posted
picked up some of this yesterday. Pays a 2.00 dividend yearly. Threw it in the kids college fund
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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20.00 is the price it bottomed at in the nineties. I don't see it going below that. They have some interesting fuelcell things going on and may be good for a government bailout.
If they cancel the dividend at anypoint I'll probably sell.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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posted
I Test GM Fuel Cells Every Day!!! Should be a good buy I like the fact that they are trimming the fat - shows that they should be able to avoid bankrupsy, unlike Delphi.
Posts: 507 | From: Rochester, NY | Registered: May 2005
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<thestockmaster>
unregistered
posted
Are you guys kidding this stock is horrible. They can't turn any profits. They lose billions a year. I sold short a couple of days ago and I'm at around a 7% profit.
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quote:Originally posted by <thestockmaster>: Are you guys kidding this stock is horrible. They can't turn any profits. They lose billions a year. I sold short a couple of days ago and I'm at around a 7% profit.
not kidding!
stocks bottom, this one hasn't been this low since the 90's. Fundamentally it has been crushed recently. currently 8% dividend, and at a low. I'll take my chances of it hitting 30.00 before it hits 10.00. the dividend only helps. 2.00 a share is nice. These shares are free in about 8 years. I like dem odds.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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posted
Engineers here are talking the stock might get down in the high teens. All speculation though based on their projected future, consistant loss of market share.
Posts: 507 | From: Rochester, NY | Registered: May 2005
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posted
ANNANDALE, Va. (MarketWatch) -- OK, all of you who claim to be contrarian investors: It's time to see if you walk the walk, not just talk the talk.
How many of you have stepped up to the plate recently and bought shares of General Motors?
You say that you don't follow the crowd. You say that your favorite quotation is Nathan Rothschild's famous phrase that the time to buy is when the blood is running in the streets.
Well, now is that time.
GM is struggling to avoid going into bankruptcy. Its shares on Monday traded for their lowest price since October 1987, nearly twenty years ago. (Read full story.)
That's devastating, considering that the Dow Jones Wilshire 5000 Total Return Index is up nearly 700 percent over this same period.
If it turns out that you don't have the stomach for buying GM, you perhaps can take some solace from the fact that very few of the so-called contrarian newsletters have been buying GM either.
I know because I queried the Hulbert Financial Digest's database for newsletters that currently are recommending GM. Only three emerged from my search, out of a total of 190 newsletters that the HFD tracks.
Interestingly, however, all three have excellent long-term track records.
The first is the Prudent Speculator, which is at or near the top of the HFD's performance scoreboards for performance over the last several decades. To be sure, the position in GM that the newsletter's model portfolio currently owns was purchased in June 1985. But editor John Buckingham continues to hold that original position.
The most recent comment about GM from Buckingham that I had on file was made in November, when he wrote: "Despite all of the bad news surrounding GM, we retain our belief that the company will survive the current turmoil with sizable share price gains awaiting those who maintain their current positions."
The second newsletter currently holding GM in its model portfolios is the Buyback Letter, edited by David Fried. This newsletter hasn't existed for as long as the Prudent Speculator, but its track record is long enough and good enough to justify paying attention to it. Since the beginning of 1997 (when the HFD began tracking this newsletter), its model portfolios have produced a 16.4% annualized return (through this past November 30), in contrast to a 7.9% annualized return for the Dow Jones Wilshire 5000.
As was the case for the Prudent Speculator, however, the GM position that the Buyback Letter currently owns was established many years ago - in April 1999, in this case. And I couldn't find any comments about GM in any of Fried's recent communications with subscribers.
The third newsletter that emerged from my search of the HFD database is recommending GM at current prices. It is the Turnaround Letter, edited by George Putnam. Its track record also is good. According to the HFD's calculations, it is in second place for performance over the last 15 years among all monitored newsletters, with a 20.5% annualized return, vs. 12% annualized for the Dow Jones Wilshire 5000 index.
While acknowledging the company's difficulties, Putnam said that he believes that GM has the "resources to prevail." For example, Putnam writes, GM "still has $19 billion in cash. It also plans to sell its GMAC finance business, which could be worth another $35 billion. That's not bad for a company with a market capitalization of only $13 billion."
