sell, unless he wants to wait for a bounce. which there might not be before a crash once the world realizes there's nothing anyone can do to solve the banking crisis
If he's a close friend, unfortunately the right answer is 'I feel really badly about this but it's really hard for me to give you advice - you have to play your own hand' and then go on to explain exactly why this is the case. That is, unless you were involved in the decision to buy. In that case, sell 1/2 and sell the rest below xxx.
When I talk about GM moving to KY,TN,TX I am talking about their manufacturing operations, I am really saying they need to go to non-union, right to work states. I am really amazed you would conclude I was talking about selling products in those states...lol. GM and Ford have received cheap guaranteed loans of $25 billion from the government. The Congress very quietly attached that to a defense spending bill. Certainly unfair to Toyota, Honda, John Deere, Caterpillar and other companies in the vehicle industry.
Instead of selling, I would try to find a rally this week and buy puts. You friend has 4200 shares. Worth about 20K. For about $1,000 he can buy $5 puts, this will put a floor on his stock at $5 through the end of the year. By then hopfully Vix will be lower and he can roll over with a longer term puts. Politicaly the unions will have awesome power with Obama, GM will become the sick baby of goverment. It will survive.
I have no idea what you're talking about. My only contention is that your statement that GM moving their operations to those states is what they need to do to recover is flat wrong.
You did a quick edit on this post........Gm is in the south but they have unions. It would be good if GM could stay in Detriot and go Non-union, but they would never happen. It will only happen once everyone has left Detroit, and that should happen soon. Then we can all start over.
You're on the right track imo - - but change has got to start from the top - or forget it. Since the idiots at the top are, well, educated idiots (the worst kind of idiots) there is no hope for the once mighty GM. Steve
I would hold and sell $9 Nov. puts. They are about $1.00, you collect almost $4K....If GM goes up then someone make take it at $9....If it never makes it I would sell puts and collect everymonth