Why Is Ford's Stock So Cheap?

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The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and technology and media editor/analyst Andrew Tonner discuss topics across the investing world.

In today's edition, Brendan and Andrew discuss one of the questions baffling a lot of investors: Why is Ford's stock so cheap? Brendan goes through some of the possible reasons one by one, and gives his opinion as to whether they are legitimate or not. Some of them include: Ford's $15.4 billion in pension obligations; loss-making European operations; its (until lately) slow push into high-growth markets like China; and its overall cyclicality. Find out if any of these reasons carry water, and whether there are legitimate reasons for Ford trading below seven times forward earnings.

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At the time this article was published Andrew Tonner has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford.Motley Fool newsletter services recommendFord, General Motors Company, and Tesla Motors. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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