Gm

[bloosteak]

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

 

[FanOfFridays]

Quote from LuckyGirl:

A friend of mine bought $80,000 worth of GM stock at $19.
So obviously he should sell, but should he hold on for more of a bounce?

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.

 

[Mercor]

Quote from traderNik:

I've been reading quite a few of your posts in P & R lately and I find I'm in disagreement with a lot of the things you have to say.

With regard to GM, was this meant to be a joke or is it serious? You believe that GM can overcome their secular problems by moving to Kentucky and selling cars to citizens in these 3 states? What makes you think that GM isn't already selling cars in these states??
You think moving to Kentucky will fix all this? Aren't Kentuckians who would tend to want to support GM already buying GM products?

The only hope - I mean the only hope for this company, is a massive government bailout, one which would be the largest in US history. As a good right-winger and free-market advocate, would you be for it?

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.

 

[ang_99]

Their best brand is only about 1% of sales.


Go figure.

 

[Mercor]

Quote from LuckyGirl:

A friend of mine bought $80,000 worth of GM stock at $19. Obviously he's an armchair dabbler. After getting pummelled on Thursday, he asked me if he should sell. I can't trade my way out of a paper bag yet, advice from me is the kiss of death, but I feel badly for him.

So obviously he should sell, but should he hold on for more of a bounce? $9 too ambitious? Or set a trailing stop loss at 10%? Would appreciate your help.

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.

 

[FanOfFridays]

Quote from Mercor:
I am really amazed you would conclude I was talking about selling products in those states...lol.

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.

 

[Mercor]

Quote from traderNik:

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.

 

[NoProblem]

Quote from Mercor:

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

 

[Mercor]

Quote from LuckyGirl:

A friend of mine bought $80,000 worth of GM stock at $19. Obviously he's an armchair dabbler. After getting pummelled on Thursday, he asked me if he should sell. I can't trade my way out of a paper bag yet, advice from me is the kiss of death, but I feel badly for him.

So obviously he should sell, but should he hold on for more of a bounce? $9 too ambitious? Or set a trailing stop loss at 10%? Would appreciate your help.

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