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Super Goon At Large
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Yep and it will go even lower I bet :unhappy1:
 

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Discussion Starter · #7 ·
BIG MACZ said:
Note to self, call broker and buy GM stock, they WILL NOT go out of business. There will be a recovery.

Yeah I agree. I think they are in for some major changes but as for a stock to pick up for the long haul I think its a fairly safe bet.

I still think the bottem has not totally fallen out yet. Maybe a bit lower.
Anyways thats my .02 and thats about all its worth.
 

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Being I work for GM I sure hope we are at the bottom but I don't know what is going to stop management from putting us in bankruptcy. Seems the way to do restructuring with large companies in the modern age. The company builds great cars and trucks, but the market is dropping volume and that market is moving towards small less profitable cars, can't see the recovery coming anytime soon.
 

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I've Survived Everything!
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GM will in all probability survive but as a completely different company. Some kind of buyout will in all probability occur. The purpose of the buyout is to eliminate the union. GM has too great a cost for labor as compared to the competition. The elimination of the union will correct that disadvantage. GM will survive as a much stronger company but buying the stock is not the way to participate in the recovery, buy GM bonds.

Even though I feel survival is in the works, things will get much uglier before it gets better. We are very early in the revitalization of the automobile industry in this country.
 

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ghart said:
GM will in all probability survive but as a completely different company. Some kind of buyout will in all probability occur. The purpose of the buyout is to eliminate the union. GM has too great a cost for labor as compared to the competition. The elimination of the union will correct that disadvantage. GM will survive as a much stronger company but buying the stock is not the way to participate in the recovery, buy GM bonds.

Even though I feel survival is in the works, things will get much uglier before it gets better. We are very early in the revitalization of the automobile industry in this country.
Take a look at Gil's messege in 12 to 18 months. I would bet on his statements being correct and have a better return on that bet than buying the stock now and seeing what it will do.

Any takers?

Great insight Gil. :gunner:
 

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GRH said:
Remember Chrysler.... and Harley Davidson?

No way the government allows GM to fail... imo ;)

Are you kidding, I don't think our government could careless about GM. Bush told management to basically quit whining and go build significant cars when our government was approached about making it a level playing field with the imports.
 

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Aggressor Tom said:
Are you kidding, I don't think our government could careless about GM. Bush told management to basically quit whining and go build significant cars when our government was approached about making it a level playing field with the imports.
Nope... not kidding at all..... time will tell...
 

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I have 2 foreign SUV's, one is a Chevy Tahoe and the other is a Ford Explorer. I beleave one is made in Canada the other is made in Mexico.
 

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Treads said:
Take a look at Gil's messege in 12 to 18 months. I would bet on his statements being correct and have a better return on that bet than buying the stock now and seeing what it will do.

Any takers?

Great insight Gil. :gunner:
Here's one example of a GM bond that would make more money for you than the common stock with less risk.

The GENERAL MOTORS 8.375% of Jul 2033 Caa1/B/CCC+

Closed today at 56, that means 56% of the face value for you non bond investors.

At that price it is yielding 15.264%

So, for example, if you buy 10 bonds it will cost you $5,600 and will pay you $837.50 per year in interest while you wait for GM to get their act together.

When GM is out of the woods this bond could easily go back to par, that is 100% of face, $10,000 in this hypothetical.

If GM goes bankrupt, holders of bonds get paid first. The common stock becomes wallpaper!
 

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I was out for lunch with a client today and he was telling me about the Prius and how it works.

Absolutely Amazing!

It's going to be 20 years or more before GM, Ford, or Dodge come anywhere close to this type of technology.
 

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hmmm..
from what was reported on the news last night
GM suffered the LEAST of the big 3 in new car
sales compared to last year..
:rolleyes:
 

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Mr Baja Pete said:
I have 2 foreign SUV's, one is a Chevy Tahoe and the other is a Ford Explorer. I beleave one is made in Canada the other is made in Mexico.
Incorrect, the Explorer is built in Louisville Kentucky, not sure on the Tahoe, but I'm 95% sure it is built in the U.S. as well.
 
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