Ford Motor Co (Ticker: F) stock shifted higher today.  Stock Market Companion subscribers have enjoyed quite a bit of growth in Ford stock when we announced our purchase last November, at $8.01/share.  Today, the stock crossed above $17/share.

In anticipation of further investment gains due to market share gains at Ford, we held onto our shares from November 2009 until April 29, 2010. We sold after the news from the Ford earnings conference-call caused some institutional sellers to take their profits.  We did the same and booked a cumulative +77% on our investment.

Click here for a picture of how our investment grew.

We announced our next investment in Ford on October 21st after Ford’s most recent earnings announcement showed further improvements.  We added to our shares on November 3rd, but as the overall market started to weaken, concerns about debt in Ireland and Portugal began arising in Europe again, and the U.S. dollar surged higher – we took our +11.8% (approx.) profits on November 10th.

Some of our subscribers are still holding onto the Ford Motor Co. (F) stock and we want to provide these ideas concerning Ford’s move higher today and what may lie on the road ahead –

Here’s what’s causing ignition with Ford stock today –

1. Retail sales nation-wide were reported today, and they were BETTER than expected. Car and truck sales helped significantly with these results.

2. Ford’s heavy duty truck sales are accelerating with increases in market share.  Ford also sold more standard F-Series Pick-Ups than GM, with Ford increasing market share here too!  See this Detroit Free-Press Article for details.

3. General Motor’s IPO (initial public offering) may take place this week. This is bringing heavy national and international attention to automotive stocks.  Ford is benefiting at the moment from this.

4. GM’s IPO is going UP in price, and it hasn’t yet reached the open market.Initially the share price for the offering was anticipated at$26-$29/share. Now there is a possibility that the shares may price out at $31-$33/share. That’s a big difference and is helping Ford’s stock today.

At the Stock Market Companion we believe that if the GM IPO performs well, it may draw more investment into automotive stocks like Ford, BUT it may also be that institutional investors may lighten up on their Ford holdings and be targeting a run at GM.  We simply do not know.

A prudent strategy in any case for anyone holding Ford shares from our multiple buy-points identified over the last month,  is to place a stop at around $16.50/share (stop market, good ’til cancelled = 30 days), which would lock in a size able profit under normal market conditions.  If there is a strong move higher in the Ford stock, a prudent investor can sell into parabolic strength and cancel the stop.

With the Ford stock up so strongly over the last few months, we do not view a new entry here as prudent.  For those with a higher risk tolerance than we have, it may be possible to enjoy a further surge in Ford stock related to the GM IPO  by entering here, but placing a stop at $16.50/share as mentioned above, just in case strong profit taking emerges.  As mentioned above, there is a strong move higher in the Ford stock, a prudent investor can sell into parabolic strength and cancel the stop.

Although we are not drivers in this leg of the race, we are glad at the Stock Market Companion to be the pit-crew!  (Please see our disclaimer, below)

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Please remember – at the Stock Market Companion we do not and cannot give individual investment advice. According to the State of Washington RCW21.20.005 the Stock Market Companion is not a Registered Financial Advisor and we do not render any advice on the basis of the specific investment situation of a particular individual. This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should our Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  Please seek the counsel of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.