Showing posts with label gm. Show all posts
Showing posts with label gm. Show all posts

Is GM a Good Buy?

gm stock chart
Much has been made of the largest IPO in history...General Motors (GM). After their brief time away from Wall Street (Bankruptcy), they have been able to rearrange their liabilities column to hopefully be able to survive the rest of the storm. Of course there have been many large companies that have been able to take the road of bankruptcy, only to come back stronger, however, I am not sure GM will be one of them.

First of all, they have been out competed the last 10 years to the Japanese in the construction of automobiles. Sure, they do get their "American" made claim to their brand with their big trucks and SUVS, however, as consumers tighten their budget, they shop for efficiency and longevity. All signs point to Japanese in that regard. Now, GM is attempting to re-brand themselves into a competitive brand to the Japanese, while still trying to keep their loyal "American Only" customers. At any rate, their stock seems to be gaining a bit of momentum in the short term (see graph above), however, if post holiday stock woes are in our midst, this trend can quickly change. In my next post, I will discuss an auto stock (Indian) that is definitely worth noting and watching. Happy Trading.

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Emergency Update*** Auto Bailout Is Denied In Senate

Thursday night, the auto bailout was officially rejected by the Senate as there will most likely be no bailout passed before the new year. Wow, what a surprise. Expect a serious negative response tomorrow in the market. World markets are already hurting hard from it. Well, I can't say that I don't agree with rejecting the bailout, I just thought they would pass the bridge loan. Tomorrow should be an interesting day. Have a good night.

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