I love stocks!!! My sole reason for going to school is so I can learn as much as possible about the financial field. Anyway, alot of professors told me that GM will take a long time to rebound especially while they are trying to restructure. The reason for cutting the dividend is that they don't have money to pay it out to shareholders. A company pays a dividend when it has good earnings and they decide to give back to the stockholders.

PS. Over the last 50 years, stocks that DO NOT pay dividends have a better capital gains record over stocks that pay them. When investing you should not only be basing your decisions on Income Stocks (dividend paying stocks) but should diversify into many different playing fields. I actually like growth stocks but they tend to be high risk....high return as well. For example: In September, I bought 1000 shares of GGB at 13.50 and now (4 months later) they are at 20.70. Another good one that might take off is HW (headwaters).....very interesting company that turns COAL into liquid fuel and they have alot of cash on their books. (cash is king).

This is the sole reason why I drive a crappy car while I'm in college....I used to have a brand new GTI VR6 and a very good friend that works for Merrill Lynch told me to sell it and invest every penny in the stock market. Anyway, sold the car for close to 20,000 and the money has more than tripled in 3 years (Google helped alot and my friend always calls me when something good is about to happen ) It worked out well since that same care would probably be worth 10k right now. Moral of the story: You don't need a nice car when you are in college.

I'll stop my rambling for now.