Here’s an example of  “Understanding the STORY”  that we teach in our Stock Market Companion – Stock Investing Course.

Using our S.I.M.P.L.E. Stock Investing method, you immediately learn the importance of understanding the STORY behind a company before considering any investment and HOW to find out the story on their own. The story involves understanding the people and / or product(s) that are acting as a catalyst for significant change at a company.  Significant, positive change at companies that are publicly traded often lead to excellent stock investments, when the other aspects of the S.I.M.P.L.E. Stock Investing Method that our students learn, match up for the company.

On September 26th 2020  – I mentioned that I was again interested in Ford Motor Co.  for a possible stock investment.  The story for me about Ford Motor Co. was coming together from occasional articles I had read this year about Ford’s approx. $10 billion investment in vehicle technology in their efforts to develop electric and self-driving vehicles.  Additionally, Ford’s bold decision to only offer the Ford Mustang as an electric vehicle, and Ford’s CEO being an experienced company “rebuilder” were pieces of the story about Ford that were starting to strongly line up for me.

In my mind, part of the story at Ford is my thinking that Tesla has redefined the automotive market place and set a whole new standard and focus for automotive companies.  The “eye-popping” Tesla share price development has also confirmed that investors are very interested in participating in real innovation in the automotive market.  In my mind, there is lots of room for car makers like Ford to successfully adopt and adapt what Tesla has done.

With the story now in place in my S.I.M.P.L.E. analysis, I begin looking for data that back-up my story.  Here’s a clear example of Ford sales data and stock price improvements, coming together to back up my story –

On October 2nd, The Detroit Free Press reported that Ford’s 3rd quarter F-Series and Ranger truck sales were the best in 15 years for the company!  This is happening during the COVID-19 situation, when other automotive manufacturers were not doing so well.  https://www.freep.com/story/money/cars/ford/2020/10/02/ford-sales-f-series-ranger-third-quarter/5892714002/

Following this public announcement, the share price of Ford Motor Co. stock received immediate buying interest and has turned strongly higher.  The confirmation day occurred with the breakout in share price above the approximate $7.50 price resistance level.

The next week, on October 28th, Ford Motor Co. announced their 3rd quarter earnings and expectations for upcoming earnings.   Our S.I.M.P.L.E. Stock Investing Method teaches you how to find, understand, and combine fundamentals (earnings growth, debt, equity…) with technical analysis (share price movement, volume, support and resistance and patterns that indicate accumulation or distribution of large shareholders).

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