Is Ford Winding Down Mercury? (C, F)

Bloomberg News reported yesterday that Ford F may be preparing to wind down its Mercury brand. Today, CEO Alan Mulally told analysts that he had nothing to add regarding the reports, but he did say that Ford (F)continues to look closely at its portfolio of brands and consider strategic options that would be good for business. In a research report, Citi (C) said that if Ford does indeed wind down their Mercury brand, it would be a logical long term step. They cited Mercury's share erosion over the years, combined with its minor role in Ford's new product plans as being reasons Ford would consider scrapping the 71 year old brand. Citi said that while they "remain constructive on auto stocks and the Ford turnaround story, we remain sellers of Ford shares on a 12-month valuation-based risk/reward framework." The firm has a $10 price target on the stock. During today's trading session, F shares have lost 1.83% and are currently exchanging hands for $11.77. Year to date, Ford stock has gained 17.7%. In the last month, however, F has declined 11.17%.