Action Update - Ford Motor Company

Financial Model

• Recommendation: Trade - Calls

• Potential Annualized Return (5-yr. projection): 7%

• Valuation (2-yr. projection): EV/Sales 0.9 times; OCF/Share 2.5 times

• Potential Annualized Growth Drivers (5-yr. projection): Revenue 0%; OCF/Share 4%

• Current Dividend Yield: 8.4%

Actionable Considerations

• Long-term F investors should consider whether continuing to hold F is the best strategy as it may be better to trade the stock.

  • If all goes well over the mid-term, investors could potentially witness double-digit gains when factoring for the dividend yield.

• Investors with no exposure to F may consider initiating a position, but should be prepared for volatility.

• Short-term trading strategies are best suited for investors.

  • It is not recommended to short F now as it is at a low point. Investors will want to wait for another peak opportunity.

  • The optimal strategy is to purchase the stock directly and/or consider purchasing calls with the objective of trading to realize gains with timing depending on risk tolerance.

Disclosure: The Investor Cornerstone+ portfolio does not own F nor is there any desire or intent to take any action to buy the stock directly, to purchase calls, or to purchase puts for the foreseeable future.