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Frank, 

 

Thanks for your question.  As you might know, an enhanced conversion exchange for this Ford Motor Co Cap Trust II 6.50% Preferred (P-FS - $38.86)  for Ford Common (F - $8.06) just ended.  I did not participate in the exchange.  

 

Since I am not your financial advisor and do not know the details of your specific financial situation I cannot tell you if these securities are right for you.   What I can tell you is what I'm doing.  I continue to hold the Preferred shares.  I've owned them for years.  I hold them in both my tax deferred IRA (because these are not qualified dividends - no tax advantage) and my taxable account.  But these are risky assets and should not be treated like a safe bond.  They make up less than 1% of my total investment portfolio. 

 

About Ford:  A few years ago Ford had been a target of criticism by the Rain Forest Action Network (RAN) and the Freed From Oil Campain because of its underinvestment in hybrids, though recently Ford received accolades from RAN for its commitment to build the first "road ready consumer class plug in hybrids."  

 

More about Ford:  The descendants of Henry Ford that remain involved in the company have significant control and hold stock.  For more on the Ford legacy, see Betsy Morris' piece from May 2007 at Portfolio.com. 

 

Disclosure: I have owned Ford Motor Co Trust II - 6.50%  Preferred - S (F-PS) in different amounts since 2002 (Buy Ford Preferred May 2006), (Comments on privatization August 2006) I do not own Ford Common (F).  I have traded Ford Common in the past two years.  I have never owned a Ford vehicle. My first car in high school, a 1968 Volvo 122S,  was manufactured by Volvo Cars, which was bought by Ford Motor in 1999.  There have been rumors it might be looking to sell Volvo as part of a restructuring.  I hope it doesn't, Volvo is one of its better brands.

 

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