Friday, April 04, 2008

How Do I Invest in Ford, Let Me Count the Ways

The Ford Motor (F) stock should certainly be considered a speculation, with the U.S. economy in a probable recession and the price of a barrel of gas above $100. The company just announced that they are reducing costs by merging their global vehicle development operations and purchasing operations. Although their revenues were up 9.5% for the latest quarter, the diluted earnings per share were a negative $1.38 per share.

However, there are other ways of investing in Ford besides the Ford common stock. There is the Ford Motor Capital Trust II 6.50% Cumulative Convertible Trust Preferred Securities due January 15, 2032 (F-PS). These securities trade on the New York Stock Exchange and provides quarterly payments.

There are also the CorTS Trust II Ford Notes 8.00% Corporate Backed Trust Security Certificates (KVU). CorTS stands for Corporate-backed Trust Securities. These pay $1 per share semi-annually.

In addition, there are the Certificate of Trust Ford Debentures Corporate Backed Trust Securities 7.40% (KSK). These securities pay semi-annually, similar to a bond.

Ford Motor Company 7.5% Notes (F-PA). These securities pay quarterly, similar to a preferred stock.

There is also the long name Lehman 8% Corporate Backed Trust Certificate Ford Motor Company Note-Backed Series 2003-6, Class A-1 (XVF) security. This pays $1 per share semi-annually.

A way of investing in the Ford Credit division is Ford Motor Credit Co. LLC 7.6% notes due March 1, 2032 (FCJ). This division provides automobile financing through auto dealers throughout the world.

Another series of Ford Credit Notes is the Ford Motor Credit 7.375% Notes (FCZ), due October 15, 2031. As the previous notes, these also trade on the New York Stock Exchange.

Please note: the above stock symbols are in the Yahoo Finance format; brokerage firms may use a different format (e.g. F-PS versus F-S).

Author owns F.

By Fred Fuld at

No comments: