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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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