Good time to buy Ford/GM stock?

[JCE]

As of 10/09/2008

Ford: $2.08
GM: $4.76
Chrysler: $0.00 [not trading?]

So I pose the question for you people in America. Should you buy one of these two stocks now that they are REALLY cheap? Or wait another week for the market to completely bottom out? The US Goverment won't allow these to automakers to go bankrupt so your money is fairly safe. I'm seriously considering getting about 50-100 shares of Ford next week.

Thoughts?

 

[Omnis]

Don't take this as advice or anything, but I think buying dollar-denominated stocks is a real sketchy thing to do right now.

 

[Joey D]

I wouldn't bother. Putting you money into the market now is a good idea since when it does rebound you'll make some money but the automotive industry only moves very slowly. You be better off researching companies and finding a real winner. I just pumped a bunch of my money into my mutual funds this afternoon, I'm hoping to ride the wave when the market comes back up to get a nice return several years down the road.

I would vote in the poll but my option isn't there. I say no, but I don't think it's hopeless for them or the US.

 

[YSSMAN]

Being the GM-lover that I am, I may get into some of their stock sooner than later. Thing is, I want the market to be stable before I consider throwing any money at it right now. If it'll stick, I'll probably get some GM with a small pitter patter of otherwise devalued stocks to make it a little more diverse.

We'll wait an see. I avoided getting in a few months ago when everyone was like "Oh hey, the market can only go up! Up! Up!" and in the end, its a "told-ya-so" moment for people who followed that advice.

EDIT:

Chrysler isn't traded because it is now a privately held company.

 

[McLaren]

I wouldn't think of buying stock of any kind. I believe a few days ago, the stock market dropped to a point that hadn't been seen in 5 years. If anything, I'd say wait next year.

 

[Sureboss]

I don't think people would consider buying stock without knowing the risks, Reventon. But the point is that the economies have always worked on a cyclical basis. So it's a risk, but the markets and economies will recover.

 

[Joey D]

I wouldn't think of buying stock of any kind. I believe a few days ago, the stock market dropped to a point that hadn't been seen in 5 years. If anything, I'd say wait next year.

This is the perfect time to buy stock, the market is low. You don't want to buy stock when the market is high since your returns aren't as good. I bought low, sold high and was able to afford two new cars (the Blazer and the Cooper) and still was able to put money into mutual funds afterwards. The market is fairly easy if you are doing basic investing in companies you've research out before hand.

 

[niky]

It's an interesting and fairly painless proposition... when are they getting the bailout money?

I dunno... I'd wait to see if they could get a little lower before I buy. Ford's European operations are in better shape than GMs (I think, for no better reason than wishful thinking) but I think GM's aggressive expansion in Asia is the better ticket for future returns. Either of the two will do. Not like they could get that much lower (the difference between very little and nothing at all isn't very big).

 

[Tornado]

Wasn't GM stock like $8 on Monday? Damn. Since the companies are guaranteed not to be allowed bankruptcy, now is the time to buy. Don't be greedy about it, and you should walk away better off.

Chrysler: $0.00 [not trading?]

Private company.

 

[JCE]

Ford's @ $2.02 today...man that's too good to pass up. I need to get some shares next week when I get paid.

 

[sn00pie]

This is last year.

And this today.

Typically it will keep fluctuating on a daily rate like that for a while. So you'll make, what? A potential of <25 dollars max with your 100 shares. Enjoy...

 

[Zrow]

Your options suck. Why tether "it's hopeless for the US" into the "I wouldn't buy GM or Ford stock right now" answer?

On topic, I probably wouldn't buy either - I don't think we're at the bottom of this hole yet. Is bankruptcy a real possibility here?

 

[JCE]

I'm not looking for a short term answer. If/when I buy my 50-100 (or more) shares its for the long haul. And I'd continue to buy in periodically up to a certain point. Plus, I can say I'm part owner in Ford/GM by being a shareholder.

 

[Keef]

I'm sure the value of both companies will go up in the future, providing they don't go bankrupt, obviously. When GM's Volt comes out it'll hurt the company's wallet because they're going to lose money on the deal, but I think it'll bolster the public's confidence in GM as an innovative company and make them more liked. Ford has plans to bring some European designs to America, and making "world cars" should save them money. Also, it'll give us Americans cars we actually want to buy. It'll get better eventually, but this recession is going to be going on for a while. I'm convinced it's going to turn into a depression. After all, the Communists have come to the aid of more than a few Capitalist countries already. That's gotta stand for something.

