Okay all you Jim Cramer Fans. Do you invest money into Generous Motors?
They hit a 52 year low of $10.12 this week. They had a 52 week high of $43.something.
Buy low and sell high. Will General Motors pull out and make you money? Will Toyota buy GM and make you even more money?
What would you do?
I've wondered the same thing. I guess it would depend on if you were looking to invest in the short term or the long term. I think there's more money in the long term. I think it's going to take GM several years to come out of the current slump.
I don't see Toyota buying GM. I don't see why they would want to and what that would benefit them.
IMHO I believe it is the best longish term investment out there, GM is in China building a platform, once that market really opens up, they will be unbelievably big and they won't have to worry about unions for a long time if ever, can you say cash cow.
at 10 bucks a share a small number of your chips could turn into a very large number quite quickly if gm turns it around.
GlennS wrote: if gm turns it around.
Boy there's something to count on!
I would go for it, GM does seam to be getting better, If only they would back off of the SUVs...
I'd head on over to "The Truth About Cars" web site and read a few of their editorials titled "GM Death Watch". The picture for GM is not good, and they don't seem to feel Toyota would want any part of them.
well, if you invest something small like 102 dollars, you get 10 shares. That may not seem to be much, but if they return to the glory of years past, you could make a few thousand dollars if you sit on it for a while.
I would take Jim Cramer's comments with a grain of salt. Didn't he suggest buying Bear Stearns a week before bankruptcy?
I plan on buying a few thousand dollars of GM stock in the next couple weeks. I'd say I have a 75% chance of it being a good investment.
Realize that the factors mentioned such as the China effect are built into the current price.
From my prospective, the biggest factor that will determine GM’s fait is who wins the presidential election:
McCain = let capitalism run its course, if GM isn’t able to compete, so be it, let them fail.
Obama = spread the good and bad amongst everyone so there are no big winners or losers, make everyone contribute to bailing GM out.
Obama has three times as much money as McCain but he’s aggressively moving away from his hard left positions which earned him the DNC nomination which will both cost him votes and deny him the ability to attack McCain as a flip flopper…bottom line, 60/40 Obama which suggests buying GM to gain from the socialistic bail-out mentality we are likely to see in the coming years as once he wins, he’ll move back to his true hard left positions.
In a general sense, I recommend moving positions away from smart / well managed companies to ones beaten down as a result of their not being able to compete fairly as they will likely to be given unfair advantages in the near future.
BTW…I’m not down on Obama in any way nor am I interested in using this thread to make disparaging comments about him…it just is what it is…he thinks along socialistic lines…socialism isn’t a four letter word, it simply represents a different belief system than the one conservatives have.
I’ll be the first to say that Bush has made many huge mistakes and there’s no shortage of liberals that have been wonderful presidents. So again, I’m not down on Obama, I’m just realistically pointing out that he thinks along socialistic lines so we all need to make preparations for this such as adjusting our portfolios.
i'm getting in at $10 if it stays there until payday.
It's one I've been watching for a while. I'll probably throw some cash at it very soon. I believe that in a 5-10 year horizon, it'll be a nice return.
I was talked out of buying (by my stock broker) both Harley and Chrysler just before they hit their low points. GM may be there right now.
Using the Warren Buffet approach of buying companies you are familiar and happy with, I feel pretty good about GM. While they are mired in the SUV world, they are doing some things very right. A cheap but effective hybrid technology and a world car winner in the Malibu/9-3/Vectra, for starters.
There are still some serious challenges, but I think it's getting very close to the bottom.
Jack
I think you will see GM stocks rise back to the mid 20-30s in the next three years. A couple hundred in GM stock could pay for a Challenge car.
GM's answer to the need for a small economical car: Aveo
nuff said
I just was listening to Marketplace on NPR yesterday. From what they're saying, its a good time to jump ship before you lose it all :)
Not quite that bad, but market analysts seem to think it won't rebound before major changes happen. Toyota is still in the game to buy GM, GM is still trying to sell Hummer and Saab (with no bites) and their current budget suggests that they need $42 billion to stay afloat until 2010, so they are borrowing from banks to do it since they are seeing no profits from car sales anytime soon.
I might put a few thou on GM, then dump it next fall after the new president gets inaugurated. That usually gives an artificial boost to Wall Street, and since we certainly won't be putting McCain in office, foreign relations (and oil prices) should temporarily benefit which will help truck and SUV sales again. I think the wave will ride through Sept, and by then its a whole new ballgame
I am not up to date on this but didn't GM invest in building cars in China, and if so wouldn't that be a sure thing to turn them around, it makes sense as the Chinese will just copy you anyway so why not get in first. I see this move as the savior of China if it is correct.
Not a great day for GM, or anyone else for that matter: http://money.cnn.com/quote/quote.html?symb=GM
I knew GM offered a strong dividend but I didn't know it was 9.68%...that's crazy.
BTW, the used care index fell 6.2% in June which is just more bad news...less for trade in means fewer new car sales.
GlennS wrote: at 10 bucks a share a small number of your chips could turn into a very large number quite quickly if gm turns it around.
But the problem is that even with GM "turning around" as they have the last couple of years, the stock still fell to the cost of a #5 meal at burger world. Isn't it even down to $6 now?
