Ford Motor Company (NYSE:F) Smart Resign will Save Millions

Ford Motor Company (NYSE:F) Smart Resign will Save Millions

Ford Motor Company (NYSE:F) Smart Resign will Save Millions

Ford is in the throes of an $11 billion restructuring, which will cost 7,000 white-collar workers their jobs this year. The US auto giant believes the “smart redesign” will save billions, but the Dearborn-based company’s stock continues to struggle.

Reportedly, the company is vastly downsizing its managerial workforce. Of the company’s more than 190,000 employees, roughly 70,000 serve in salaried positions. Collectively, Ford’s savings will total close to $600 million per year.

According to the Detroit Free Press, who obtained a memo from Ford CEO Jim Hackett this morning, the company has been advised that a 1:8 ratio of managers and employees is ideal. Hackett says in a memo that the “Smart Redesign” involves a massive reduction in bureaucracy:

“Our average span of control for managers will have increased from five direct reports to more than seven, reducing management bureaucracy by one-third.”

An anonymous employee said of the move:

“They indicate that our optimal structure would be to have one manager with eight people working under them. So people that are well connected have been scrambling to rearrange heads, create new positions in order to appear like they have the ‘right’ number of people working for them.”

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 10.86.

The projected lower bound is: 9.77.

The projected closing price is: 10.32.

Candlesticks

During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 30 white candles and 18 black candles for a net of 12 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.8334. This is not an overbought or oversold reading. The last signal was a sell 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.25. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 8 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -40. This is not a topping or bottoming area. The last signal was a sell 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.

Rex Takasugi – TD Profile

FORD MOTOR CO closed down -0.010 at 10.280. Volume was 37% below average (neutral) and Bollinger Bands were 14% wider than normal.

Open High Low Close Volume___
10.280 10.300 10.205 10.280 7,447,234

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 10.30 9.45 9.12
Volatility: 26 36 38
Volume: 9,393,348 11,888,805 12,339,554

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FORD MOTOR CO is currently 12.7% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of F.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on F.N and have had this outlook for the last 37 periods.

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