Shares of Ford (F) are trading down today on potentially 2 news: i) the ever-tiring semiconductor shortage that market has been hearing about for this entire year, but continuing to punish automaker stocks and ii) spend 2 billion to stop manufacturing in India.

The second, seemingly negative news for Ford stock, is exactly what we've been talking about in our bullish thesis for investing in Ford. Ever since the arrival of CEO Jim Farley last October, Ford has been focusing on cutting losses and focus on profitable segments of their business; this is a fundamental change from the mission of Ford from day 1, which they wanted to be in every market possible. Over the last 10 years, operations in India cost Ford ~2 billion in operating losses. Now, CEO Jim Farley, per his commitment, has decided to close out this proven unprofitable segment of their business. In a statement, Farley said: “As part of our Ford+ plan, we are taking difficult but necessary actions to deliver a sustainably profitable business longer-term and allocate our capital to grow and create value in the right areas.” 

Ford trading down on this news represents nothing more than a buying opportunity for folks who have yet to initiate a position in Ford. For current shareholders, we advise to wait for a pullback towards lower 12, or 11. Ford is a long-term turn-over and growth story, we're only at the infancy of this turnover.