Is now a good time to buy GM stock?

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b_rtm_n

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I am considering buying some GM stock, somewhere between 300-1000 dollars worth. Should I wait to find out if they get bailed out first and the price is low (about 4.90) or wait for the stock to climb again ( this time last year it was almost $30). I have plenty of time to let it sit I just turned 38 and will retire from the USAF in 2010 to start another career.
 
Tomorrow there will be a meeting with the head honchos from GM with Congress, and they are going to bring with them a report on how they will reorganize the company if Congress gives them the money they are requesting...I would check out the market tomorrow...if it is in a downturn after they speak at the meeting, you know that all is not good, if it goes up 25 cents or so, then you know it will go up more...I think it is a good stock. In an economy like this, I would recommend anyone who is dipping their toes in the stock market is to buy Blue Chip Stocks...They are so depressed right now and you will never see this again...Buy a little bit at a time...GM, Ford, Cisco, Microsoft; Citi, Pfizer; Merck; Archer Daniels; Clorox; Johnson & Johnson; Proctor & Gamble; Walmart; Intel; Yahoo; and so on...You should go into Direct Investment Plans...go into wall-street.com and look for list of companies that have direct investment plans...and that cuts out broker fees and you can buy direct from company or from Computer Share.com who handles some companies...I bought 175 shares of Pfizer that way...and many other stocks...you can buy as little as a share at a time..It is wonderful for the small investor.
 
GM stock is a horrible investment. They have a ton of debt, hardly any cash flow and will most likely fail. If you are going to buy a stock, look for a company that will actually make a profit.
 
That's a matter of your faith in the company and especially the management.
No bail out - you lose your money.
Bail out - The US government will probably own a sizable amount of the company stock so your shares will be diluted.
Bail out or no bail out - no dividends will be paid.

I would only use your mad money, not money you may need in the near future.
Good luck.
 
If you are just starting to invets, why do you want to play in the hardest part of the game (political arbitrage)? Better to take your money to Las Vegas, at least you can get a free meal out of it

GM will NEVER see $30 again, more lilkely it goes to zero first. I think it may be way overpriced at $5.
 
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