“U.S. stocks tumbled, sending the Dow Jones Industrial Average to its worst June since the Great Depression, as record oil prices, credit-market write downs and a slowing economy threatened to extend a yearlong profit slump…Initial jobless claims totaled 384,000 in the week ended June 21, unchanged from the previous week’s tally that was higher than previously estimated, the Labor Department said. The total number of people collecting benefits rose by 82,000 to 3.139 million in the week ended June 14, the highest since February 2004.“ –Bloomberg
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Meta
Hey Al:
since everyone is saying to sell GM is it time to buy?
No way
you might buy some now at $10. but you may be able to buy some later at $5, and even $2.50. if you are okay with that, then go for it. but keep it under 10% of your portfolio.
my short TGT long WMT has been doing pretty well lately.
Good trade – – – WMT posting higher sales is really an example of hedonic-adjustment, only with an entire firm instead of a single item.
I’m not following your idea w/ GM though caveat…buying the stock at $.25 a share is a bargain if the investor can be certain that the company will not go belly up. I don’t think that’s a certainty at this point. In fact, I would even be too scared to sell puts at $2 expiring in a year.
I think GM will still have some global market value, but it is so far beyond what it used to be (think railroad stock before the Great Depression).
I’m not sure where the long term earnings of GM will be, even though I am sure they will be positive. So that is why I think JR needs to play it as if it might be close to a bottom now (and nibble here) but be prepared if it’s not a bottom yet, and have some powder dry to pick more up at lower levels.
Over the weekend I rented a Hummer h3, it was all they had, the thing was a pile of crap, really underpowered and not that functional.
Next time I think I will try for a Caddilac as at least they are comfortable.
As for the stock of GM I have a good feeling for the company, I may take my entire 401k all $2000 of it and put into GM. I will either make money or prove that privatizing social security is a bad idea.