Here is a question from a reader;

What are your projections on Ford stock now?

There is no doubt about it, Ford will continue to have another rough year or two.

The key point however is Ford must begin making products that consumers want to buy. Right now, their product line is very slim, and the only real marketable products they have are trucks and SUV's. If gas prices continue to remain high, these products will not sell.

Buying Ford at these levels (or lower) is a leap of faith. That faith being that they will transform the company into a Toyota or Honda. Frankly, I don't think they have a choice. If they don't, they will go bankrupt.

Yesterday, I heard that GM & F were allocating $720 million toward the development of front wheel drive vehicles.

This is a big step toward transforming the companies into true competitors of Toyota and Honda. If they don't cut corners, or lets their arrogance get in the way of what they must do, they will regain much of what has been lost. Arrogance has gotten both companies in the shape they are now. Maybe now they have been humbled enough to make some real progress.

If they truly do what they need to do to become real competitors to Toyota and Honda, owners the stock will make a lot of money. Personally, I don't think they will back peddle like they have done in the past.