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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (7569)	6/22/1999 1:32:00 AM
From: Q.	Respond to of 78667

I own GM, not because of any clever analysis of the value of the underlying components, but simply because it was a dow-dog last summer when I bought some of those. It is still one of the 10 highest yielding Dow stocks (updated today): Rank Company Name Ticker Div Yield Price 1 Philip Morris MO $1.76 4.20% $41.88 2 Goodyear Tire & Rubber GT $1.20 2.09% $57.31 3 Caterpillar CAT $1.30 2.14% $60.88 4 General Motors GM $2.00 3.14% $63.75 5 DuPont DD $1.40 1.99% $70.19 6 Eastman Kodak EK $1.76 2.46% $71.50 7 Exxon XON $1.64 2.10% $78.25 8 Minnesota Mining & Mfg.MMM $2.24 2.48% $90.25 9 Chevron CHV $2.44 2.69% $90.69 10 JP Morgan JPM $3.96 2.91% $135.94

To: James Clarke who wrote (7569)	6/22/1999 12:03:00 PM
From: porcupine --''''>	Respond to of 78667

"Does anybody here own GM? " porc does --'''':>

To: James Clarke who wrote (7569)	6/22/1999 4:33:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 78667

James, GM does look like a very big bargain. I had several problems with it the last time I looked closely at a 10K though. (I think about a year ago) 1. Enormous post retirement liabilities that will have "hard to know" effects on true free cash flow down the line. 2. Underfunded pensions. 3. US consumption is booming almost like never before and now represents its highest percentage of US GDP ever. My guess is that with the savings rate negative, extremely high consumer debt levels, and the fullest employment in decades, US consumption levels are very vulnerable. I wouldn't trust the surface numbers nor the current earnings levels. That said, on a relative basis it's still cheap. But that's because I think most blue chip prices are nutso! Wayne