GM is cheaper than gas

So a friend of mine is interested in buying GM stock right now because it’s selling so low and he thinks that the government will eventually juice it up with the $25 billion bailout, which ‘should’ subsequently the prices of the company’s stock. But bailout or not, I insisted that he find better stocks to invest in, because afaik GM is tanking after years of a bloated and inefficient management structure and an inability to fulfill its fundamental objective, which is to make and sell cars that people want to buy. So I thought that even if the bailout came through and the stock ticker didn’t flatline, it still would take a long while for the company’s share prices to rise significantly, since there’s no way that GM is going to be able to sustain any kind of profitability anytime soon. Even before the crisis, this company was a pretty shitty company to invest in, mounting net losses and losing market share every year. So I figured that if he actually buys this stock, then he’s really no different from the huge fish who look for nothing more than a huge suck-out, and I’d prefer that he doesn’t gamble on a losing bet.

What do you think? How should I break this to him?

ROFL huge fish, why would he invest in an automobile stock in a recession???

Also, GM and Daimler Chrysler had been on a slump since the japanese manufacturers started raping the market.

DC did so so poorly that it went broke and it was bought by Cerberus and GM wont do any better, American cars are just shitty compared to Asian cars who are entering the american market stronger and the European market is only beggining to introduce their cars in USA.

investing in GM is worse than burning money

I don't approve of this unpatriotic thread.

On November 20 2008 11:15 Tien wrote: I don't approve of this unpatriotic thread.

aren't you canadian? lol..

if he bought gm this morning and maxed out on margin he coulda pulled a jyang and almost doubled his bankroll in 3 hours!

he coulda also just bet his entire bankroll on black and doubled it in 1 minute too.

i think his investment is a flip

On November 20 2008 11:23 TenBagger wrote: if he bought gm this morning and maxed out on margin he coulda pulled a jyang and almost doubled his bankroll in 3 hours!

jyang 1,000 x his bankroll

the bailout will not overcome the structural problems with the company. the labor structure is the most problematic and it would require ch 11 to remediate to any extent. a bailout would preclude ch 11. bail it out and it still sells shit that nobody wants and bleeds money. that's why it's selling at buck fiddy.

On November 20 2008 12:08 sawseech wrote: the bailout will not overcome the structural problems with the company. the labor structure is the most problematic and it would require ch 11 to remediate to any extent. a bailout would preclude ch 11. bail it out and it still sells shit that nobody wants and bleeds money. that's why it's selling at three fiddy

Id never invest a cent in GM, its money you throw out the window. This company is a pile of shit.

GM is 60 billion in the hole, they are going to go BYEBYE.

If one is going to invest in an automaker (big three anyway because price is so cheap) they should invest in some Ford. They are the only ones who have the slimmest of all slim chances of making it. They most likely wont, 99% sure they wont, but the price is so cheap that if and when GM and Chrysler go under, they WILL have the marketshare.

I'm actually going to buy the paper stock, just 1 share because the paper is very beautifully designed and it's nice to have something that proves they were once a company.

fact remains that if one bought earlier this morning and sold it a few hours later and levered x2 they woulda had a return of 470% in a couple hours

above posters are right a government bailout aren't gonna magically generate more sales because they can't keep up with japanese innovation. If you had to buy why not just go TYO?

Personally Intel is looking mighty juicy right now...can't go wrong with a blue chip woodchucker

lol

i have very good stoploss exits thats why i betted my entire br a lot + margin

and dont go GM its goin to busto

when u buy a stock u dont risk like ur entire $ spent, u have stoplosses and profit taking objectives which means not all my profolio is at risk.

everyone is in a recession...invest in schwinn or huffy.

jyang you are sick at investing, you gotta be my financial adviser when i have money to invesnt

so whatss the countdown to busto with my investing style?

On November 20 2008 12:37 TenBagger wrote: fact remains that if one bought earlier this morning and sold it a few hours later and levered x2 they woulda had a return of 470% in a couple hours

lol day trading... woulda coulda shoulda. soooo frustrating to consider what could have been

is it really humanly possible to play it profitably?