trinacriabob

GM stock trading over $ 40 today !

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It's been a long time since we've seen this. Not long ago, I remember the $ 18.60 +/- stock price. It takes money to make money and one who has spare cash laying around could have bought a chunk of shares, sold them today, and paid Bush's smaller capital gains tax on these (it won't be 15% with the next administration...LOL). In fact, that's what a lot of rich investors have done...they buy strong companies in a down cycle and wait for the upturn.

I bought several hundred at $ 21 and sold them at $ 37. Could have done better, but, in less than 2 years, not bad, I guess.

Any thoughts on GM stock? Do you see it doing a meteoric rise like Boeing?

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when it was at still below $20... i said to my dad or maybe my boss.. i bet it'll hit $40 in a year or so.... i wasn't far off.

i bet it'll hit $50 before '10MY vehicles come out. the volt, Camaro, "impala", more hybrids...

i wish i had a stock account back when it was in the teens... but alass...i tried once and gave up, i'm stupid. LOL

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Yes, I too was one of the dreamers back in the $18 days, but I didn't have the money then...still don't. But you don't just need money, you need a pair of huevos too.

I think the stock still has some legs and will hit $50 in the next 6-12 months. Don't forget that the best of GM's new product isn't even on the market yet and they're already bucking industry sales trends. The CTS just started to sell, the Malibu hasn't arrived yet, Chevy Lambda, Camaro, Astra etc. They still have a lot of profit growth potential in Saturn that is starting to catch on as well as Buick and Pontiac that have yet to get their brand overhauls and don't forget about the upcoming new models for Hummer that will likely provide a large number of conquest sales. And further, they still have yet to reap the cost benefits of a fully instituted global Epsilon, Delta, Zeta, Gamma, etc.

Mark my words $50 within the next 12 months, possibly $55 by this time next year and if they can get the Volt to market on schedule and without major flaws, they'll be well over $60 in 2 years. In addition, these things happen in swings. Much like GM was undervalued at $18, they will become overvalued at some point which means that even if they don't add all the value I've mentioned, they'll still be able to ride the current momentum for a while.

P.S. Doesn't Kirk Kerkorian look silly now?

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I predict $50 before the year ends. Or at least at the start of next year.

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It will hit 50 in a matter of time, but how much higher it goes will depend whether we end up in a recession or not.....

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General Motors stock soars as UAW accepts labor pact
Posted Image
Sharon Terlep | Link to Original Article @ The Detroit News


General Motors Corp. shares hit a more than two-year high today on news that United Auto Workers ratified a new, four-year labor pact with the automaker.

GM stock was trading at $40 a share shortly before noon, up about 5 percent for the day and nearly 30 percent since Jan. 1. Shares are at their highest since the week of Jan. 3, 2005.

Wall Street has been watching labor talks in Detroit closely. GM got from the union what investors wanted most: a landmark deal that shifts $50 billion in retiree obligations to the union in the form of a company-financed trust.

Ratification of the deal, which was reached Sept. 26 following a two-day strike, was expected but not certain until Wednesday.

The deal was approved by 66 percent of GM production workers and 64 percent of skilled trades workers, according to the union said. The contract takes effect on Monday.

GM still must get federal regulatory approval to create the trust, called a voluntary employees' beneficiary association, or VEBA.

GM must file a report with the Securities and Exchange Commission outlining its plan for the trust within four business days. It will explain the deal to Wall Street analysts and the media in a telephone conference on Monday.
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I think it'll still rise a bit.

But in order for us to see anything close to the $80 or $90 dollar days again, GM is going to have to improve it's outlook on all fronts. (Debt, transaction price (fleet), stabilize share, etc.)

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don't know if its coincidence... or it is actually a transfer of consumer intrest but...

in the past two weeks gms market capitalization has climbed 5 billion while toyota motors has fallen about 5 billion...

wonder if the two are actually the same investors or just a coincidence

good timing for gm to come out with a camry beater... when toyotas approval rating is droping ;)

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I think it'll still rise a bit.

