I clearly missed the boat and am not so sure how to play this on Monday? Any thoughts anyone. I think they still are going up but am wondering if they will go up even if the market goes down? Have these ships sailed or is there still more upside? And if so which one F or GM?
The odds of General Motors surviving in a recognizable form are, IMO, radically different from the odds of GM surviving in a non-zero form. Figure out which one you actually believe has a future, and trade accordingly.
I think I missed the boat on the initial move but from looking at C continue its move up I am wondering if F or GM might react in the same manner.
The market could either rally or tank on the GM bailout hearing. Last time there was a detroit bailout hearing the market tanked. Nobody knows. Personally if it rallies I would fade the rally, if it tanks id be careful chasing it.
None of them deserve to be bailed out but it doesn't matter because plenty of tax payers money is going right towards 3 big losing companies.
Random.C, you said the same about C, but it seems ok (shareholders did not get screwed). I am not saying you are wrong about GM, but don't be 100% sure.
It's a good think that the DOW is a price weighted index, with GM's decent down to 5. Bailout? Nothing can save them from bankruptcy, but don't think that makes me a bear on the market. GM is a $5 stock, right? And you also know that their losses per share are $40+, right? So why would you buy a bankrupt company? F is marginally better, let's say, "LESS BANKRUPT", LOL, is that even possible? A $2.69 with about $5 losses per share in earnings. Oh, yeah, hold me back from buying those bankrupt companies. <i>Ex Post Edit: Thank god stocks are logarithmic investment vehicles.
it is probably not that simple. how would you explain that someone has been buying a crapload of these companies. usually, i don't have positions in these stocks, no do i want to hold them (long or short) longer than intraday. i do have a small short position in F right now.
I like GM puts for March at 5. The company is already bankrupt. I believe there will be a move towards restructuring before any bridge loans are given. I'm thinking of shorting 100 shares anyway.