10:07 BLW US EQUITIES ALERT: Stocks recover; GM news helps U.S. stocks were higher Wednesday morning as buyers returned to the market after a Fed-induced sell-off Tuesday. General Motors' (GM) reaffirmation of earnings guidance also added to the positive tone..It is amazing to me how short sighted analysts and many investors are. What about 2002? Does anyone think that the price ought to bare some correlation to more than 1 quarters worth of "projected" sales? These are cars people, CARS. Should the stock price reflect DECLINING market share and declining profit margins? How much blind faith are you going to invest into the notion that some CFO can read into the minds of the average consumer and into the future in order to acurately predict what is going to happen to the auto market next year and the year after that? If they have that kind of talent, they certainly are wasting it working for an auto companies when they could easily rule the WORLD by amassing great fortunes trading their own stock portfolios. Perhaps if they have such infallible abilities to predict the future, THEY should be Wall Street analysts.
I like having dialog with myself; I suppose it's the same as thinking outloud. I'm far from being a genious, but I don't think one need be a sage to see what's coming for auto companies. I think a modest amount of business acumen would do the trick in this case. I find it AMAZING that I'm the only one who thinks this way. It isn't that these companies are bad companies. My thesis is that the well is drying up for a few years unless they are targeting that lucrative Amish market, and with the enormous debt that have, times will be tough. There must be a REASON why S&P and Moodys put GM on credit watch. It comes down to VALUATION. I know they reafirmed "guidance" for the next quarter but is that as far out as you look when you decide to buy a company in the real world?
MrArbitrage said:I find it AMAZING that I'm the only one who thinks this way.Don't think that you're the only one who thinks that way. Most of us do. But we don't blurt out our every thought. You are a real piece of work, my man. I wopuld love to short GM, but I can't wake up early enough.-Rich
Time flies. Well, they did end up going bankrupt.
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