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

To: E_K_S who wrote (20510)	1/27/2005 5:35:52 PM
From: hivemind	Respond to of 78659

I have found GM interesting to look into precisely because of the yield. But I'm always afraid to enter. They generate huge operating cash flow but over the last ten years even more cash goes for capex. And yet sales trends are not favorable. So if the capex does not help to produce sales increases, or reduce production costs, etc, seems like just treading water. Then there is the huge and growing debt load. I'm probably too much of a novice to see the benefits of buying GM at this point, but it seems to me the risk factors outweigh the potential. P/B is low historically, but who can say if it will return to prior levels or if it is permanently adjusted as is.

To: E_K_S who wrote (20510)	1/28/2005 11:40:12 AM
From: Suma	Read Replies (1) \| Respond to of 78659

Good analysis on GM.. Thanks.. Good nibble in here but this is a treacherous market. Outcome of elections in Iraq are going to put a lid on everything for awhile methinks.

To: E_K_S who wrote (20510)	1/28/2005 12:25:14 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78659

Hard to find positive comments on GM in the media. I'm still holding a losing position, considering selling, but maybe with all the negativity I believe I am seeing as regards the General, a bottom is near - so I'll hold. Figure I'll add under $30 - if stock gets that low and I don't get scared out before then. If forward p/e on GM is 10, that's about what it is for Toyota. While GM is developing hybrids, TM is already there - or at least much further ahead. TM revenue is still increasing while GM's isn't. At current prices (TM's stock down a bit past few days) and the outlook for GM vs. TM as I see it - I'm no expert though - I'd rather have TM, and I've added a few shares today. My intent is to keep building up my TM bet and hope TM performance - company and stock - offsets any losses in my small GM position.

To: E_K_S who wrote (20510)	3/9/2005 11:20:40 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78659

E_K_S: GM. I've lost my stomach for this one - trend down in stock price is too much for me - not willing to take more losses here. For me, this trend makes it doubly difficult for me to see how or have hope that GM business is going to recover in next couple of years. (But it very well may.) Closed out my position for now. --- Also car related, I'm slowly exiting losing position in aluminum wheel supplier, Superior Industries Int'l (SU). Superb balance sheet imo, but company apparently hit by very, very strong price competition coupled with declining demand from OEM's.