Warming up to Ford

Ford Motor (F) shares are starting 2012 well, already up 8.8% and rising on steady volume.  However the stock is way down since making its 2008 comeback, down 61% from its 12 month high.  This great American story is trading cheap, with a P/E of 7 and under $12 a share.

Over the past 12 months Ford Motor Co (f) shares have traded between $9.05 and its 52-week high of $18.97.  Ford is trading today at $11.74 which is 23% from its 12 month low.  Ford pays a 5 cent dividend quarterly which implies a 1.7% annual yield.  Mastery likes how shares of Ford have been on a steady increase since the start of the year and we believe the analysts are due to take notice. 

Ford has been expanding into India, its part of the reason Trefis at Forbes.com expects shares to reach $14 in the next 12 months (banking a 20% return).  There's plenty to be excited about Ford Motor, even if its rockstar CEO Alan Mulally leaves he will setup shop for the company to run successfully for years to come. 

Ford's stock has been coming back since last week after the company reported sales up 17% in 2011.  Last month Ford beat Dec sales estimates of 7.7%, the company clocked 10% growth.  The icing on the cake was Ford beat Japanese auto makers sales in China. Ford sold 519,000 vehicles in China, a gain of 7% year-over-year.

MASTERY Bottom line:
Ford shares are way off their high and back of their lows. 

The company's share price is set to make a comeback in 2012 with its growth in revenue to fuel the rally.

We like the stock under $12, the question is how long will it stay that low?