SWing'R Posted November 13, 2008 Report Share Posted November 13, 2008 (edited) So everyones heard about the big three automakers are in dire straits and about to go belly up right?Well last night I happened to hear on the news that Ford stock was down to $1.80 a share and GM was under $3.So, I'm wondering, would it be smart to pick up a few hundred dollars worth of either one of those assuming that the stock can't go much lower and will most likely go up? Or do you think they're gonna go bankrupt and its a sure loss to invest now?I'm thinkin at under $2/share it would be easy to at least double your money no?Ford closed today at $1.84... http://finance.yahoo.com/q?s=FGM closed at $3.08... http://finance.yahoo.com/q?s=GM Edited November 13, 2008 by SWing'R Quote Link to comment Share on other sites More sharing options...
dustinsn3485 Posted November 13, 2008 Report Share Posted November 13, 2008 I think anything at this point is pure speculation. But I also think the gov't has to bail them out like they've done the financials (AIG, etc) The big 3 are more than just that for the economy, the small businesses that build for them would also go bankrupt and who knows what else beyond that. It would be an economic meltdown.Just because I'd like to see what happens I'd like to see them go bankrupt, but I don't think it will happen. Only my opinion. To invest in some stock is still a risk though because who knows when it's going to go up though.I'm absolutely sure there's someone that knows more and has a better thought process on here than I though. Quote Link to comment Share on other sites More sharing options...
f4isvt Posted November 13, 2008 Report Share Posted November 13, 2008 They will get bailed out in one way or another chrysler got bailed out once already in the 70's or so. I would say it is a worth while investment. Quote Link to comment Share on other sites More sharing options...
zerocrash Posted November 13, 2008 Report Share Posted November 13, 2008 Hmmm... Satan (or Casper now) and I were just having this conversation the other day. Quote Link to comment Share on other sites More sharing options...
max power Posted November 13, 2008 Report Share Posted November 13, 2008 I heard that too and immediately started thinking of shit that I can sell. Quote Link to comment Share on other sites More sharing options...
dustinsn3485 Posted November 13, 2008 Report Share Posted November 13, 2008 Hmmm... Satan (or Casper now) and I were just having this conversation the other day.I'd like to hear what he thinks. Quote Link to comment Share on other sites More sharing options...
zerocrash Posted November 13, 2008 Report Share Posted November 13, 2008 I'd like to hear what he thinks.I think he was considering Ford, and had pretty good logic behind his thoughts. I'm sure he will share. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted November 13, 2008 Report Share Posted November 13, 2008 Are you looking to make a quick buck short term, or you planning on hanging on for awhile? That would change the advice you get. Quote Link to comment Share on other sites More sharing options...
ReconRat Posted November 13, 2008 Report Share Posted November 13, 2008 I fear bankruptcy would allow the corporations to re-negotiate the union labor wages. The root problem is prices that are too high at the market place for consumers, against the competitors. Note that GM is trying to setup and build cars in both Russia and China. Value of stock could go either way, with no way to tell yet which way. I don't think the market in general has seen it's bottom yet, and that will have it's effect on GM and Ford stock also. Some of the GM and Ford current strength is people doing exactly this, buying because the prices are low. Conditions are not currently conductive to making predictions. Quote Link to comment Share on other sites More sharing options...
ReconRat Posted November 13, 2008 Report Share Posted November 13, 2008 Satan likes Fords better than Chevys...Honestly, under these market conditions, it's called gambling. Quote Link to comment Share on other sites More sharing options...
SWing'R Posted November 13, 2008 Author Report Share Posted November 13, 2008 Honestly, under these market conditions, it's called gambling.Well I just initiated a $200 transfer to my ShareBuilder account so I got about two days to decide if I want to sink it all in Ford or some in Ford and some in GM. Someone asked if I was looking for the quick buck or in it for the long haul, I guess I'm not really sure. I've only bought some stocks a few times in the past and I found myself unable to stay in anything for a very long time, always ended up selling. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted November 13, 2008 Report Share Posted November 13, 2008 Day trading (short term) is a gamble. Some people make an assload of money, MOST people lose it all. If it were that easy, everyone would be doing it. There are statistics to back up "long haul" investors, in which case you'd be better off in a mutual fund (or index fund) and let someone whose SOLE JOB is to manage the fund and trade stocks manage your money for you. Quote Link to comment Share on other sites More sharing options...
fusion Posted November 13, 2008 Report Share Posted November 13, 2008 We were talking about this also recently. Only for us Ford and GM where bottom of the barrel picks. They are both horrible companies. Of the two GM is probably your better pick if you wanted one. Quote Link to comment Share on other sites More sharing options...
dustinsn3485 Posted November 13, 2008 Report Share Posted November 13, 2008 Short term I see no growth with either at all. I think it's tossing your money in the dumpster.Long term, well eventually they will rebound. As I said in my first post I don't think they can go bankrupt, it'd put the economy in shambles. Not to mention the number of small businesses that would also have to close up. Quote Link to comment Share on other sites More sharing options...
