Thursday, March 20, 2014

Watch out for GM A Buy with a Warning

With the recent ignition problems in the news GM has taken a good hit. It is showing a fantastic time to get in at, now at $35.26. I owned it for a short time frame last week, made a couple percent and got cold feet and got out. The news was just too scary then. But GM has been haunting me to get back in. I am still reluctant until these law suits have a clear definition. If you would like to ignore the chance that they will significantly effect the price, there is a nice buy signal right now. GM pays a yield of 3.44% which is OK. Not a deal breaker that would be used to overcome any downside risk.  It is up 1% today and looks to go higher barring any lethal news on the ignition problem. I will be getting back in when the suits are defined and if the price is still as attractive as it has been this last week. Google Finance for GM


  1. Well of course GM has taken it's licks with the lawsuit problem. The price has fallen to $34.47 since our buy signal was showing. That signal has tapered off a bit and is floating around the center of buy or sell. So I recommend not buying GM at this time. It is still overall in a good price range when the suits are behind us so keep an eye on the news and be ready to snap it up at a great price. I will also keep an eye on it for you if you would like to check back here regularly.

  2. GM news indicates maybe a less brutal courtroom than earlier expected. I'm feeling a tad less riskier now. I will be looking to BUY GM very soon. The price may already reflect the worst of the expected results. That would be a great opportunity to get in. Autos are going to pick up in Europe (soon, I hope) and help the balance sheet.