SO GM & Citi are going and the market is up?

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PtrainerNY

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Government Motors is bk along with Chrysler
Citibank might be government owned.

Yet the market is up today? Speaking to friends (who are advisors), they are like clients are telling them nows the time to make $$ off the market. It's not as bad as it was. Getting put back in. from cash...

Doesn't anyone care about market fundamentals? A company shouldn't go up because it's cutting costs to make profit but GROWING? Cutting costs has been getting rid of 1/3 of your employees and then saying it's an efficiency gain..



Edited 1 time(s). Last edit at Monday, June 1, 2009 at 09:53AM by PtrainerNY.
 
Cutting costs is an excellent way to make profits grow and tends to have huge positive near term effects on stock price.
 
Everyone gets all depressed about the cuts (both on the corporate level and in California state level) but the truth is that these cuts take out inefficiently allocated capital, both human and financial. They are hugely positive for shareholders; positive for all stakeholders. It makes me sad that our federal government is taking the opposite approach.
 
I'm divided between two views:

1) The market is crazy (or, maybe GM bankruptcy was already priced in).

2) After a bout of food poisoning, don't you feel better after throwing up?
 
The market is not crazy, they will bid it up to around 9.5k to 10K and then they will short heavily for huge gains.
 
who is "they"? Who is the smartmoney that is outperforming? LOL.
 
OP you really need to work on your english skills. I found your post unreadable almost
 
So the bankruptcy plan calls for current GM shareholders to receive exactly nothing. That would explain why the stock is up 18% today.
 
The biggest joke is what this new CEO is babbling .. Like, "we gonna make sure that every new model launched will be a success". What have they been doing before? If that is your starting point, then good night.

Foolish to believe that GM will all in a sudden turn into a serious competitor for the likes of Toyota, Volkswagen, Daimler, etc. GM is still working with the same ole nitwit workforce with the same tools and the same machines. You need more than $ 30 bln and a new CEO to transform into a winning enterprise.
 
I've heard always heard not to buy a car made on a Friday. Who is going to want to buy a car from a company in BK unless it's an absolute steal?
 
GM Dec 1.00 calls are trading at 14 cents. If they expect the equity to get wiped out in the next 90 days these calls are guaranteed to go to 0. I'm going to see if they still allow opening trades in GM options, if so I'm going to short a gazillion dollars worth of it.
 
JohnThainsLimoDriver Wrote:
-------------------------------------------------------
> Just shorted 10 contracts. We'll see how that
> goes.

For $140 that doesn't sound like its worth it. We just crossed over the 200 day sma and are back to the november level if that is meaningful.
 
It's not meaningful if the stock's going to 0 when the company emerges from BK. As it stands the only way I get hurt is if the stock keeps rallying for some unknown reason and I get hit with a margin call. Not likely on a 1000 share position though. I think the BK is slated to be completed by 3Q which perversely enough should make the September calls more valuable than the December calls.
 
"I want them to get a fantastic return on this investment," Henderson said in an interview this afternoon. "It's our job to deliver that."

why didnt they decide to do this earlier? they could have saved the company from bkuptcy.



Edited 1 time(s). Last edit at Monday, June 1, 2009 at 03:40PM by needhelp.
 
Financials are having a tough time keeping pace with the overall market. XLF July 13 Puts.
 
GM up 16% today. Seriously if someone wants to loan me some $ to short the calls I'll split the profits with you.
 
GM stock up 120% since the BK filing last week, guess I must have missed the part where they said existing shareholders are going to get double their money back in the restructuring.
 
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