Todd#43 Posted November 13, 2008 Report Share Posted November 13, 2008 There are statistics to back up "long haul" investors, in which case you'd be better off in a mutual fund (or index fund) and let someone whose SOLE JOB is to manage the fund and trade stocks manage your money for you.Careful there skippy.Their SOLE JOB is to make money for their brokerage, and themselves.You're third in line. Quote Link to comment Share on other sites More sharing options...
Big Chief201 Posted November 13, 2008 Report Share Posted November 13, 2008 ok so I guess its time I put my two cents in to this conversation........Ford GM and that other car company still have some losing to take on. Have you heard any good news from any of the automotive sector? If you have I would sure like to know where. Car sales are down etc. etc. If I were you and I'm not I wouldnt waste your money on Ford or GM youre kind of looking at a get rich scheme in my opinion. If you look at the 5yr highs for these companies you probably wouldnt even make 8K if the markets actually went in your favor. Nows the perfect time to invest in energy for example any enery EFT have been consistently pumping out 33-100+% ROI (return on investment) a year. Also precious metals are always good buys at these level. Nows the time to buy people and buy buy buy we must. You dont hear stories about people getting rich when the markets doing well. Its the people who invest when the markets suck that end up to be winners. But what do I know... I'm just a.... Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted November 13, 2008 Report Share Posted November 13, 2008 Careful there skippy.Their SOLE JOB is to make money for their brokerage, and themselves.You're third in line.Ok, I oversimplified it a little, but I don't think anyone on here wants a 12 week course on finance and investment. I take solace in knowing that the same guy playing with my money has a vested interest in making me money regardless of where I'm at "in line". Quote Link to comment Share on other sites More sharing options...
shittygsxr Posted November 13, 2008 Report Share Posted November 13, 2008 take this for what is since I am in an er with an iv and ambien. Stock price traded on the predicted future ofthat company. Diversity is key to investing but with small change you can't create diversitybecause of all of the commisions. Sharebuilder gives you the ability to invest over time (dollar cost averaging) look for an energy stockthat pays a dividend after a year or two of purchases the dividend may be substantial. Additional revenue could be generated selling options on your holdings Quote Link to comment Share on other sites More sharing options...
Fonzie Posted November 13, 2008 Report Share Posted November 13, 2008 take this for what is since I am in an er with an iv and ambien. What are you in the ER for again.....You OK??? Quote Link to comment Share on other sites More sharing options...
Big Chief201 Posted November 13, 2008 Report Share Posted November 13, 2008 take this for what is since I am in an er with an iv and ambien. Stock price traded on the predicted future ofthat company. Diversity is key to investing but with small change you can't create diversitybecause of all of the commisions. Sharebuilder gives you the ability to invest over time (dollar cost averaging) look for an energy stockthat pays a dividend after a year or two of purchases the dividend may be substantial. Additional revenue could be generated selling options on your holdingsIt is illegal to short sell now thanks to the Gov. Quote Link to comment Share on other sites More sharing options...
Cdubyah Posted November 13, 2008 Report Share Posted November 13, 2008 If you are going to invest for the long haul, you need to find something that offers dividends. No matter how much you lose, you will always get something back for what you have invested. I'm not sure if Ford or GM offers this or not. With the dividend your financial broker will reinvest the money back to buy more. (mine does)It's a good time to buy for the short term. Even if you invest $500 or so, as soon as it hits $4/ share. You have doubled your money. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted November 13, 2008 Report Share Posted November 13, 2008 It is illegal to short sell now thanks to the Gov.It should've been illegal to begin with. I don't understand how you can sell something you don't own. Quote Link to comment Share on other sites More sharing options...
Big Chief201 Posted November 13, 2008 Report Share Posted November 13, 2008 its a good money making strategy..... if i came across a strategy that would be a cash cow for me id exploit it..... Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted November 13, 2008 Report Share Posted November 13, 2008 Why dont' you start a pyramid scheme? That's a cash cow, and exploitative.Ohh, but it's also illegal. Quote Link to comment Share on other sites More sharing options...
SWing'R Posted November 13, 2008 Author Report Share Posted November 13, 2008 It's a good time to buy for the short term. Even if you invest $500 or so, as soon as it hits $4/ share. You have doubled your money.Thats my whole point. I'm gonna drop $200 onto one of them and hope for the best. Quote Link to comment Share on other sites More sharing options...
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