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

To: Madharry who wrote (28211)	9/25/2007 1:22:51 AM
From: Bill Wexler	Read Replies (1) \| Respond to of 78753

I think in GM's case, institutional investors are betting that they can get out of their long-term (health/pension) liabilities. Couple that with the fact that they are actually able to sell cars in China. I personally don't have a good grip on everything that's going on here so I wouldn't touch this one long or short. AMZN: I never short strictly on "overvaluation". I would argue that BKS is a far safer short than AMZN at this point...for the same reasons I shorted BGP in the low 20's. Retail bookstores have become a zero-growth biz. AMZN is the category-killer here. I don't think bookstores will go extinct (though I wouldn't be surprised if the BGP chain disappeared), but they aren't good investments at these prices. The decline is further exacerbated by the fact that big-box retail - in general - will weaken over the next few years as a direct result of the credit/housing bubble disaster.