[Shay]

I thought yesterday's plunge to $2.92 was huge. Today it dropped to $2.10



Ford Stock Hits Historic Low Part 2: $2.10 Ford Stock Hits Historic Low Part 2: $2.10

10-08-08: The old question comes to mind of “can it get any worse?” We asked that yesterday and the answer was “yes”. Today history was made in that Ford stock (F) dropped to an all time inflation adjusted low of $2.10 per share. Before the end of trading today the shares bounced back to a close of $2.66.

We reported yesterday that it had dropped to the lowest point since 1981, but today’s dip represents the lowest price we can find on record for the company’s stocks. The further devaluation was in part due to the DOW plunging another 200 points today.

Downward pressure was compounded as analysts at CitiGroup changed the ratings today on the stock from “hold” to “sell”, despite the lowest price in history. Ratings such as these are followed by many of the lemmings on Wall Street, so the sell off continued in the face of loss.

CitiGroup analyst Itay Michaeli said in an interview, ""If conditions continue to worsen as we saw in late September, U.S. automakers might be forced to consider pursuing either drastic spending cuts and/or broader workout scenarios sooner than previously contemplated," Michaeli said in a note to investors. "As we have previously detailed, distressed restructuring steps could include sizable debt-for-equity exchanges, new labor deals and/or some form of government assistance."

Short story is that the outlook for the Big three has become more bleak as the devastated credit markets have taken the lion share of buyers out of the showroom for the near term. Scary stuff as Ford is this week readying the launch of its new 2009 F-150 trucks - likely to hit showrooms with a thud no matter how good they may be.