Short Ideas Today, July 23, 2008

Ford(F) will report its earning tomorrow, prior to market open. This morning, The Fly On The Wall wrote:

Ford's (F) new Flex vehicle was scheduled to add a third production shift in Oakville, Ontario, but that has been cancelled and will result in the loss of 500 jobs. Sales of the Flex, a seven passenger vehicle highlighted by fuel efficiency, have not been robust because of the weak economy.

Ford (F) will seek to "meet or beat the competition in fuel economy," Ford's president of the Americas, Mark Fields, said yesterday. U.S. auto sales have not improved this month compared with June, Fields added

Ford's (F) June US Auto Sales fell 19.1% from last year vs. the 17.8% consensus decline. Car sales only fell 1%, but truck sales plummeted. Total truck sales were down 27%. The profit-driving F-Series saw sales tank 33%. But without adjustments, overall auto sales were down 28%, SUV sales declined 40% and trucks/vans sale declined 31%.

According to technical analysis, Ford's stock prices have been up since early this month and now it can be considered overbought, see the chart below:

The green arrows are forming a parabolic. It ussually will be followed by downward move.

While General Motors(GM), A Citi's Analist thinks that General Motors’ (GM-2S) liquidity is likely to tighten over the next year, increasing the need to raise cash in difficult capital market conditions. GM is also overbought. Bloomberg wrote today, that GM Falls Further Behind Toyota in Global Sales Race.

Due to overbought, the other short ideas are Suntrust Banks (STI), JP. Morgan Chase (JPM), Deutsch Banks AG (DB), Bank of America(BAC) and HSBC(HBC).

Related Posts :

1. WaMu Has $3.3 Billion Quarterly Loss on Rising Delinquencies
2. BlackRock(BLK) is Ready to Fill Gap
3. Short Suntrust Bank, Inc. (STI)
4. Bridgewater warns Bank losses from credit crisis may run to $1,600bn
5. Banks and Brokers at Greatest Risk of Default
6. The Big Three Automakers May be Downgraded as Impact of Global Credit Crisis and Recession

Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.