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
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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.
ReplyDeleteGM 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.
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