should i buy some GM stock

[Ken448 10+ year member]

...and yes, I have considered putting about 10k into GM when the time is right.....

 

[04silverz 10+ year member]

Shareholders will be wiped out if they go bankrupt.
They would reissue new stock in a reorganization, your stock would be toilet paper.

see. theres real info. i didnt know that. now i would wait til they went bankrupt.

 

[Lugnutz 10+ year member]

dude i aint talking about buying it today and selling it in december.
i mean buying it and holding on to taht shit for years and years. if i buy it at 3 bucks a share and in 10 years its 9 a share. ive tripled my money by doing nothing. really the only thing holding me back is i could only do like 1 or 2 grand of stock. which even if it tripled my money would only be 6 grand and could take years and years. if i had like 20 grand, i would do it.

put it this way, if i had ten grand, this idea would more likely work out than all the suckers who bought into the world series of poker this year. i mean 666 players took mnoey home out of over 6 grand.

If GM files bankruptcy, you will most certainly lose your investment. When they reorganize the company, you have no say as a shareholder. They pay off their creditors first. They could ask you to give back your shares and reissue you new shares in the reorganized company at less value. If GM files chapter 7, you are SOL then.

 

[lilmaniac2 5,000+ posts]

If the government bails them out like I expect them to it would be a good move. If the government doens't bail them out you may as well dump your cash out in a dumpster. Also I wouldn't buy them for the long term, the days of the big 3 automakers, in there current form are done. Union workers drive there costs up and make there prices far from being competitive. If I had the balls I would buy like 100g stock in them, and when they gov't gives them there money quadruple my money...

 

[Lugnutz 10+ year member]

The union isn't ruining them, the UAW didn't decrease sales by 40%.

 

[Rich B 5,000+ posts]

see. theres real info. i didnt know that. now i would wait til they went bankrupt.

Yeah, be careful.

Theres stories out in the news that says there might not be a GM bailout until January when the next Congress takes office.

Not sure if they can survive until then.

Chances Dwindle on Bailout Plan for Automakers

Published: November 13, 2008

WASHINGTON — The prospects of a government rescue for the foundering American automakers dwindled Thursday as Democratic Congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck session next week.

At the same time, hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated. Democratic leaders have been calling for a package that would include help for the auto companies as well as new spending on public works projects, an extension of jobless benefits, increased food stamps and aid to states for rising Medicaid expenses.

http://www.nytimes.com/2008/11/14/business/14auto.html?_r=1&ei=5043&adxnnl=1&partner=EXCITE&adxnnlx=1226638597-Dv4L+2K6R0oh0Py51l/SEw&oref=slogin

 

[Ken448 10+ year member]

funny story:

My boss lives in Chicago, called me 3 weeks ago.... "I just bought GM stock at $7.40 a share.. I wouldn't recommend you do the same, but I feel it was a good investment" The next 3 days, it dropped to the high $3's.. I dont know what he dumped in, but I can prolly tell you it was a good sum.. So me (being the smart@ss I am) gave him a call a few days after and asked for some market tips //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif He politely told me to STFU! My boss rules!

 

[funkyab 10+ year member]

i agree. the auto makers in the u.s. are in trouble like any other suffering business. Because profits go down they loose stock value.

I think one of the HUGE problems with the U.S. auto market is overall quality and poor engineering. There are reasons that manufactures such as toyota and honda consistently have better sales globally and higher profits.

You can go almost anywhere in the world and see versions of the toyots and hondas we are used to seeing here but RARELY see American made cars being used daily. This is so sad. The Auto industry in the USA for many years was the industry to be emulated and envied. Now it seems that the build quality and engineering tolerances are incredibly substandard to our competitors and this is showing in the markets and in the profit margins of these companies. I do not think a company that has made choices to build poor automobiles (especially being VERY aware of the competitors they are up against) should get a dime of federal bailout money aside from what it might take to support their employees that might otherwise be let go due to their "restructuring".

On a side note, speaking of quality, I recently read a statistic that BMW spends the same amount of money on quality control and engineering on ONE model of their many models that GM spends on their ENTIRE LINE of passenger vehicles.

