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Momintn

Momintn
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  • GM: A Playbook For Trading Recall [View article]
    Not really. Most stocks appear to be fairly valued if not over valued. An investment is when you buy something at a good price. Usually it's news like this that you need to take advantage of to get cheaper prices.
    Mar 12, 2014. 03:53 PM | 3 Likes Like |Link to Comment
  • GM: A Playbook For Trading Recall [View article]
    I don't think GM will go below $34. $33 was the IPO price. The sales in China were very good and the last earnings report beat expectations. There is a huge amount of PUTs that expire this Friday and I don't think the market makers are going to pay out any more money than they have to. I think GM will head back to $36.50 - $37 by April. The ex-dividend date is also this Friday and some traders just go after the dividends. The long-term growth rate for GM earnings is anticipated to be between 15.5% and 19.1% depending on whether you look at MSN Money or Yahoo Finance. 2015 looks to be an amazing year with 30% growth so accumulating the stock for the long term is a good idea.
    The reason I don't think GM will follow Toyota's trading path is because the situations are quite different. The old GM went bankrupt and the new GM is not liable for any accidents of former cars made by the old GM. The current GM models in production now do not use the same ignition switch. As for the consumer, they may take GM up on the $500 trade-in offer on the recalled models. The government investigates and fines companies; that's about it.
    Mar 12, 2014. 02:53 PM | 2 Likes Like |Link to Comment
  • DOJ starts criminal probe into GM over ignition switches [View news story]
    Actually look at the huge volume of PUTs. I do believe all the shorts are bombarding the news.
    http://bit.ly/TwklWw
    Ex-dividend date is Friday for GM. Shorts pay the dividend to the real shareholders.
    S&P has GM as a 5 star stock and their last report Mar 8, 2014 shows that they raised their rating on the stock to Strong Buy on Mar 6.
    I'm not sure what is going to happen in the short term. But long term, it's a good dividend stock.
    Mar 12, 2014. 11:52 AM | 1 Like Like |Link to Comment
  • DOJ starts criminal probe into GM over ignition switches [View news story]
    Read BAC/ML's report on GM.
    Unfortunate tragedy, but impact on stock likely limited ...

    Reserves are robust, repairs likely more than covered
    GM reserves about $500 per vehicle wholesaled for recalls and similar costs for the
    lifetime of a vehicle, which in total equates to about $3bn annually. Total reserves
    at the end of 2013 stand at about $7.2bn. We’d estimate the cost of the repair at
    less than $50 per occurrence including labor, so on a base of 1.6mm vehicles the
    total cost of repairs would be about $80mm, well below existing reserves.

    Vehicles no longer sold in US so impact on volume is limited...

    Sentiment may take time to recover...

    BAC/ML still have a Buy rating on GM
    Mar 12, 2014. 10:43 AM | Likes Like |Link to Comment
  • Recall risks run high for GM [View news story]
    Read BAC/ML's report on GM.
    Unfortunate tragedy, but impact on stock likely limited ...

    Reserves are robust, repairs likely more than covered
    GM reserves about $500 per vehicle wholesaled for recalls and similar costs for the
    lifetime of a vehicle, which in total equates to about $3bn annually. Total reserves
    at the end of 2013 stand at about $7.2bn. We’d estimate the cost of the repair at
    less than $50 per occurrence including labor, so on a base of 1.6mm vehicles the
    total cost of repairs would be about $80mm, well below existing reserves.

    Vehicles no longer sold in US so impact on volume is limited...

