What are the feelings of GM making a comeback in 2006.Today,on Bloomberg I listened to the Chairman of the Board being interviewed & they are cutting back about 12 plants.They are introducing a new line up of 2006 autos,trucks,SUVs.Theri only problem for sales has been the US market,yet they lost about 4.5 /billion .They plan to cut back & save 4 billion,this year.Should this be a recovery stock & should I buy .

I personally like GM. However, would I recommend buying their stock now... probably not. There used to be the BIG 3 in automotives (GM, Ford, and Chrysler), however, with the emerging forgein markets, Honda, Toyota, and Nissan are all making record sales, and have combined with the North American companies to create the BIG 6. In high school I was a mechanic apprentice at a GM dealership, and I really liked what I saw in terms of product. The main thing to consider in this situation though is the price it costs them to manufacture their vehicles. Their foreign competitors are coming up with equal, or better products, with less expenses. I like GM in the long run, but I think the company is just to fragile to take a position in right now.
Seth

.eth I see your point about the extra competition & even Kekorian wants the dividend cut,to save money.After all kerkorian is one of GM's largest SHs.So, if the dividend is & probably will be cut,then I suspect the pps will go down more,.But ,you never know,as the analysis may consider that a strong move in addition to the announced cuts.

I want the USA to have the number one auto maker in the world,as a American This to me is important.The chairman has stated in todays interview that ALL management is focused to make this turn around.As in all stocks ,time is thec factor to tell the story.

I'm with you Cooldad, I want America to have the number one automaker. Plus Toyota ticked me off. I have owned two Toyota's. Currently I own a Toyota Sienna and when I went to Iraq, under the soldiers and sailors relief act, places you have loans through, etc are required to drop your interest rate by law when you ask due to deploying. Toyota refused to. They told my wife they did not support the war. Well I shouldn’t say Toyota specifically but the rep on the phone handling my account said that was their policy and they would not help me out in any way.

They set that relief act up because by being deployed our income gets cut, as we all know you don’t make a lot in the army, lol. But anyway they ticked me off telling my wife that. She felt horrible having someone tell her that on the phone while I was in Iraq risking my life.

My unit said I could fight it and bring JAG into the picture but to be honest it was going to be a lot of work to do on top of everything I was doing in Iraq at the time, etc.

So I said forget them and I will never buy Toyota again. I had planned on buying a Toyota pickup when I got home. But now I will look for a different truck.

slant street good for you.Any one who does that imo is anti American & you desreve much better treatment.Maybe you should have brought JAG into this issue;because could be the newspapers would have picked up the story & then you know the sentiment out there,WOW!!!

I probably should have let JAG, but at the time it just felt like there was too much to try and do on top of being in Iraq. My First Sergeant however, his words were “You don’t need a small sissy truck like a Toyota anyway. You need a big Silverado, a mans manly truck. LOL

But honestly I really liked the Toyota Tacoma trucks. But I won’t buy one now.

GM at least has a section on their website for supporting the military. A few weeks back when I saw GM stock drop (I think they said something like 18 year low) I had thought of buying for a long term investment. I am just not sure where or when to get in yet.

been playing the options...buying the PUTS on every price increase and now is time to get back in on a short position or you can buy the PUTS....jmho

Thanks for your input Gateway.Seems that GM is potwentially a better turn around than Ford,at this time.What is your opinion of GE?

Well I know I would buy shares in GM before I would in FORD anyday. Ford is going downhill fast, and I think inspite of their "turnaround" plans, they will still begin to sink to the ground. They have just simply compromised their product too much.

Seth

Seth I agree that GM has a much better chance of recovery vs the imports than does Ford.But,still sorry for the world of hurt those layoffs will cause.