Posting of Real-Time Trades and a VERY SIMPLE technique that makes TRADING SIMPLE!!!
Monday, July 21, 2008
GM shorts
Not till around $12.50 which would bring the $12.35 into play. I haven't seen any good news from them??? You think single digits again??? If so i'll hold these long-term.
WSJ: GM Dealers Buying Stock In Co To Show Confidence
. By John D. Stoll Of THE WALL STREET JOURNAL
DETROIT (Dow Jones)--Several General Motors Corp. (GM) dealers are buying stock in the company as way to show support for the auto maker's embattled management team, and to take advantage of what they see as a good value.
GM's 20-member dealer council snapped up $1.1 million of the auto maker's stock last week, or 107,000 shares, Duane Paddock, one of the heads of the organization and the owner of Paddock Chevrolet in Kenmore, N.Y, said. Paddock said the shares were purchased at an average price of $9.88, meaning the group has already netted a strong return.
GM shares recently traded at $13, down 1.4% from Friday's closing price after trading as high as $13.72 earlier Monday. The stock has rallied from five-decade lows in recent sessions as investors digest the auto maker's new plan to raise $15 billion in liquidity through 2009 by cutting costs, raising fresh financing and selling assets.
(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)
The move by dealers to buy stock was first reported by industry trade publication Automotive News.
Paddock, speaking during a Monday morning phone interview, said the dealer council decided to buy the stock because "GM has a solid leadership team in North America," competitive products and an attractive position in the heated fuel-economy race among leading auto makers. He also said GM stock was "undervalued."
Other dealers have also been buying GM recently to echo the support of the dealer council, Paddock said. He has received more than 80 emails from GM dealers since the move was made public, he said, and many of the dealers disclosed plans to purchase the stock.
John Bergstrom, whose Bergstrom Automotive in Wisconsin is among the larger GM dealers in the nation, said he also has been buying GM shares even though he is not on the council. He said the council's move "brought life" to a broader stock-purchasing movement among the retailers.
"We want to give a signal to people that we support General Motors management team," Bergstrom said. "We also think it's a good value, and we want to help."
The dealer council started discussing the plan on July 10, a few days after The Wall Street Journal first reported that severe cost cuts were going to be made at GM. In addition, GM was reported to be considering selling or shedding additional brands, or individual vehicle nameplates.
GM has since said that brands other than Hummer are not currently on the chopping block. It has, nevertheless, seriously considered what options it has in relation to the seven brands it sells in North America, excluding Hummer. GM commenced a strategic review of Hummer in June. Chief Operating Officer Fritz Henderson said last week the company is looking to slim down the number individual models it sells in North America.
Last Tuesday, GM formalized a plan to shore up liquidity over the next 18 months as it faces a downturn in North America that threatens to drain the company's cash reserves. Under the plan, GM will cut 20% of its white-collar costs in North America, or $1.5 billion. That will reduce in about a 15% reduction in the North American white-collar ranks, people familiar with the plan say.
GM hopes to secure $5 billion through asset sales and by pledging other assets as collateral for new loans.
Paddock said the dealers were not aware of the new liquidity plans until they were announced.
2 comments:
WSJ: GM Dealers Buying Stock In Co To Show Confidence
.
By John D. Stoll
Of THE WALL STREET JOURNAL
DETROIT (Dow Jones)--Several General Motors Corp. (GM) dealers are buying stock in the company as way to show support for the auto maker's embattled management team, and to take advantage of what they see as a good value.
GM's 20-member dealer council snapped up $1.1 million of the auto maker's stock last week, or 107,000 shares, Duane Paddock, one of the heads of the organization and the owner of Paddock Chevrolet in Kenmore, N.Y, said. Paddock said the shares were purchased at an average price of $9.88, meaning the group has already netted a strong return.
GM shares recently traded at $13, down 1.4% from Friday's closing price after trading as high as $13.72 earlier Monday. The stock has rallied from five-decade lows in recent sessions as investors digest the auto maker's new plan to raise $15 billion in liquidity through 2009 by cutting costs, raising fresh financing and selling assets.
(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)
The move by dealers to buy stock was first reported by industry trade publication Automotive News.
Paddock, speaking during a Monday morning phone interview, said the dealer council decided to buy the stock because "GM has a solid leadership team in North America," competitive products and an attractive position in the heated fuel-economy race among leading auto makers. He also said GM stock was "undervalued."
Other dealers have also been buying GM recently to echo the support of the dealer council, Paddock said. He has received more than 80 emails from GM dealers since the move was made public, he said, and many of the dealers disclosed plans to purchase the stock.
John Bergstrom, whose Bergstrom Automotive in Wisconsin is among the larger GM dealers in the nation, said he also has been buying GM shares even though he is not on the council. He said the council's move "brought life" to a broader stock-purchasing movement among the retailers.
"We want to give a signal to people that we support General Motors management team," Bergstrom said. "We also think it's a good value, and we want to help."
The dealer council started discussing the plan on July 10, a few days after The Wall Street Journal first reported that severe cost cuts were going to be made at GM. In addition, GM was reported to be considering selling or shedding additional brands, or individual vehicle nameplates.
GM has since said that brands other than Hummer are not currently on the chopping block. It has, nevertheless, seriously considered what options it has in relation to the seven brands it sells in North America, excluding Hummer. GM commenced a strategic review of Hummer in June. Chief Operating Officer Fritz Henderson said last week the company is looking to slim down the number individual models it sells in North America.
Last Tuesday, GM formalized a plan to shore up liquidity over the next 18 months as it faces a downturn in North America that threatens to drain the company's cash reserves. Under the plan, GM will cut 20% of its white-collar costs in North America, or $1.5 billion. That will reduce in about a 15% reduction in the North American white-collar ranks, people familiar with the plan say.
GM hopes to secure $5 billion through asset sales and by pledging other assets as collateral for new loans.
Paddock said the dealers were not aware of the new liquidity plans until they were announced.
Yes, they are a short to 10 dollar stock IMO. Below 10 it gets dicey, 'cause bounces will be hard.
I'm planning on running my 13 to at least 11.5 and my 12.3 to 10.5/10 (depending how things look)
Post a Comment