What's the consensus here at FR on buying GM stock, which ended the day at $3.09 a share? Is it a bargain, or is it an exercise in flushing money down the terlet?
don’t, even if they survive the current shareholds will likely get nothing.
if you want to speculate on gm recovering, try to find a supplier that is viable without them but will do better if gm survives.
My experience with Amercian cars has been largely positive—but (oddly) many patriotic FReepers seem to hate American cars with a passion. Its really a sad state of affairs. I don’t think much of the country has a clear idea of how big a hole it will blow in the economy if the Big Three fade away.
Personally I think the Dems effort to save the auto industry is just them going through the motions. In the end, they will do nothing. The Greens (whose opinions really could with them) would luv to see those ugly auto plants go away. The Union leadership probably knows this and is in on the charade.
Buying GM stock is a gamble. If GM goes bankrupt the stockholder probably gets zero. WSJ editorial opinion seems more but not totally on the side of Chapter 11 bankruptcy as the best for america. Bush says Chapter 11. What will Obama say. He was a community otganizer. What do such persons do? Organize groups in the community to get specials from the government. Now it looks like big business groups need the same. Wall street has got theirs. Can GM and UAW similiarly qualify? If Obama says yes the stock buyer might triple his $3. Gaze into your crystal ball, but be prepared to lose all your bet.
For many years I was a Ford guy. Owned two different F-150s, an Escort wagon, and a Winstar minivan. The 1990 F-150 was great, plain, straight 6 cyl 5 spd manual, 4x2 regular cab, 8 ft bed. Just a plain old truck. I had that for 6 or 7 years. The Escort my wife drove wasn't bad, wasn't great. The last F-150 (1997 4x4 supercab) and the Winstar were disasters. They didn't nickel and dime us, it was $300, $500, $800... at a pop. I'll never own a Ford again, period. Not even if they gave me one free - I couldn't afford the maintenance on it, and I need reliable vehicles to get me and the wife to our jobs. My wife now drives a new Sierra 1500 4x4 crew cab. Funny thing, the dealers were really willing to deal on them back when gas was 3.40 a gal or more. ;-) But hey, her commute is under 3 mi each way, why not something big, comfortable, and safe?
There is a reason the stock is next to worthless. The company is insolvent. If you have an itchy wallet, blow the money on lottery tickets. The odds are better.