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Join Date: Nov 2002
Posts: 1,955
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Buy GM again?
I bought earlier this year on a dip at right around $26 even, sold later in the year at $34.
Now it's at around $23. That's a 23 year low. There have only been two very brief periods since GM went public around 1960 that it has dipped below $20. So, basically, it is very close to the couple of lowest points its been since 1960. It's being pushed down on having to restate its financials (showed $300-400 million profit that wasn't there), and a potential strike by Delphi workers. The financial stuff seems like not a huge deal. If the strike is averted, which I think it will be, that goes away too, and I think GM enjoys a bit of a year end rally like the rest of the market. Possibly pop 15-20% upwards very quickly, then sell. I suppose the biggest downside risk at this time is bankruptcy. If you take bky out of the picture, I don't think there is too much risk in this stock at $23. What do you think? |
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11-10-2005, 09:24 AM
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I still don't know where the big concern about bankruptcy is. Last I read, they have something like $40B cash reserves. Even losing a billion a quarter, they should have time to turn that ship around.
Dan
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77 911 2.7 Turbo Look 98 4-Runner 03 F-250 Power Stroke 93 Toyota P/U |
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11-10-2005, 09:33 AM
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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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What would make one choose GM over Ford?
I am looking at both as well, including their bonds: Ford 11+% to maturity, GM, even higher |
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11-10-2005, 10:15 AM
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Join Date: Jan 2005
Location: Minneapolis
Posts: 7,482
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Are you buying to speculate? Or buying for long-term return and dividends? I think that may answer your question
E |
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11-10-2005, 01:23 PM
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Posts: 1,955
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speculate. try to make a quick 10-20%.
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11-10-2005, 03:44 PM
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Join Date: Aug 2003
Location: SF Bay Area
Posts: 7,951
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Rule #4 - The trend is your friend. Better be buying a put on a downtrending stock.
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11-10-2005, 08:20 PM
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Registered
Join Date: Feb 2004
Location: Granite Bay, CA
Posts: 767
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GM
Assets Current Assets Cash And Cash Equivalents 32,261,000 Short Term Investments 23,013,000 Liabilities Current Liabilities Accounts Payable 110,119,000
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99 supercharged Boxster 1977 911 race car - gts (sold)  Spec 911 Racing Porsche Racing Club |
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11-15-2005, 12:53 PM
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Carbon Emitter
Join Date: Feb 2004
Location: Socialist Republic of California
Posts: 2,129
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Is GMAC tied to a GM automotive bankruptcy?
If you think GM is in trouble now, just wait until the real estate market starts receding and foreclosures start happening. GMAC is big into mortgages (including mine) and there is going to be a LOT of bad debt in the near future. Even if that doesn't pull them into BK, their pension and employee health care (free for life) obligations will force them into it at some point. I read somewhere that GM's union labor force is more expensive per employee than Microsoft's!!! Last edited by jkarolyi; 11-15-2005 at 01:03 PM.. |
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11-15-2005, 12:59 PM
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Registered
Join Date: May 2001
Location: Peoples Republic of Long Beach, NY
Posts: 21,140
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Forbes Mag has an auto business writer doing his own page on a regular basis.
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Ronin LB '77 911s 2.7 PMO E 8.5 SSI Monty MSD JPI w x6 |
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11-15-2005, 02:58 PM
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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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Buy Sell Hold Sell Short or None of the Above?
 jurgen |
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11-15-2005, 03:21 PM
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Personally I am staying away from American Auto. They are getting their arses handed to them by the foreign automakers and are having to cut their prices to the bone to try and compete. I prefer to pick out smaller growth type companies that haven't been picked up by the institutions yet...
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Rick 1984 911 coupe |
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11-15-2005, 04:46 PM
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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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Anyone think GM will go bankrupt before March 15, 2006? I spy some GM bonds with crazy return. Coupon is 7.1%. YTM is 12.97% for an order of 10 bonds.
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11-28-2005, 02:10 PM
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