Anybody buying any of these stocks on sale?

[Andrew/USPWR]

I just noticed GM down to $10.81 and Ford at $4.50.

These have got to be great for the long run. IMO

[RX VIPER]

I'd still "steer" away from GM at that price right now.

Have you seen GE lately? It was down to 26 y-day. I just bought a call option on it.

[pteam]

hmm lets see GM is down 70% over 1 year, over 5 years also down 70%, in fact since 1962 they are not even up 1%, what makes you think this is a good stock to own? The lowly s&p is up over 1500% over that time.

ford is down 50% over 1 year, still negative returns over 5 whole years at negative 60%...

and with gas prices scaring new buyers, sales at all time lows and no end in sight, why would you want to own these stocks, so you can sit on them for 5 more years and make 0% or lose money?

[Bobpantax]

Originally Posted by pteam

hmm lets see GM is down 70% over 1 year, over 5 years also down 70%, in fact since 1962 they are not even up 1%, what makes you think this is a good stock to own? The lowly s&p is up over 1500% over that time.

ford is down 50% over 1 year, still negative returns over 5 whole years at negative 60%...

and with gas prices scaring new buyers, sales at all time lows and no end in sight, why would you want to own these stocks, so you can sit on them for 5 more years and make 0% or lose money?

Good post. Ford recently announced a revision of its forward forecast. There was alot of blood in the water and more to come. The 2009 F150, their bread and butter vehicle, has been delayed. GM is in even worse shape. Scary times in the automotive industry. I do not think that it is at all clear that we can assume that the big three will survive in their current configuration. They all guessed wrong on their product mix and they are paying dearly for it.

[Stretch]

Originally Posted by RX VIPER

Have you seen GE lately? It was down to 26 y-day. I just bought a call option on it.

I've been watching that one daily and wondering if I should pick some up.

[Andrew/USPWR]

Originally Posted by pteam

hmm lets see GM is down 70% over 1 year, over 5 years also down 70%, in fact since 1962 they are not even up 1%, what makes you think this is a good stock to own? The lowly s&p is up over 1500% over that time.

ford is down 50% over 1 year, still negative returns over 5 whole years at negative 60%...

and with gas prices scaring new buyers, sales at all time lows and no end in sight, why would you want to own these stocks, so you can sit on them for 5 more years and make 0% or lose money?

Just some stock at 53wk lows. What have you got to add? Anything?


These are stocks I roll on line. Buy some when their low and put a sell price on them for when they go back up. GM was at $40 last Oct.

I do own some GE also.

Remember when Chrysler was $3 back in the 80's, before WE bailed them out? Who would of bought them back then?

[FLX109]

Originally Posted by Andrew/USPWR

Just some stock at 53wk lows. What have you got to add? Anything?


These are stocks I roll on line. Buy some when their low and put a sell price on them for when they go back up. GM was at $40 last Oct.

I do own some GE also.

Remember when Chrysler was $3 back in the 80's, before WE bailed them out? Who would of bought them back then?

AS said here, remember chrysler in the 80's if the goverment can help them why not GM, I personally think it would be a good move to buy while down, you know they will all be creating somthing to market, they have the facilities to do something.
I say Buy, I did it in the 80's and did well.


FLX109

[FE 065]

Plus GM's still paying $1/sh dividend per year. Good interest too boot.

Hard to predict the future any more, but once investors get used to high gas prices, AND a new President on the way, things could ramp upwards.

Europe's had high gas prices for eons. Has that hurt stock prices of Euro car manuf?

[Blade Runner]

Chrysler is laying off 2400 of the 3500 jobs here in Fenton Missouri plant. Bad time for auto makers.

[Bobpantax]

Read carefully below.


