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Stock Focus

Recent Developments
SALES
Ford broke through the double-top resistance $14.54 & $14.57 and soared higher to hit $15.20
soon afterwards, backed by strong sales report for the period of October, impact from FOMC
stimulus and also the positive mood set by the Republicans win in the election.
Sales for Ford, Lincoln and Mercury totaled 157,935 units, a 19% jump from a year ago sales
level.
Year-to-date, sales went up 21% to 1.6 million, growing twice the industry average.
Car sales went up 20%, utilities increased 9% and trucks soared 25% from October 2009’s sales.
F-Series sales amounted to 49,041 units, 24% higher than last year, while YTD sales reached
434,920 units.
Fiesta recorded its best sales month ever (3,846 units), Fusion also set record sales in October
(17,362 units or up 29%), while Ford Focus sales were up 23% and Mustang sales increased 11%.

Sales by Type (% Chg) Sales by Brand (October)

30.0% 200000
25.0%
150000
20.0%
15.0% 100000
10.0%
50000
5.0%
0.0% 0
Cars Utilities Trucks Total Vehicles Ford Lincoln Mercury Total Vehicles

YoY % Chg YTD % Chg 2010 2009

Sales by Type (October) Sales by Brand (% Chg)

200000 25.0%

20.0%
150000
15.0%
100000
10.0%
50000
5.0%

0 0.0%
Cars Utilities Trucks Total Vehicles Ford Lincoln Mercury Total Vehicles

2010 2009 YoY % Chg YTD % Chg

Sales by Brand (YTD) Sales by Type (YTD)

2000000 2000000

1500000 1500000

1000000 1000000

500000 500000

0 0
Ford Lincoln Mercury Total Vehicles Cars Utilities Trucks Total Vehicles

2010 2009 2010 2009

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EARNINGS

Quarterly Earnings
0.700
0.600
0.500
0.400
EPS ($)

0.300
0.200
0.100
0.000
-0.100
-0.200
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Estimate -0.117 0.260 0.312 0.404 0.377
Actual 0.260 0.430 0.460 0.680 0.480

Ford beat the market consensus on its Q3 earnings, setting up the foundation of its current rally
past the $14.54/57 double-top resistance.

STOCK PERFORMANCE

Ford Motor’s stock performance showed consistent performance

throughout the month of October. After soaring 11.42% in the first
week of October, the automaker delivered approximately 1% gains
for each remaining week, bringing the total gains for October to
15.44%, gains of 51.95% from the start of 2010, and an impressive
104.03% gains since a year ago.

OTHER NEWS
Throughout October, Deutsche Bank had reduced the carmakers’ rating from HOLD to BUY with
price target set at $19.50; UBS set Ford at “BUY” with $19.50 as price target. Finally, Barclays Plc. put
Barclays at OVERWEIGHT with price target at 17.00.

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Technical View
Supports at $14.54/57,
$14.04/09, $13.92, $13.18;
Resistances at $15.20,
$15.47, $16.48, $17.34;
Target price at $15.47, with
next upside potential at
$16.48;
Daily MACD is still bullish, as
well as the weekly MACD;
Exponential moving
averages still pointing at
strength;
Risk at a bump on the upper
price channel at $15.47
which could trigger a
correction towards $14.54/57 again and further down to the lower $14.00s area;
Strong fundamentals and bullish chart positions pointing at more gains, but watch for pullback
after extending gains recently;
While above $12.45, keep collecting the stock, anticipating that the price target at $16.48 is to
be tested in the coming sessions;
Fundamental landscape suggests caution as General Motors would soon engaged into IPO again
in mid-November and could chip away some capital out of Ford to GM as investors may do some
portfolio reallocation.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any securities. This report has been
prepared based on sources believed to be reliable, but there is no assurance or guarantee regarding its completeness & and accuracy. The
author accepts no responsibility or liability arising from any use of the report.

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