Why did this stock move on this news? Nothing fundamentally changed, the cash flow left to service debt is exactly the same.
Does Wall Street have to follow fundamental or technical analysis? In other words, does Wall Street obey any rule? No. It does what it want to do. If Wall Street does obey the rules then IBM will build a Deep Blue, or another of its kind, based on the rules that Wall Street followed and beat Wall Street the same way as it did in the chess game and therefore the market has to be shutdown since there's no more people who dare to compete.
Good short opportunity. Dead cat bouncing. No future for GM. Today is just a revenge from shorts. Fundamentals have not changed. Just wait a day and then short it.
I have been bullish on the stock last few days and this has been a very nice reward with over 100% gain in option values. I dont pay attention to fundamentals, and to me this looks like a the start of a bull run in GM.
I hold RGM thats the notes that pay a 7.25% clip. I got them at $15.00 remembering they were issued at $25.00. This means the yeild is around 11%. A lot of funds are not allowed to hold "Junk" but some funds specialize in it and pick up a bargain. Technically the bonds are going back to $20-25. I wouldn't short this just yet wait a while you could get hurt. The stock has tremendous upside at the moment (look at the volume!)although the business is a dog we all know that!
I agree with you get money being given in the options. It is getting bs upgrades and you can be a few funds and institutions are buying this short term. with the 5dollar plus rally with no pullback and if you look at the money available in out of the money puts, writting calls and starting a short position looks good considering the fact gm is only selling the same amount of inventory it did thirty plus years ago. Not to mention compared to the other old top three gm's real value is in the mid to high teens at this time with the reconstruction of the company. You can bet when the funds decide to take their profit today? as it is a long wknd or next few days..the new longs ....US will not have time to get out. I have traded GM stock last few days....big volume but if you notice the bid/ask quotes....are small in volume...I bought and sold and shorted over this week and noticed it took several seconds or attempts to get filled....very strange... I personally started writting calls when gm just about hit 29dollars.. will let them expire take premium and if necessary the stock and wait to cash in before summer leave.. new traders should be very careful if looking at placing long term positions....you are being baited.. hope all your trades good well, w
Downgraded to sell. http://www.marketwatch.com/News/Sto...9A4-4F0B-ACB9-A0D448988AAA}&siteid=mktw&dist=
Be careful if you are short... DJ GM To Make 'Major Investment Announcement' Thursday >GM DOW JONES NEWSWIRES . General Motors Corp. (GM) said it will make a "major investment announcement" on Thursday at its Warren Transmission Plant in Warren, Mich. Rick Wagoner, chairman and chief executive of the Detroit-based automaker, will make the announcement. No further details were provided. The company's shares recently lost $1.19, or 4.2%, to $26.89. -Gabriel Madway; 415-439-6400; AskNewswires@dowjones.com . (END) Dow Jones Newswires May 30, 2006 13:20 ET (17:20 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 01 20 PM EDT 05-30-06