Reuters
Merrill says GM bankruptcy possible
Wednesday July 2, 12:42 pm ET
By Soyoung Kim
DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch said.
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Other analysts have suggested GM, whose shares fell to a new 54-year low on Wednesday, needs to raise funds to ride out the downturn in the U.S. auto market through 2009.
But Merrill's estimate of GM's financing needs is the highest yet. It also carried the most stark warning of the bankruptcy risk for the largest U.S. automaker.
GM declined to comment directly on the Merrill Lynch report but it believes it has sufficient liquidity for 2008 despite lower volumes and could take more steps to cut costs if sales conditions worsen.
"If conditions continue to deteriorate, we would consider other operating measures," GM spokeswoman Renee Rashid-Merem told Reuters.
Merrill Lynch analyst John Murphy cut GM to "underperform" from "buy" and lowered his price target for the largest U.S. automaker to $7 from $28. Shares fell as much as 11 percent to $10.50 in Wednesday's trading in the New York Stock Exchange. The cost to insure GM's debt rose.
Murphy also lowered his forecast for 2008 U.S. industry-wide light vehicle sales for the third time this year and said the recent drastic decline in sales would likely to continue through 2009.
Murphy forecasts light vehicle sales of 14.3 million units this year and 14 million units for next year. That compares with 16.15 million units in 2007 and is sharply lower than the current forecast of most major automakers, including GM.
"The recent extreme deterioration in volume and mix is driving much higher cash burn and eroding GM's cash position," Murphy said. "We believe $15 billion is necessary because there is downside risk to our current estimates and a greater cushion is essential."
Any capital GM raises has the potential to dilute equity if it's done through convertible offering or the issuance of additional equity, both possibilities analysts have raised.
DEEPER DOWNTURN AHEAD?
The deepening concerns about the sales outlook for GM come after a June sales report that showed industry-wide auto sales dropping to a 15-year low.
GM's own sales fell by a narrower-than-expected 8 percent on an adjusted basis after the automaker offered zero-percent financing for six years.
But Deutsche Bank analyst Rod Lache said GM could see a "payback" from its June sale in coming months, with its U.S. market share dropping back below 20 percent from 22 percent in June as sales fall back.
Several other Wall Street banks including Citigroup also downgraded automakers and parts suppliers on Wednesday and lowered their outlook for U.S. auto sales this year and next.
Citigroup analyst Itay Michaeli lowered his forecast for 2008 U.S. vehicle sales to 14.5 million units from 15 million, saying plummeting resale values of trucks and SUVs was crimping demand already hurt by weak housing and tighter credit.
Itay said a full recovery in the U.S. auto market would begin only in 2010 or 2011.
Michaeli said GM has to weather the current downturn with considerably less backup liquidity than smaller rival Ford Motor Co (NYSE:F - News), which tapped the leveraged loan market at its peak in late 2006 to raise $23 billion.
"While we do not believe GM is facing an immediate cash crunch, the urgency to shore up liquidity to navigate through a difficult 2008-2009 has risen significantly in recent months," Michaeli said. He cut GM's target price to $14 from $21.
Industry tracking firm Global Insight cut its forecast for the annualized sales rate in July to 14.4 million units and cut its 2009 forecast to 14.2 million units in sales, citing the risk of higher average oil prices in the months ahead.
Credit option contracts on the Chicago Board Options Exchange that would pay out if GM or Ford default before September 2012 ticked higher. The contracts, which remain lightly traded, point to a roughly 73-percent default risk for GM and a 69-percent risk for Ford over that period.
(Reporting by Soyoung Kim; Editing by Derek Caney)

[pteam]

Originally Posted by Andrew/USPWR

Just some stock at 53wk lows. What have you got to add? Anything?


These are stocks I roll on line. Buy some when their low and put a sell price on them for when they go back up. GM was at $40 last Oct.

I do own some GE also.

Remember when Chrysler was $3 back in the 80's, before WE bailed them out? Who would of bought them back then?

What on earth do you mean what have I got to add? GM is down 70% over 1 year, and down 70% over 5 years.. Bankruptcy possible... you think this is a good investment? Over the last 50 years and GM is still NEGATIVE?!?!?!?! you think this is a good investment???? It doesnt even make sense? Car buyers confidence is at an all time low, people aren't buying any SUVs or anything close to a gas guzzler.. Sure if you think a company that has a negative return over 1 year , 5 years, and 50 years, is a good investment by all means invest your money in it, it aint my money... I'm just trying to help you. There are much much much better stocks out there with ALOT more potential. Everything is cheap now, not just GM and Ford.

[pteam]

Oh hey look GM was down 15.06% today! Just think you coulda bought GM yesterday when you thought it was such a good deal and lost 15% in one day! What a deal!!!

Headline on the front of finance.yahoo.com right now - GM shares fall below $10 for first time since 1954. Not a bad investment, invest for 50+ years and make nothing...

Oh but Ford looks like a much better deal! Ford only lost 7.43% today!!!

[osuaero]

Have to agree with "pteam", the US auto manufacturers are probably not a good bet at this time. They will probably struggle even when the market starts to turn. You could probably throw a dart at the WSJ and come up with a security that will outpace GM over the next few years. There is a ton of cheap stuff out there right now, or at least what we think is cheap at this time. From a technical standpoint, the pain is not over. Watch out for falling knives, they can kill you, or at least your brokerage account. Wait for a true bottom to be signaled.

Ultimately, the financials will lead the market higher.

This is obviously just my opinion, and we all know what they say about those...

[Sellshomesdrivesviper]

I don't know whats a worse stock purchase, airlines or autos.

[Lee00blacksilverGTS]

Originally Posted by osuaero

Have to agree with "pteam", the US auto manufacturers are probably not a good bet at this time. They will probably struggle even when the market starts to turn. You could probably throw a dart at the WSJ and come up with a security that will outpace GM over the next few years. There is a ton of cheap stuff out there right now, or at least what we think is cheap at this time. From a technical standpoint, the pain is not over. Watch out for falling knives, they can kill you, or at least your brokerage account. Wait for a true bottom to be signaled.

Ultimately, the financials will lead the market higher.

This is obviously just my opinion, and we all know what they say about those...

Financials will lead?