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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (63430)	5/4/2005 9:07:34 PM
From: Slagle	Respond to of 74559

Taikun, Re: GM Bonds. There are a bunch of these GM and GMAC quarterly intrest bonds that trade like stocks: XGM,BGM,HGM,GMS for GM and GKM,GJM,GOM and GMA for GMAC and they all have different dividend dates. Maybe you could dodge the divvy by selecting the right one for your shorting period. These bonds rose 6% today on double and triple volume so somebody must have been short. Bet all that buying wasn't widows and orphans. <G> The yield is now around 10% so the quarterly bite would be about 2.5% if you were short. Don't think I would short them now though. Cramer is saying buy GM as there are whole armies of shorts trying to cover. GM was up 18% today. The GM close before the big gap down on March 16th was 33.72. With todays close at 32.80 it is still a dollar below the gap down but way above the high of the 16th which was 30.25. There may be some shorts above the gap down that would still have a gain. Wonder if they will cover? Looks like these bonds have a similar pattern. Slagle