GM- General Motors - Insider Trading / Merging with Chrysler?

Discussion in 'Stock picks and trading strategies' started by aiki14, Oct 9, 2008.

  1. aiki14

    aiki14 Well-Known Member won april/06 simulator won weekly contest 13x won feb/07 simulator won jan/07 simulator won nov/06 simulator won mar/07 simulator

    So Gm has been the weakest stock in the DJIA all day and then they get downgraded late in the afternoon. How many people knew the downgrade was coming? I want to know who they were, I hope the SEC does too. Somebody made a serious killing on this, and it is nearly certain they acted in a nefarious manner.
     
  2. jacobnbr1

    jacobnbr1 Active Member won weekly contest 3x

    Re: GM

    You trying to imply "INSIDER TRADING"????

    Naw??!


    You think these markets are honest? Ca-mon AIKI you know thats the rhetoric and propaganda to make it "LOOK GOOD" for sentiment purposes only.
     
  3. aiki14

    aiki14 Well-Known Member won april/06 simulator won weekly contest 13x won feb/07 simulator won jan/07 simulator won nov/06 simulator won mar/07 simulator

    Re: GM

    I am no neophyte, but this is so obvious it's absurd. Usually they are a little more under the radar, just to fool the rubes.
     
  4. stideas

    stideas Member won weekly contest 2x

    Re: GM

    That would call for some serious allegations. SEC is impotent and definitely would not do anything even if they knew about this.

    I just feel bad for people whose retirement accounts have been diminishing every day coz of all these imbeciles.

    STI
     
  5. jacobnbr1

    jacobnbr1 Active Member won weekly contest 3x

    Re: GM

    There comes a time when the "UNDER THE RADAR" no longer needs to be justified.

    Think of it as an "IN YOUR FACE" thing and it is much easier to wrap your mind around.

    Kinda like the "LEGAL/JUSTICE" system, it is all rhetoric and propaganda to make it "LOOK GOOD'' but if you ask the right questions you figure out quickly that it is all a hoaks/scams run by "JACK BOOTED THEGS, CROOKS AND LIARS"
     
  6. aiki14

    aiki14 Well-Known Member won april/06 simulator won weekly contest 13x won feb/07 simulator won jan/07 simulator won nov/06 simulator won mar/07 simulator

    Re: GM

    Absolutely spot on.
     
  7. Bolimomo

    Bolimomo Active Member

    Re: GM

    SEC is only potent in banning the small guys for shorting the financial stocks. The outcome is still the same anyway.

    Oh, yeah... and IBM needs protection too.
     
  8. primer

    primer Member

    Re: GM

    I thought the exact same thing, aiki, when I heard the S&P announcement. Down ~20% in the morning on no news, then along comes the downgrade? Hmm.
     
  9. Bolimomo

    Bolimomo Active Member

    Re: GM

    Hey for GM selling at $5.00 a shares...

    How about buying 1000 shares of the stock (at $5000 + comm) and write 10 x Oct 5.00 covered calls ($0.83 each = $830 - comm). Keep rolling this month after month. If GM stays at $5.00, you get your money back in 6 months even if eventually GM goes to zero).

    I don't trade options much. Is there anything wrong with this strategy?
     

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  10. Rich

    Rich Member

    Re: GM


    Aiki, This goes along with the one famous post you made a while back about shorting.

    I remember when I was first starting out and you were trying to convey how the market becomes dangerous when brokers short stock but don't have the stock to short. I personally believe this is one of the MAJOR reasons this market turned. Someone on Fox stated that with one company there was like 5 million more shares that were shorted than what was actually out there to be traded!!! I thought of your post when I heard this, and immediatly understood why this can ruin/control/swing a market dramatically!

    So, in answer to your question, its not just knowing who 'knew' this, its the same point you brought out before, the authorities to be do little to enforce the rules and protect us who are doing our best to be honest. I'm begining to think there are more dishonest people in powers to be than there are honest ones.

    This was a terrible hard way to learn one of your lectures.....

    Rich
     
  11. Florida

    Florida Member won weekly contest 10x won aug/08 simulator won apr/08 simulator won jan/09 simulator

    Re: GM


    What if GM goes to zero in less than 6 months, not much chance on writing a call on a company that is out of business, not many buyers for that option.

    Unlikely this would happen, but it could. More likely that the stock keeps drifting down, which lowers the premium you can collect each month, plus the value of your shares decrease.

    Best case is the stock stays right where it is at for 6 months, which is highly unlikely.
     
  12. jacobnbr1

    jacobnbr1 Active Member won weekly contest 3x

    Re: GM

    You may be looking at the wrong factors and ignoring the obvious.

    The obvious painting on the wall is this=

    The consumer pulse and confidence gm, ford and diamler are in the crap house big time...

    There are not enough suckers born each day to keep them going.

    The pulse of the consumer ( and i have have 1st hand knowledge of the facts because i am in the automotive industry) is that they are not reliable enough and they break too often to the point where folks be thinking it was built to fail.

    folks are buying toyo,honda, hyundai, mitsu's etc...

    They are just fed up wit it.
     
  13. Survivor

    Survivor Member

    Re: GM

    The big three threw it away a long time ago.
    Sad but true...

    Quote: Preston Tucker 1954, someday we might buy our cars
    from our former enemies. :thefinger: He was right.

    Fifty years from now the US might buy dynamite from Al Qualda
    because it explodes better than US dynamite??? :sheep:
     
  14. Florida

    Florida Member won weekly contest 10x won aug/08 simulator won apr/08 simulator won jan/09 simulator

    Re: GM

    I beg to differ,

    Folks are not buying anything!!

    Toyota's September results showed a higher rate of decline than GM.

    As for the quality issue, in years past there was something to your thoughts, but today, that is not the case. Over the past 10 or so years, the quality of the American made vehicles have matched or in fact bettered that of their foreign counterparts. What we have is a perception issue when it comes to American vs. foreign vehicles. Many people I know swear by the reliability of their foreign autos, but they are making more trips to the dealer for repairs than I am with GM vehicles. I have owned 7 different GM vehicle over the past 10 years and still own 2 of them, and you can count the trips I have made to the dealer for repair on 1 hand, (knock on wood).

    I too have first hand knowledge of the facts, having been in the automotive industry for over 30 years. All of the manufacturers, be they domestic or foreign are suffering right now, but that too will pass. I doubt seriously that Toyota, Honda or any of the others would have survived so far if they were saddled with the same overhead issues like retirement, healthcare and union costs like the big three have.

    Personally, I will take the bus before buying a foreign vehicle. Why contribute to the profits of the foreign companies, we need the US economy to be strong.

    "When better cars are made, GM will make them"
     
  15. aaronchall

    aaronchall Member

    Re: GM

    And nothing makes our economy stronger than direct foreign competition. If it weren't for Toyota, Ford's byline would still be "Found On Road, Dead." I have a Toyota, a Mercury, and a Chevrolet, and I happen to be rather pleased with them all.

    Aaron
     
  16. jacobnbr1

    jacobnbr1 Active Member won weekly contest 3x

    Re: GM

    "No ones buying anything"

    No shat!

    Im saying that if they are purchasing a vehicle it will be from the other guys not the big three.

    Face the fact that the corporate three have plunged quality control for the exchange for the almighty dollah, and GM will be the last to come to the table with a "BETTER CAR".

    You have to ax yoself this question before you spend 20-35k for a new car.
    do I spend 25k today to get me 100k miles or 25k today for 200k miles?

    I aint gonna argue about it when the obvious paint on the wall tells the truth, look at the share price..
    If gm was doing such a fine outstanding job then the share price would show it wouldn it?
     
  17. Survivor

    Survivor Member

    Re: GM

    To each his own... I ran the following cars into the ground.
    1966 Chrysler Newport 383 engine, 200,000 plus
    1980 Ford pick up 300 straight 6 cylinder, 280,000 mi. sold it.
    !977 Plymouth Fury, 318 V-8, 285,000 mi, it ran another 4 years after I sold it.
    1978 Cadillac Coupe 425 V-8, 165,000 mi. winter road salt was
    getting to it after 15 years. Not pretty, ran great.
    1970 Cadillac Sedan de Ville, 472 V-8, 173,000 mi.
    1970 Cadillac Fleetwood, 125,000 plus, rust got it.
    1972 Dodge Dart 225 6 cylinder, 173,000 rusted out.
    I am an ASE Master Certified Mechanic for 25 years I could write a
    book on the junk Foreign automakers turned out. Pick one, they all have flaws.
    Proper care gets most to 200,000 miles.
     
  18. jacobnbr1

    jacobnbr1 Active Member won weekly contest 3x

    Re: GM

    Ehh...Those years are where the quality control was the strongest.
     
  19. Survivor

    Survivor Member

    Re: GM

    Remember the day when you couldn't wait for the new cars to come out? now,
    no one really cares as the body changes are too slow to evolve.
    Any 1957 GM, Chrysler, Fords were cool.
    1965 was another great year for GM, Cadillac, Oldsmobile,
    Buick, Chevrolet, Pontiac was the car of the year.
    1967, 1968 was more stylish offerings by GM. Big block V-8's
    The cars were beautiful, long low and fast, chrome.
    68 Cadillac Eldorado, timeless classic.
    GTO, Camaro, 1968 Firebirds, 1965 Olds Starfire,
    65 Pontiac Grand Prix with real teak on the dash board.
    Buick Electra and Wildcat's.
    1968 Cadillac 472 cu,in.375 hp Engine.
    1970 Cadillac had a 400 horse 500 cu.in. 550 ft.lbs of torque.
    1971 had many unique features on GM cars.
    1971-73 Buick Riviera fast back.
    1977 Olds Cutlass out sold everything their was except the
    VW Bug. I know I missed some other great ones.
    Hide away headlights, Chrysler Imperials, 69-70, 440 V-8.
    It was nice back in the day. Thank the Gov., Arabs, and stupidity.
    Along comes the 1973 Arab oil embargo and crushed the automobile markets.
    Some cars held their style and reliability
    by the early eighties it went down hill fast in most cases.
     
  20. Rich

    Rich Member

    Re: GM

    Dad had a 1968 Coupe DeVille Convertable!! We sold it for $900 AHHHHHH

    Also had a 1968 with a 289 AND 1969 Cougar, Dad wouldn't go with the Cobra Jet engine though@

    I use to work at the Mercury dealer and delievered all the hot Cobra Jets and Hi Performace 289's. The Lincolns were fun too!
    Darn, I never had so many traffic tickets LOL

    I then bought a 1969 Charger with a 383 Hi Performace and rebuilt it for more power. Sweet sweet car, pure black. My father made me sell it or I was out of the house, Sold it for (guess) Yep, $1000 . I would have been able to retire if I held on to those cars!

    Then the 70's came, NOTHING ran right and sticker said 20 mpg's but they were always 50% wrong!

    Rich
     

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