#1
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GM stock
Not sure it this is the right forum so feel free to move the topic if needed.
I just inherited 180 shares of GM stock. Knowing little about the stock market Im not too sure if this is something I want to hang on to or something I want to dump. Any opinions? |
#2
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Re: GM stock
If you would not have bought the stock otherwise then I can see no reason for you to hold it now..
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#3
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Re: GM stock
If it were me, I would hold it.
just put them in a safety deposit box and look at them again in 10 or 20 years to see what they are worth. |
#4
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Re: GM stock
[ QUOTE ]
If it were me, I would hold it. just put them in a safety deposit box and look at them again in 10 or 20 years to see what they are worth. [/ QUOTE ] |
#5
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Re: GM stock
[ QUOTE ]
If you would not have bought the stock otherwise then I can see no reason for you to hold it now.. [/ QUOTE ] This is not good advice. If he is an active investor, and knows of better opportunities, then that may be true. However, the general public (and since I know nothing about the OP I can't judge him), does not own any stock, and is not actively looking for any stock to buy. Personally, if you just obtained 180 shares of GM, I would hold on it. Although their stock has been doing great for the past year, it just took a big pounding (bigger than the pounding you would take in federal pound me in the ass prison). Therefore, I would suggest holding onto it, as it is prime to make a great recovery. GM has really turned things around, and their stock will continue to appreciate at a good rate for atleast the next year or so. |
#6
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Re: GM stock
[ QUOTE ]
If it were me, I would hold it. just put them in a safety deposit box and look at them again in 10 or 20 years to cry remembering how much they were worth before the bankruptcy. [/ QUOTE ] GM is going bankrupt. It's not a question of if, but when. You can't pay your employees twice as much as your chief competition, and ever succeed. GM management and board have stuck their heads in a hole and are in denial, but it will happen (probably right after today's CEO cashes out his pension). GM's UAW employees cost $100k per year. If GM doesn't have work for them, they have to spend $100k per year so the employees can sit in a room and read magazines (it's called the "jobs bank"). GM owns some profitable businesses. It just sold off most of their most valuable subsidary (GMAC) so they could plow the money back into the hemorraging auto business, and ensure they have enough cash so the UAW can refuse to compromise in the next contract negotiations. The current management team is retarded, but even the most brilliant managers in the world would fail at this job. They've been losing market share for 30 years+ and it's only accelerated since they've created the jobs bank and loaded up the UAW with gold plated pensions and medical plans. The only thing that can save them from bankruptcy is if the UAW wakes up and realizes their gravy train contract will the company and destroy the few remaining UAW jobs. I find this very unlikely. |
#7
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Re: GM stock
Do some research on the company, and if you think they are fairly priced or udnerpriced, hold on to them. If you think they are not worth the current share price, sell them.
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#8
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Re: GM stock
While you make some good points, GM is in 100x better shape than Ford. When Ford goes belly up, then sell GM. But unless that happens, GM is actually making a decent turnaround, and could start taking back a lot of market share in the next 2-3 years. They have a good plan, we'll see if it works. The best time to buy is when everyone else is selling.
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#9
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Re: GM stock
Thx for the answers guys. Another question..
I dont really need the money right now so the stock sitting there isnt hurting me. However Im really wondering if it would be smarter to dump it and put the money in some kind of fund. I already have a roth IRA set up and contributed the max last year and have the 4k set aside already for 07. Would it be wise to put the money from the stock in some sort of mutual fund, or just hold on to it for now? Tx |
#10
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Re: GM stock
Tk,
As you can tell from the posts here it appears GMs future is kinda ambiguous. Taking the money out of GM and putting it into a fund is a great idea. You should probably put it into one of Vanguard's index funds. |
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