When Toyota’s problems began to surface about their gas pedal’s getting stuck under their floor mats we saw what happen to their stock.  It tanked from $87 all the way down to $71 in 2 weeks.  Their problems were real and only started as a minor issue with numbers increasing over a couple month time span.  Once they announced that they recalled 2.3 million cars on January 22nd 2010 investors became shakey on what this would mean fundamentally to the company.  Key highlight difference between the situation with Ford and Toyota is that the estimate recall number of vehicles will only be about 250,000 compared with 5 million for Toyota.  Also what must be remembered is that Toyota was almost a 200 billion dollar company and Ford is only worth 39 billion.  So just maybe the recall amount is relative to market cap but, price action, following the story, and reading only facts is crucial in timing this potential short trade.  

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