After this weekend's editorial about the automotive industry's analysts, which are eager to predict an uptick in auto sales, it looks like another investing site has a comment or two to make about the industry.
A writer questions simply "is the (automotive) industry on it's way towards a rebound?"
Citing Ford's December announcement that said it will reinstate a five cent per share dividend, this pundit believes that it could be a symbolic gesture that Ford is seeing greener pastures ahead. In my eyes, it looks like Ford may be trying to recover some ground lost since it's stock popped at around $18 - 19 bucks this time last year. Now it's trading at approximately $10.75 per share.
There's no question that 2012 will be an important year for the auto industry as it continues to limp along, but as I mentioned in this past weekend's piece, I think it's still an uphill battle and will remain so.
It might be a whole lot of hype over something relatively insignificant, but investors who follow the auto industry are pointing to a recent announcement from Ford Motor Co. as a sign that the auto industry is recovering from what once appeared to be the beginning of the end for Detroit....
...On Dec. 8, 2011, Ford announced that after five years of paying no dividend, they were reinstating a dividend of 5 cents per share. While hardly a hefty payday for investors, it may signal that Ford, the one company of the big three automakers who didn't receive a government bailout, may finally be seeing bluer skies on the horizon...
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