WTF??

 

[04silverz 10+ year member]

If the government bails them out like I expect them to it would be a good move. If the government doens't bail them out you may as well dump your cash out in a dumpster. Also I wouldn't buy them for the long term, the days of the big 3 automakers, in there current form are done. Union workers drive there costs up and make there prices far from being competitive. If I had the balls I would buy like 100g stock in them, and when they gov't gives them there money quadruple my money...

if i had 100 grand disposable money, i would def buy 10 grand.

 

[lilmaniac2 5,000+ posts]

The union isn't ruining them, the UAW didn't decrease sales by 40%.

so UAW didn't drive their labor cost up at rediculously high rates?

They can't compete on price because of higher labor prices, they can't compete on features because of the labor prices. Same thing for the airlines, in there current form they won't work.

The days of the Union are over.

 

[Ken448 10+ year member]

The union isn't ruining them, the UAW didn't decrease sales by 40%.

Their ridiculously inflated wages and retirement plans didn't help the matter much....... On average I am in 3 or 4 different auto plants on a given week, and you CANT tell me that putting seats, wheels, whatever on a car or truck is worth $28/hr... Yes, the work is tedious, and Id die doing such a mindless job, but the good old days have come and gone for those guys (and girls). Look at what American Axle pulled off... MASSIVE wage re-alignment! Look for it on a much larger scale coming to an auto plant near you. n00bs are being hired at no more than $14/hr now.

 

[04silverz 10+ year member]

I think one of the HUGE problems with the U.S. auto market is overall quality and poor engineering. There are reasons that manufactures such as toyota and honda consistently have better sales globally and higher profits.

styling too. i mean to me, a g35 or g37 looks sick. pretty much no domestic car for that price looks as good. i mean they not only are poor quality, but they look it. even on "high end" caddys. its like they just think that by throwing chrome accents on everything that it makes it look good. the new escalade looks gross.

and i am a die hard chevy man.

 

[lilmaniac2 5,000+ posts]

Their ridiculously inflated wages and retirement plans didn't help the matter much....... On average I am in 3 or 4 different auto plants on a given week, and you CANT tell me that putting seats, wheels, whatever on a car or truck is worth $28/hr... Yes, the work is tedious, and Id die doing such a mindless job, but the good old days have come and gone for those guys (and girls). Look at what American Axle pulled off... MASSIVE wage re-alignment! Look for it on a much larger scale coming to an auto plant near you. n00bs are being hired at no more than $14/hr now.

Truf

 

[04silverz 10+ year member]

Their ridiculously inflated wages and retirement plans didn't help the matter much....... On average I am in 3 or 4 different auto plants on a given week, and you CANT tell me that putting seats, wheels, whatever on a car or truck is worth $28/hr... Yes, the work is tedious, and Id die doing such a mindless job, but the good old days have come and gone for those guys (and girls). Look at what American Axle pulled off... MASSIVE wage re-alignment! Look for it on a much larger scale coming to an auto plant near you. n00bs are being hired at no more than $14/hr now.

i dot know, i'd like my steering wheel to be installed correctly.

on the filp side, i am looking at possibly pursuing aviation mechanic as a career and on average you make 25/hr. i know it depends on who you work for and where, but i mean, the responsibility you have is huge. i think a mech deserves more money than thtat.

 

[Lugnutz 10+ year member]

Their ridiculously inflated wages and retirement plans didn't help the matter much....... On average I am in 3 or 4 different auto plants on a given week, and you CANT tell me that putting seats, wheels, whatever on a car or truck is worth $28/hr... Yes, the work is tedious, and Id die doing such a mindless job, but the good old days have come and gone for those guys (and girls). Look at what American Axle pulled off... MASSIVE wage re-alignment! Look for it on a much larger scale coming to an auto plant near you. n00bs are being hired at no more than $14/hr now.

Inflated retirement plans? The UAW has conceded a lot on pensions. What is the UAW to do? Tell the people they represented for 30 years that the pensions we fought for are going to be no more? If they conceded everything they would be useless.