For longtime readers of this blog, it was good to see the stock price finally get back above $26.75 -- the price at which I first recommended the stock in April 2005. (My personal average cost for GM is just under $33. I first bought shares in the company at $37 before launching Controlled Greed.) The stock closed Friday at $28.08.
It's gained nearly 50% since the middle of last month. Meaning don't be surprised if the stock sees some profit-taking. Nothing is a straight line up and that's certainly going to be the case with GM.
I'm holding the stock. The company is a big position for me and I remain confident that ultimately we'll see significant price appreciation in the shares over time. Until then, the company still boasts a dividend yield of almost 4% -- even after halving its dividend.
And as I've stated numerous times: GM working out as an investment does not require substantial improvement in its North American car and truck business.
GM 1-yr chart: