I am having a tough time deciding what to do with GM. Seems like the stock is such a bargain and has a terrific dividend yield, but there is such loom and gloom hanging over it about possible BK. What do you think?
Why mess around with GM at this point? Long or short, I think it's just a big risk/big reward gamble right now. Plenty of other stocks to trade. JMHO.
Alot depends on what Tracinda does. They still own 40 million shares, and if Kerkorian is looking to bail on his position, then there won't even be a dead cat bounce. The short-term key of course is the delphi negotiations. If the union strikes, GM might hit 10.
Unless they can push congress to support them like they did to Chrysler which made it worthwhile for a while.
Define what would work as a reversal for your trading style and trade it. At this point, I don't see all the negative news having been discounted in the stock's price. I am not an expert on longterm stuff, but I doubt you want to pick a bottom on this one just yet.
At its most simple the autoworkers have a choice of being out on the street now with pension and medical benefits or being out on the street in 3-5 years without - if you were 55 what would you go for?
============ 5 minutes till NYSE open. May or may not comment on positions , so put it this way; when the late great DAL[delta airlines ] was below 50 /200 day moving averages, was glad to PAY dividendsd not collect dividends, even though Usually collect more dividends than pay them. DAL seemed like a bargain @20.00; its about 00.75 now, yet still a great brand with excellant customer service, probably will fly with them again Wisdom is profitable to direct.