ford at a reduced or, in at least one
instance (LA county lifeguards, division of LA county fire
department) , no cost.

Ford Motor Company :
Competition

Nissan Motors (NSANY)
 Primarily Asian Markets
 Relatively stable stock - has remained in the same price
range for an extended period of time
 How many people do you know that drive a Nissan?
Really?

Volkswagen (VLKAY)
 Initially sponsored by Nazi’s
 Lacks the large American and Asian markets that Ford
has.

General Motors Company (They don’t get a ticker symbol)
 Hasn’t even traded stock since Chapter 11 bankruptcy
filing and subsequent reorganization last year!
Ford Motor Company :
Competition Continued

Honda Motor Company LTD (HMC)
 Primarily Asian markets
 Consistently outsold by Ford worldwide
 They’ve got a weird name. (Honda?)

Toyota Motor Corporation (TM)
 Occasionally outsold by Ford in US
 At $90.93 as of 1/14/10, the price is considered inflated
by some analysts, and is also way out of our price
range…
 Does not have the European market share commanded
by Ford.
 They make the Prius…that car is way too political these
days
 Their ticker symbol is the same as the trade mark sign
™, and therefore makes for confusing situations. (TM™)
Citations
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http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-ford-focusnamed-26lsquomost-31856
http://naias.mediaroom.com/index.php?s=43&item=528
www.naias.com
http://www.marketwatch.com/story/waning-volatility-favors-stocks-gap-ford-analyst-2010-0114?reflink=MW_news_stmp
www.ford.com
http://www.google.com/finance?q=hrb
www.aol.com/finance/
www.ford.com