Why I'm Holding GM For Now (GM)

It's too early to pop the champagne corks over General Motors (GM). But it's at least nice to see some good news recently concerning the auto giant.

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: