This is a major automobile manufacturer, and regardless if it's GM or Ford the U.S. would never allow these companies to go away.
You however, have brought up an interesting question. Should you buy while its cheap.
Many investors just don't get it. What they fail to understand is that if you like a company, feel comfortable with management and are willing to hold onto it to reap the financial benefits of it. Then why not buy it at its current price.
This is the same company that people were buying when trading at $35.00 October 2007. Yes the economy isn't doing so well. Yes, gas prices are on the rise. Yes, they have had loses with GMAC financing the mortgage debacle. But again, if you liked it at $35.00, then wouldn't you like it even more at $13.19???
But hold the phone! People are going to invest in this company when they feel more comfortable with it. What does that mean? It means that the share price is selling at too huge of a discount, they want it to go up slightly, then they will buy.
However, you have to be a contrarian. Be greedy when others are being fearful. Be able to stick your neck out there once in awhile.
If I had excess funds I would probably drop a couple grand into this company. And wait it out long-term. But, I wouldn't double down on it, if the value drops to half of $13.19. I would place monies in other investments and start to diversify a bit. No I wouldn't buy oil stocks, no I wouldn't buy gold. I would place some monies into discount retailers, alcohol manufacturers and other retail and bank sectors.
Cause "when", not "if" the economy comes around. These investements are going to provide amazing returns.
Keep in mind that you do not realize a gain or a loss until the position is sold.
I would do it. But then again thats my two cents.