If you pick the right stock and have loads of money to dump into it you could surely make money by day trading with the wild fluctuations lately. It'd ridiculous. That's what big money investors are doing. They're not investing anymore, they simply trying to make money. It's making the problem even worse.

 

[YSSMAN]

The only problem now is that GM is in talks with Cerberus to merge with Chrysler, and while the stock value did increase a bit today, its hard to know what will work there.

We'll see kids. I'm still waiting a while before jumping in for either...

 

[a6m5]

Wasn't GM stock like $8 on Monday? Damn.

Ford took a similar dip as well. Just around week ago, their 'lows' were mid-to-high 4's. Now, it's about half of that. Damn, indeed.

Since the companies are guaranteed not to be allowed bankruptcy, now is the time to buy. Don't be greedy about it, and you should walk away better off.

I believe that is the million dollar question. Will they survive out of this mess? Most believe so, including myself. If these companies are going to make it out of this alive, it is the time to buy, or it is very close to it. People who will be buying Ford/GM stocks need to remember that this could be a longterm investment. A return could be very handsome, but it could tie up your fund for awhile.

On topic, I probably wouldn't buy either - I don't think we're at the bottom of this hole yet. Is bankruptcy a real possibility here?

I was just watching a thing with Charlie Rose, where he had few people from Bloomberg, other media(sorry, I was half asleep). One said that there is a solid chance that all three could see bankruptcy. Another one claimed that they probably won't, and I believe he said that one of the companies could be in trouble, depending on the outcome of 2009. Again, sorry I didn't catch the smaller details, but just what I heard was scary enough. This is for certain though, the guy who stopped the bankruptcy theory, he did not actually deny that there is a chance of all three going through bankruptcy in the end. That tells me that most of the experts out there are pretty confused about it as well.

 

[JCE]

These three companies employ too many workers and are too important to the country as a whole to see bankruptcy. Well at least GM and Ford are.

 

[YSSMAN]

...One said that there is a solid chance that all three could see bankruptcy. Another one claimed that they probably won't, and I believe he said that one of the companies could be in trouble, depending on the outcome of 2009...

Depending on who you talk to, people are giving Cerberus/Chrysler somewhere around six to nine months before they're in dire straights, and about 18-24 months before we really need to start worrying about GM and Ford. What it comes down to rather simply is that until this credit crunch is sorted out, not many people are going to buy cars... And that goes for everyone, no one is being sparred under these circumstances. Toyota has drastically lowered their expectations for this year, and I imagine that Honda, VW, DamilerBenz, BMW and Hyundai are doing the same as well.

Either way, with some of the things I've been seeing, a lot of analysts don't think GM or Ford could return to profitability until 2011 at the earliest, and we won't even see the full-effect of cars like the Volt or the Fiesta/Focus until 2013...

 

[Tornado]

Will they survive out of this mess?

The U.S. government would sell off the military if it meant keeping the big three from going bust.

So you'll make, what? A potential of <25 dollars max with your 100 shares. Enjoy...

I really don't think that anyone would be foolish enough to buy 100 shares of any stock and then sell it the next day when it goes up 4 cents. This is a "sell it in a couple years" purchase.

 

[Casio]

So did you get in in time? I GM stock almost went to $8 yesterday.

 

[Omnis]

So did you get in in time? I GM stock almost went to $8 yesterday.

The more important question is if he got out in time.

 

[JCE]

I didn't get any stock. I don't have the money for it right now. I may have missed my window of opportunity. Ford's trading @ $2.45 right now, GM's got too expensive to buy.

 

[Joey D]

GM got to expensive? It's only 6.54 a share right now, that's dirt cheap considering the 52 week high was 42.84.

 

[BayConRong]

I think i would rather buy the GM stock, they are coming out with thier Volt and i think that will really raise they stock, and as you said it's unlikely that the government will let either company bottom out.

 

[Joey D]

It will only raise the stock if it sells en mass, which it won't. The Volt is not the car that's going to save GM, although many years down the road the technology from it might help. Electric cars still rely on fossil fuel generated electricity to run.

 

[BayConRong]

Not in Washington so much. we rely on hydroelectricity.

 

[YSSMAN]

I think i would rather buy the GM stock...

Between it and Ford, yes, GM is the "safe" choice. The problem here is that the Cerberus/Chrysler deal is looming over their head. I won't buy in until I know for sure that it won't happen.