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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (30373)	3/19/2008 11:16:52 AM
From: E_K_S	Read Replies (1) of 78659

Hi Paul - This one looks interesting as it tested a new multi year low last week. Their current dividend is now over 5% but it might be cut like Ford did with theirs last year. GM's debt is huge but according to Yahoo they still generate positive free flow cash flow. As interest rates are cut, GM's financing arm should be able to generate a healthy margin spread on new loans they originate. I noticed my last Buy was around $35 so I would like to double up on my very small position if we get a test of the lows again on small volume. This is a multi year recovery play and GM may again see their price in the $40's if they can work down their debt and other pension liabilities AND get a foothold in China with their different new car & truck brands. Also, it looks like the company is committed to "hybrid" car production as by 2012 1/3 of their fleet will incorporate "hybrid" technology. I have GM on my radar screen but its something I am not actively chasing to get into. I will let the price come to me and would pick up some shares below $18. EKS

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