Gm
 

Let me start by saying that I had a General Motors car as my first "new" car in 1990. I will NEVER buy another GM product for as long as I live.

Now.

The stock is at $24ish. Look at the market cap and the 8% dividend return. I don't want to hear the bullcrap that they are going to cut the div. They have been saying that since 2002, and it hasn't happened yet.

I know they are set from some hard times, but don't you think it is a friggin' steal at this price? Sort of like Chrysler back in the Lee years?

Just wondering.

Pete

Death of a giant.

So what are you saying? GM is going to be gone, as in no more?

No way. As much as I think there is little room for them left anymore in their current state. I can't believe that the name plate and some of their models will just go away. Especially when you look at it Internationally.

When you look at Market Cap and then you look at Google's market cap, well, I mean, come on now.

GM is still viable. Just not the way they are now.

What makes you say "death of a giant" -- or are you just being silly?

THe most reliable cars I have ever owned have been GM.........

I've owned 10....and would have bought every one of them again. Something I can't say about most other brands.

i hate to say this but american cars have lost their quality sure i wasnt around in the 50-60's when the cars were the best but after 71 the cars of all american car companies just sucked.. my moms equinox made in canada so its not american and its been in the shop 12 times for stupid stuff my step dads aveo made in korea is just shody leaves in the air vents.. how they get in their i dont know and various other things.. and what really bothers me is gm's whoel sharing of models. the vue the euqinox and the pontiac version .. see i dont even know the name of it because its soo generic. i rember watching history channel on muscle cars and gm pontiac buick and the rest within gm would compete for the best.. now they just gave up .. i will buy a nice benz when i get out of college i nice diesel because i know america cars will be crud

Well the platform sharing and such is obviously a huge cost cutting factor. But, the only GM I've ever owned was a 99 Bravada Platinum Edition. It was a nice truck until the wiring began to get shoddy. The alternator and battery went after it sat overnight and I replaced that and continued tracking down a short. It got to the point where I found it to be in the rear defroster so I disconnected it. I had picked up the CLK earlier this year and decided I would rid myself of the SUV (that proved smart after gas soared and I was only getting 15.8 mpg). I'm not surprised by GM's apparent downfall, it happens when your product is consistently cheap. The mrs drives a Sunfire now and boy does that thing sound like its going to fall apart. I drove a CTS the other day that was less than a year old, and when you shut the door it was tinny and rattled a bit while sounding like it might fall off. Compare that to the tank 124 with its beautiful thud sound. So far the CLK has been pretty good, though it doesn't see much usage in the bad weather we've had for most of the fall. I still don't think I'll be a MB guy for the long haul (I've been a Mopar guy for years), in terms of new car purchases. Reliability would have to improve big time for me to consider it. That, and I see more and more of them on the road and now you don't feel as unique. I'd rather drive the 124 than the CLK, at least I won't see it as often on the road. But hey, I won't mourn for GM since I hate the idea of the "Hummer"...which isn't really a Hummer...though I don't think they will disappear. A company as large as GM will somehow manage to stick around no matter how bad things get. Maybe they can sell Saab and give it back some dignity.

Well lets see if China entering our automobile market will give GM some trouble.

It's not so much that GM quality has fallen, insomuch as Asian manufacturers raised the bar to the point that status quo is no longer acceptable.

absent some really big news I wouldn't touch them. They are hemorrhaging money, have accounting problems, are in a lousy sector.

I have owned my GM products. Only one of them would I say was 'bad'. I suppose that I have been one of the fortunate ones as GM products have been pretty good for me. In 1990 I bought a brand new Mercury Cougar......the last Ford product for me.

Check JD Power. The Cadillac Sigma platform (CTS, SRX, STS) are the highest quality cars you can buy and the DTS will be on the list as well. The Chevrolet Impala that was just replaced after 5 years scored better on 5 year durability tests the the Toyota Camery.

Also don't stereotype the Japs. Toyota and Honda are the only 2 building diecent cars, the rest are junk in quaity terms. And please don't call a Lexus a luxery car, they only sell 1/3 of their vehicles in the premium segment are all they are is glorified Toyotas (the Solara and SC are a perfect example)

General Motors is not about to go under. Yes they are not in the best shape but your talking about the second largest company in the world (largest in automotive), they have enough in the bank to support operations for years.

I love Mercedes, I own 4 of them, but don't confuse the classics with the new stuff. I think MB has some of the nicest looking cars out there but the worst in quality and durability. (S-Class #1, BMW 7 #2, E-Class #3)

Purchase assets at a discount and you receive immediate equity. GM is giant bleeding to death from a million paper cuts.

I just read the target price is inthe teens... around 16.

I call Bull*****. Look at the market cap figures. This is a company ripe for a turn-around NOT the grave.

Funny to hear me talk like that since I hate GM!

Man I really want to buy the stock.

IMHO you and GM would be the perfect match for each other - If I were you I'd sell my house and bet the farm on a GM turnaround.

Probably not the best thing to do - at least very much of, but if you must you can write the Dec 20 puts for a $1.10 right now. If it continues to fall - likely - you'll pay 120 and earn the 1.10 for an effective 18.90 and if it holds above 120 you keep the 1.10 I like writing calls to take me out if things get overbought and to write the puts to get back in. There's better ways to go - if it's just income write the EENC Dec 22.50 puts for 1.75 - you'll get the stock and earn a .17 cent dividend every month. If you do that understand that EENC's reserves are only good for about seven years though.