tex2670

This is EXACTLY why share price isn't nearly as important. 100 shares at $18 is exactly the same as 200 shares at $9 after a stock split.This is why the number of shares outstanding and market cap are much much more important.

Anyone buying shares of stock based on price just so they can "buy more" should not be in the market at all.

Toys4RJill

You added in stock spilt. So let’s say Toyota stock split as well. Compare Ford vs Toyota. Looking at Toyota’s current stock price will tell you that it is more than likely a better regarded company than Ford. I did say but either. That is for you or whomever to decide. I personally would rather have Toyota stock than Ford. But I would not buy either today.

mmarshall

Agreed....all a split does is divide the same total value up into two equal parts.

Yes and no. "Buy low, sell high" (if possible) is the classic formula for stocks.

Sulu

I would call this the author's dream or what-if speculation but definitely not a rumour.

Unlike the FCA-Renault merger talks, which are now verified news, the author of this article does not mention once that anybody else has said that executives at GM and Ford are talking about merging.

This is no rumour; it is merely a speculation.

JDR76

Thanks for your response and for a post that isn't about Toyota stock vs Ford stock...

tex2670

I added in stock split to show that stock price can be meaningless.

But--you'd rather have Toyota than Ford because of what you know about the company, its products and the marketplace. Not because of the stock price. Ford could do a 20-for-1 reverse stock split, and the stock price would be higher than Toyota's. But that doesn't change any of the other information, and you'd still rather have Toyota stock.

If you have $5,000 to invest, it's still $5,000, no matter how many shares are purchased.

tex2670

No and no.

A $9 stock can go down and a $1000 stock can go up. Buy low/sell high doesn't mean pick stocks by their trading price.

Toys4RJill

Yes. But that stock price is usually reflective of a better, well run company. In contrast to Tesla, their stock price IMO is reflective of the what could become if they could over take off properly, if Tesla takes off, at least a $1000 stock. IMO

Ford stock, likely going nowhere, but you never know.

All of my comments in this thread are strictly related to Toyota and Ford just based on current stock prices, I called the Ford stock pathetic. I did comment on Tesla however I did not bring it up. The whole argument of stocks and how to determine what to look for is I am not interested in discussing, its for a different thread.

Who said otherwise?

mmarshall

Yes, agreed...but that wasn't quite the context of my reply. Jill was complaining that the $9.71 closing price for Ford the other day (it closed at $9.52 today, BTW) was pathetic. I only pointed out that cheap shares are often a good buying opportunity, especially if the company is in no immediate danger of bankruptcy. But, yes, one can indeed, in some cases, make money even with high-priced stocks, if the price keeps climbing. I did, to some extent, with Microsoft stock back in the 1990s, although I got in too late to make the astronomical profits that Microsoft's early-buyers did, and I was never really comfortable in the stock market....I preferred the safer tax-free investments.

bitkahuna

iTrader: (20)

LexsCTJill, your position in this thread has been 'evolving' to say the least.

at first you were saying you'd rather buy toyota stock because it's worth more than ford. (obviously toyota's share price is higher, but for the same total investment you can buy more ford shares of course, and all that matters is where a stock price goes FROM THE TIME YOU BUY IT). if ford's $10 and goes to $12 you've made 20%. if toyota's $100 and goes to $102 you've made 2%. both $2 moves.)

now you're saying you'd rather have toyota stock because it's a better run company than ford. (which i don't doubt)

but i agree with you that buying either is very risky right now, but i'd agree that toyota stock is less risky, but i'd also say ford stock has more potential upside.

Toys4RJill

So let’s rest and recharge here. Let’s start over.

I called Ford stock pathetic. Would I rather have Toyota or Ford stock? Toyota every which way. Why? Because, the value of the Toyota stock is worth more to me. I do not want more shares of Ford vs Toyota. I want the Toyota shares as they are a better long term buy. Why do I feel this way? A far more stable company. Tremendous market share growth over the years. Future potential is far higher than Ford. One of the highest value brands in the world. All of these points, are reflective in their stock price. <TO ME>.

Does any of what I said have value to you?

Toys4RJill

So why do you feel this way?

tex2670

But again, the relative risk is NOT because of the PRICES of those stocks—Toyota is less risky because of the FUNDAMENTALS of each of those companies. If Ford and Toyota stocks were trading at the same price, they wouldn’t suddenly be the same risk as investment.

Stock price keeps coming up in the discussion—but those that keep using it as evidence of the quality of the investment keep proving that is not the case in trying to justify that position.

tex2670

Here’s the problem— why is Ford STOCK pathetic? Don’t you mean Ford Motor Company is pathetic?

Toys4RJill

IMO, compared to other automakers, the Toyota stock price is reflective of their company fundamentals. The same inferences might or might not apply to other automakers stock.