But in order for us to see anything close to the $80 or $90 dollar days again, GM is going to have to improve it's outlook on all fronts. (Debt, transaction price (fleet), stabilize share, etc.)

That's what I like most about GM's outlook, they have been addressing all of the things you've mentioned. While their short term (last 18 months) performance has been good, they have been setting themselves up well for the long term. UAW buyouts, givebacks, VEBA, reduction of fleet sales, improvement of retail sales, reduced costs by increased sharing and plant flexibility, and the list goes on...

That said, I agree that $80 or $90 is a long way off.

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The bigges tobstacle was always the labour union legacy. That's the root of all the pessimism and guess who created that mess? It's always been known that when you buy an import you ge features and options for the money and when you buy a GM you get health care for your cash.

Now that it's settled for now at least the sky is the limit. Not the Saturn Sky, although that is a nice stop-gap.

There's no telling where GM is headed but up is a good guess IMHO, of course.

Edited by FloydHendershot
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That's what I like most about GM's outlook, they have been addressing all of the things you've mentioned. While their short term (last 18 months) performance has been good, they have been setting themselves up well for the long term. UAW buyouts, givebacks, VEBA, reduction of fleet sales, improvement of retail sales, reduced costs by increased sharing and plant flexibility, and the list goes on...

That said, I agree that $80 or $90 is a long way off.

For sure the market is becoming very, very interesting. Look at all the Toyota problems: executives fleeing, problems with the Tundra launch, Avalon 'teething problems' last year. A quick flip through the latest CR shows an awful lot of GM and Ford products on the 'recommended' list. I think GM is in the loop with the upcoming Volt and knows more than it is telling. With the UAW mess behind it, huge sales increases in Europe (after all, the Astra is the #1 car there and it is coming here), do you not see a general trend here?

The only cloud on the horizon I see is that GM absolutely MUST get their marketing folks on a new tact. The upcoming Malibu launch has to be flawless, as with the Astra and others.

I've always been a big supporter of the General and although I don't think there ever again will be a 30+% market share in the future, holding 25% is not beyond the realm of possibility..........

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For sure the market is becoming very, very interesting. Look at all the Toyota problems: executives fleeing, problems with the Tundra launch, Avalon 'teething problems' last year. A quick flip through the latest CR shows an awful lot of GM and Ford products on the 'recommended' list. I think GM is in the loop with the upcoming Volt and knows more than it is telling. With the UAW mess behind it, huge sales increases in Europe (after all, the Astra is the #1 car there and it is coming here), do you not see a general trend here?

The only cloud on the horizon I see is that GM absolutely MUST get their marketing folks on a new tact. The upcoming Malibu launch has to be flawless, as with the Astra and others.

I've always been a big supporter of the General and although I don't think there ever again will be a 30+% market share in the future, holding 25% is not beyond the realm of possibility..........

True.

But I think while GM will post more profit, I still think they will drop a bit more market share (due to the drop in trucks sales), but should slowly gain tha back in car sales themselves.

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True.

But I think while GM will post more profit, I still think they will drop a bit more market share (due to the drop in trucks sales), but should slowly gain tha back in car sales themselves.

'08 will be an interesting year due to the volume of new product launch and the precarious situation some of the manufacturers find themselves, Ford the most notable. There is an interesting article on cnn.com today reviewing the '07 results and while it wasn't domestic positive, seemed to spin the truck business in a positive light by citing stats showing the decling there for domestics was no as precipitous as the car business. GM and Ford need some bread and butter winners in the car market in '08.

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My son had a stock market game in his class. I know nothing about stocks but said buy GM back in April at 28 bucks a share, he didn't make hardly any money, but if you would have given him the summer his investment would have returned well. They just didn't give him enough time. :AH-HA_wink:

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I don't think it would pull a Boeing, but then again, when I bought Boeing stock in 2003 @ 48 Bucks I didn't expect it to crest over 100 bucks in 2007.

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