GM. Buy?

gm buy

You may recall that we gave Jim Cramer shit for voting for GM’s stock before he voted against it. Yesterday, while listening to my local talk radio financial advice show… sorry, what was I saying? Right. I’m awake. I’m awake. A caller asked if they should buy GM stock, ’cause you know it used to be a 40 and now it was at 4 and wow such a deal. The expert said Hell no; GM was going to be broken-up and/or go bust. As the Autoextremist might say, that’s a barmitzvah-sized coffee urn of not good. When TTAC started the Death Watch, the experts were singing a different tune. And the General’s public knew nothing– as in zilch– about its troubles. Now that the financial crisis has hit the mainstream press, GM’s distress is an open secret. How long before the possibility of C11 affects new car sales? Maybe not now, but soon. Meanwhile, there are plenty of people either ignorant or willfully ignorant of what’s going down at GM (hint: GM). Here’s a comment from Al “Who He?” Diaz over (“Invest Smarter Together). Oh, Al reckons GM’s a buy. “I have confidence GM will make necessary adjustments to ensure the merger with Chrysler goes through by the end of October; ensuing cuts WRT Plants and other hourly wage earners should help the company get back on its feet and in time the fruits of their labor will become apparent. I don’t see GM going out of business anytime soon.” But when he does…

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4 of 17 comments
  • John R John R on Oct 20, 2008

    @psarhjinian: GM wants to be a botique automaker. That's an interesting point of view. When you think about that it does make some sense. At least when it comes to cars. The Corvette variants and the CTS are the best cars GM currently makes, but when it comes to bread and butter autos they suck wind. Who here would really take a Cobalt over a Mazda 3? The Pontiac G8 is a thin margin and the Solstice/Sky is a good car, but not good enough to get enough people out of Zs and Miatas. And its only just recently (new Malibu) that they've made a truly competitive car in the mid-size segment...but only if you either waited half a year for the 6-speed to be coupled to the 4-cylinder or you went ahead and purchased the V6. They want to be a boutique product maker that sells perfectly engineered examples to select customers that worship their marketing and engineering brilliance. Read: SUV/Truck owners. Perhaps after C11 they'll be pared down to a company that sells trucks/SUVs and the G8, Solstice/Sky, CTS, Malibu and Corvette under one brand.

  • Morea Morea on Oct 20, 2008
    They want to be a [s]boutique[/s] product maker that sells perfectly engineered examples to select customers that worship their marketing and engineering brilliance. As amended, doesn't this simply describe RF's branding concept. Take Honda for example, it's a maker of fuel efficient, high reliability cars that that faithful worship as great examples of marketing and engineering (and not without reason).

  • ERJR ERJR on Oct 20, 2008

    As long as the current management stays, GM is no buy. My thoughts on this supposed merger are, could it be this is to ensure maximum government funding after they go belly up? After all, GM would have about 40% of the market?

  • Rx8totheendoftime Rx8totheendoftime on Oct 20, 2008

    bought chrysler in 1981 and made a lot of money, almost overnight...started buying GM (among other stocks) in August and have continued to buy until this week, since I am not yet fully invested and will continue for as long as this market lasts...I am, of course, part of the conspiracy that Buickman talks about (baruch ha'shem) but it is a conspiracy of intelligent people only (of all races and religions) a conspiracy that Buickman was excluded from at birth.