Thursday, February 9, 2012

Is there one big reason why GM shares are way higher than Ford?

Also, would it be a somewhat safe move to make a long term investment on Ford at $17 a share?Is there one big reason why GM shares are way higher than Ford?Everybody's big on GM right now. Goldman Sachs and others are hyping this alot.



From Motley Fool:



Like I said, while I note these concerns, they don't worry me enough to scare me away from the stock. To me, GM looks cheap at less than nine times 2011's earnings. Maybe even cheap enough to own.Is there one big reason why GM shares are way higher than Ford?Share price alone is no way to compare stocks. You need to look at normalized data, such as EPS and P/E ratio.Is there one big reason why GM shares are way higher than Ford?The stock price is not a reflection for comparison between companies. The value is multiplying the outstanding shares x's the stock price. At that point you get the market's perceived value of the company.



I like %26amp; own Ford. I hold no GM shares. But... you have no clue who I am or what my qualifications are... to act on what I do (or say I do)..... would be incredibly stupid.Is there one big reason why GM shares are way higher than Ford?
Ford has a larger market cap than GM. Don't confuse share price with size. Three ten dollar bills are worth more than one twenty dollar bill.
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