    Sentiment may take time to recover...
    Mar 12, 2014. 10:32 AM | 1 Like Like |Link to Comment
  • DOJ starts criminal probe into GM over ignition switches [View news story]
    A similar criminal investigation of Toyota's sudden acceleration recalls by the U.S. attorney in New York has been ongoing since Toyota's multiple recalls in 2009 and 2010. Nothing has resulted from it.
    Mar 12, 2014. 10:27 AM | Likes Like |Link to Comment
  • Recall risks run high for GM [View news story]
    Yes it was in the bankruptcy terms. They are likely going to be fined. However from what I read the investigations were inconclusive: some accidents had ignition switch in the on position, in the accessory position, and a few in the off position. They thought the drivers may have hit the key during the accident. Some weren't wearing a seat belt. Some air bags didn't deploy and some did.
    The problem with the switch was from Delphi who improved it in 2006 but didn't change the part number, so GM was unaware that a potential problem had been corrected.
    Delphi went through bankruptcy around that time. I'd definitely get out of DLPH if I were in it.
    Mar 12, 2014. 12:03 AM | Likes Like |Link to Comment
  • Pfizer's Coming Superdrug [View article]
    61% are localized so I assume 39% are stage 2 or higher. My cousin was diagnosed with stage 2 at the age of 44 and died at the age of 49. So even the 5 year survival rate doesn't mean a person is cured. The disease spreads to other organs and to the bones. Her cancer was HER2- so this chemo may have been what she needed. She did many other chemos.
    Mar 11, 2014. 11:43 PM | Likes Like |Link to Comment
  • McDonald's: A Good Addition To The Dividend Portfolio? [View article]
    Because the burgers make us throw up. They are gross! Someone I know recently had a free coupon and ate one, and had an attack of her pancreas. If I had to go there, I'd eat the grilled chicken sandwich. But if I wanted a burger, I'd go anywhere else.
    Mar 11, 2014. 11:20 PM | Likes Like |Link to Comment
  • Recall risks run high for GM [View news story]
    Under terms of its 2009 bankruptcy, GM is free from liability for injuries arising before its bankruptcy.
    Mar 11, 2014. 04:37 PM | Likes Like |Link to Comment
  • Recall risks run high for GM [View news story]
    The new GM is not liable for the old GM's products. This investigation isn't going to do much to GM other than a possible fine. And we know how low fines are. Congress has such a low job approval rating that they put on these shows hoping to appear that they care about people and do something. On average, over 40,000 people die every year in car accidents in the USA. If there were a major problem with ignition switches, there would be more than 13 deaths in total. And those 13 cars include Saturns and Pontiacs that are no longer in production. All of these cars were manufactured before the new GM came into existence. The recall covers the 2005-07 Chevrolet Cobalt and Pontiac G5, 2003-07 Saturn Ion, 2006-07 Chevrolet HHR, 2006-07 Pontiac Solstice and 2007 Saturn Sky. I remember replacing ignition switches in at least 2 of our cars in the past decade that were not GM cars. I have also had cars die while I was driving because of alternators and low batteries. I have had cars die on me and I didn't run off the road. In my opinion, you want to buy GM stock on this dip.
    Mar 11, 2014. 04:30 PM | 1 Like Like |Link to Comment
  • McDonald's: A Good Addition To The Dividend Portfolio? [View article]
    I think this is your chance to sell MCD and JCP if you own them today. JCP is very risky. Our Sears was a better store and is closing here at a major regional mall. I would not own JCP. MCD is a much better company but eating there in the USA is very out-of-favor. I would never order a hamburger there or let my kids eat them either. And now that chicken can be processed overseas, I think people will avoid their chicken nuggets as well.
    Mar 11, 2014. 02:07 PM | Likes Like |Link to Comment
  • IBM: A Few Reasons To Consider Buying [View article]
    On another article, I asked who made more money than IBM? An answer gave me only 2 which were Apple and Microsoft. Apple's P/E is 13.3 and Microsoft's P/E is 14. So clearly IBM is cheaper. When you are investing in stocks for the long term, you should consider the valuation more than the sentiment. When the sentiment changes, the price will already be higher. I think all three stocks should be in every portfolio for the long term but I think Apple is going to have a difficult time with cellphone competition and Microsoft is going to have a difficult time getting away from the opinion of Windows 8, which means IBM is indeed the better stock for investment today.
    Mar 11, 2014. 01:32 PM | Likes Like |Link to Comment
  • A Few More Reasons Why I Am Bullish On J.C. Penney [View article]
    The brand image is not good. The merchandise now looks lower quality than Sears.
    Mar 6, 2014. 03:33 PM | 1 Like Like |Link to Comment
  • Stocks Are Two-Faced, And One Is A Pathological Liar [View article]
    I think the problem for LKQ is the valuation and the run it's had. It's difficult for someone like myself to buy an auto parts company at twice the forward P/E as GM. I realize that GM doesn't have the growth in earnings but everyone has heard of GM and GM pays a good dividend.
    Mar 6, 2014. 03:30 PM | 1 Like Like |Link to Comment
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