GM Stock is now trading at $1.00, buy or not

If I was going to risk $2,000, I'd put it into SIRI. The stock is around $.35, but it's going to go higher. Among other things, they have a monopoly on the market now that Sirius and XM are merged. They've got new financing to get them out of debt trouble, Toyota signed to put XM Radio in all new cars, and an iPhone app slated for release this quarter.

Penny stocks are always a risk, but come with much reward.

(I'm was in at $.12, sold at $.60, back in today at $.35).

Kevin52 wrote:

USAF_run wrote:

Good or bad investment idea?

Worse than bad. GM will likely go into bankruptcy and the current common stock will get wiped out, gone, worthless. If they do survive without the bankruptcy, Obama will make them build cars nobody wants anyway.

Trust me I've made this mistake before and it was expensive tuition for my schooling. I pass this lesson to you for free.

There are many good, young and growing companies to invest in. That is what you want, not a dinosaur like GM.

Get yourself a subscription to IBD and read it for a few months along with the book(s) you will get with it. Then you will understand.

+++++++++++++++++++

This is the only post you need to read from this thread---word.

Good advice: buying SIRI. I bought 500 shares when it was $0.16. Of course, I also bought 200 when it was $0.89. Still, I feel good about this one for the reasons stated above.

Bad advice: doing something suggested by Jim Cramer. This guy is a joke and not taken seriously by top Wall Street movers and shakers. He gets lucky every now and then (who doesn't), but he has zero credibility among the cognoscente.

$1 seems pretty cheap for a car company.

How about Citi?

No, GM stock will not go to 0.00. It will go to 0.02.

Flagpole wrote:

but you should consider following Jim Cramer's advice

oh dear.

Bad BO wrote:

Look into it before you say want you think happened.

....no......i don't feel like it....

clunt wrote:

Flagpole wrote:

but you should consider following Jim Cramer's advice

oh dear.

Not ALL of his advice (I wouldn't follow any ONE person's advice on when to buy and sell). His diversification advice with regard to buying individual stocks -- THAT is solid from him though. Here's his approach (and it is right on the money):

1) Fund retirement accounts first and always. (this is 401k, Roth IRA in good growth stock mutual funds)

2) When you buy individual stocks, buy no fewer than 5.

3) Never put more than 20% of your stocks in any one sector of the market.

4) Spend an hour a week per stock researching whether to sell or not.

The points above are SOLID.

Mister Obvious wrote:

Bad advice: doing something suggested by Jim Cramer. This guy is a joke and not taken seriously by top Wall Street movers and shakers. He gets lucky every now and then (who doesn't), but he has zero credibility among the cognoscente.

Not everyone agrees with you and Cramer, Flagpole.

Bad BO wrote:

K-mart was the same way a few years ago. Slipped below $1. They reorganized and the bankrupcy court allowed them to wipe out shareholders and start over and issue new stock. (Yes, the equivalent of stealing from the shareholders) GM will do the same thing.

Delta airlines did the same thing a couple years ago

u missed this wrote:

Not everyone agrees with you and Cramer, Flagpole.

1) I don't follow his advice on what to buy or when to buy and sell.

2) His general advice on investing in retirement accounts first and then the number of stocks you need to own and how much to put in a sector though -- SOLID.

3) Those who make fun of Cramer or say he doesn't know what he's talking about though are just jealous or stupid. The hedge fund he managed from 1988-2000 had just ONE down year ever. Someone puts in that kind of track record, then they can rip on him all they want.

Those of you who get your "news" from The Daily Show...holy crap!

Flagpole wrote:

3) Those who make fun of Cramer or say he doesn't know what he's talking about though are just jealous or stupid. The hedge fund he managed from 1988-2000 had just ONE down year ever. Someone puts in that kind of track record, then they can rip on him all they want.

Those of you who get your "news" from The Daily Show...holy crap!

Not the Daily Show, but Wall Street. Unfortunately Cramer does not carry the same weight there that he does with you.

So what's the word on SIRI?

Buy

reality strikes hard wrote:

Not the Daily Show, but Wall Street. Unfortunately Cramer does not carry the same weight there that he does with you.

What investment guy do you know who EVER gives props to another investment guy? Hell, most of them rip on Warren Freakin' Buffet whenever they get the chance, and he's the best ever. The reason is that they are salespeople and want to convince potential clients that THEY know what they are talking about, and one way to do that is to rip on the guys in the spotlight.

Investing is filled with risk and uncertainty and luck. Agree with Jim Cramer's individual picks if you want (I don't follow that kind of advice from him), but with regard to not losing your shirt (being in retirement accounts first and only being 20% in any one sector and never owning fewer than 5 stocks), and general advice about what to look for when trying to determine what to buy...Cramer's as knowledgeable as anyone else. His track record as a fund manager gives him some cred.

Ya know, if you'll pulled the trigger on your $1 GM deal, you'd have about 2k shares, up $.28 in two days, a solid 28% return = $560. Maybe next time go with your gut instead of asking letsrun.

Just don't hold GM. They're going bankrupt.

Flagpole wrote:

What investment guy do you know who EVER gives props to another investment guy?

You.

xc4 wrote:

Flagpole wrote:

What investment guy do you know who EVER gives props to another investment guy?

You.

I'm not a guy with clients, so NO, not me. Besides, I typically only point out the good things most of them say, not the bad things. Jim Cramer recommends some things that I wouldn't do, but I'm a conservative long-term investor who doesn't dabble in individual stocks. I also listen to Dave Ramsey and Bob Brinker among others, but there are things that they all say to do that I would NEVER do...doesn't mean that some of what they say is solid advice.