Note that Putnam penned this comment in early December; GM's market cap has fallen since then, and is now just $11.2 billion.
The bottom line? It takes guts to buy or hold GM these days. But three newsletters with some of the best long-term records are exhibiting that quality, and are at least sticking with the stock, if not outright recommending it for purchase.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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posted
It will hit $12 by summer. Maybe even fasted if Delphi goes on strike in January. Now if Delphi makes a deal with the UAW....I would expect to see a $3.00 bounce or so.
Posts: 2367 | From: Detroit | Registered: Mar 2005
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quote:Originally posted by R1Man: It will hit $12 by summer. Maybe even fasted if Delphi goes on strike in January. Now if Delphi makes a deal with the UAW....I would expect to see a $3.00 bounce or so.
a few, not many, of the big boys are buying...
at 18 year low now, just upgraded by UBS.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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quote:Originally posted by JHenry: Engineers here are talking the stock might get down in the high teens. All speculation though based on their projected future, consistant loss of market share.
These are looking like some pretty good prices. Excellent entry point. I don't have any cash right now. (I'm getting eaten alive in IVAN)
Posts: 507 | From: Rochester, NY | Registered: May 2005
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posted
You know the Delphi Union meets again this month. Will there be a strike? It will hurt GM if it happens, but seriously....what do the UAW employees have to lose........64% pay cut......pensions cut/reduced......medical increases.........elimination of 40,000+ jobs. Its going to get ugly pretty fast. I can't justify the risk of touch GM anytime soon. Its a ticking time bomb with DELPHI.
If GM makes it to summer without DELPHI shutting them down......Delphi won't have to worry about the employees going on strike.....Delphi won't exist. Also, my understanding at work is that GM is working with suppliers over seas to produce the parts Delphi supplies......this is a rumor but its common sence when you think about it.
Also, there has been supplier in the past that go bankrupt and still produce parts for the big 3 with no problem.....but the issue here is.....Delphi goes on strike.......there will be a PROBLEM.
I see GM like this:
Medium-high risk.....medium return in the long run (5 years+). High risk in the short term......(6 months or less).
Posts: 2367 | From: Detroit | Registered: Mar 2005
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posted
man, what a brutal Q - lost $8.45/share. $8.45 a share, for one quarter! ugh. granted that half or more was due to one-time charges, but - still. that is a *whopping* loss, $4.8B in one Q. i wonder where that stands amongst the all-time worst Q's in the history of the US economy, it has to be top-10 i'd think.
living here in MI where the entire economy is completely dependant on the US auto industry, that is not good.
quote:Originally posted by blue_in_MI: man, what a brutal Q - lost $8.45/share. $8.45 a share, for one quarter! ugh. granted that half or more was due to one-time charges, but - still. that is a *whopping* loss, $4.8B in one Q. i wonder where that stands amongst the all-time worst Q's in the history of the US economy, it has to be top-10 i'd think.
living here in MI where the entire economy is completely dependant on the US auto industry, that is not good.
ugh.
LOL, a brutal quarter was expected and they did worse than expected! unbelievable. Not a bad close tho.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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posted
should be a good move in the long term. not so good short term. can't imagine it was too unexpected.
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
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posted
The big deal with GM is how they are going to handle the union’s JOB BANK over the next few years. With all of the lay-offs coming, GM can’t afford to pay $140,000 dollars a year for each employee in the bank, and that is what they pay right now. There are around 1700 employees in the bank already. 10 to 20 thousands employee layoffs would cripple the company.
Both the union and the US automakers contract will expire next year, and you can bet there will be a lot of emphasis on changing the job bank structure. Personally, they should have never agreed to it back the in 80’s to begin with
-------------------- JT Posts: 183 | From: Bham AL (ROLL TIDE) | Registered: Dec 2005
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posted
has anyone been watching GM lately? could have got a nice 50% gain in a short period for this stock. id like to see what happens
Posts: 2329 | From: MD | Registered: Jul 2005
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