Auto stocks

[highnote]

FORD and GM are so cheap now. If they don't go bankrupt, they may be great buys. $2 per share for Ford and about $5.60 for GM. These are cyclical stocks that have about a 5 year cycle.

I never thought I'd see them priced so low!

[RaceBookJoe]

Amazing isnt it.....I was just looking at some of my trades from 1999, just to remember the prices on stocks. Stocks in the 100's moving 20-150 points in a week it was really nuts. Now the auto stocks are really low, not sure of the near-term value, but if they can survive the next year there might be some really good value there. If you tend to have a slight gambling streak in you and have a few thousand dollars to take a shot with, your downside risk is fairly limited, even on 1000 shares. My way is that I dont guess on a trend turning, i wait for the turn and then jump on the bus. You can make a ton of money that way...and not have to stress yourself out trying to call tops and bottoms. Once you see that trend turn back up in this case, you might want to buy longer term calls or actually LEAPS. I always say that if you decide to part with your money, make sure you get a decent return for it......now if I would only stop playing favorites to place :bang: rbj

[Tampa Russ]

I can't sit on the sidelines any longer. I just see this as a great buying opportunity for a lot of stocks. Not all at once, but I'm starting to accumulate now.

[ddog]

Rbj

yep, I like your style here.

I am willing to give up the first 10-15% on the issues that have been killed.
Hop on when the run is confirmed, if they are truly long-term good then you will be as well.

[RaceBookJoe]

Rbj

yep, I like your style here.

I am willing to give up the first 10-15% on the issues that have been killed.
Hop on when the run is confirmed, if they are truly long-term good then you will be as well.

Like Jim Cramer says...there is always a bull market somewhere, we just have to find it. I think the way to play the uptrend when/if it comes is to concentrate on the best/hottest sectors( but thats how I always play). From there you have 2 choices...dig deeper to find the strongest stocks in the strongest sectors OR take the easier way and play the sector ETF. The goal right now is to get through these times without losing too much and possibly making a profit. The profit will be in short term stuff though....i wouldnt hold anything overnight right now. Crazy day, market dropped really quick at the end. rbj

[RaceBookJoe]

FORD and GM are so cheap now. If they don't go bankrupt, they may be great buys. $2 per share for Ford and about $5.60 for GM. These are cyclical stocks that have about a 5 year cycle.

I never thought I'd see them priced so low!

Ford is up today so far....Gm under $5. let me know when you are going to pull the trigger. rbj

[ddog]

Ford is up today so far....Gm under $5. let me know when you are going to pull the trigger. rbj


Well, I am going to tiptoe into Gm up to 25.
Then we will see what mid-late next year brings.

I do think the gvt will bail them out.

F , i am staying away from, although I think they would get a bail as well.

[Valuist]

CNBC reporting that GM and Chrysler are in talks about a merger.

[pandy]

FORD and GM are so cheap now. If they don't go bankrupt, they may be great buys. $2 per share for Ford and about $5.60 for GM. These are cyclical stocks that have about a 5 year cycle.

I never thought I'd see them priced so low!

Although they could go bankrupt, I would think that either one or both would be sold first, and for more than they're currently trading for. The problem is, they don't have any cars that people want right now. If they had even one car that got 40 mph and had a decent ride it would sell enough to keep the entire company afloat.

[ddog]

CNBC reporting that GM and Chrysler are in talks about a merger.



:)

[Steve 'StatMan']

CNBC reporting that GM and Chrysler are in talks about a merger.

I read this yesterday and felt really sad, because I really like my old Dodge Caravan, and might very well buy a new one when I can. Then I realized that that told me what I really felt about GM. I managed to surprise myself. Imagine I'd have felt similiar if it was Ford & Chrysler. I've owned some of all of them.

I'm not in the stock market directly, so don't let me influence anyone.

[ddog]

it's just economic reality.
There have appeared to me for several years to have been too many car co. out there, just like too many racetracks.

If merged and most of the plants shut and lines cut wayback, even with that, could the merged be a decent co, I don't know.

But, it's worth a shot and otherwise I think they both are dead.