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

To: Spekulatius who wrote (31345)	7/1/2008 11:31:50 PM
From: Paul Senior	Respond to of 78748

GM stock's fall sure looks like it's the harbinger for a death spiral for General Motors. Last month has been brutal for the stock (and company, apparently). Nobody I see says the stock/business situation is going to get better. I'll hold my GM shares and endure a little more pain. Meanwhile I still like ALV - people going into smaller cars will give added importance to the many airbags made by ALV. I've added a few more ALV shares to my losing position. Still also holding LEA. finance.yahoo.com ------------ Rental car companies: DTG missed its forecast and the stock drop today has been brutal. I hold that one. Also Hertz. I've more faith in an eventual recovery for HTZ because of its size and diversity (rental equipment). I am adding to that one as it keeps dropping to new lows. finance.yahoo.com 2008 has become a very difficult time in which to buy stocks and not see subsequent declines in the purchased stock or not experience declines in overall year-to-date portfolio performance. For me anyway.

To: Spekulatius who wrote (31345)	7/1/2008 11:34:17 PM
From: Madharry	Read Replies (2) \| Respond to of 78748

I am curious as to your basis for suggesting that GM will likely file for bankruptcy but the preferred might be a good speculation. Unless your are familiar with the ins and outs of the gmac portfolio and have done a thorough analysis of GM pension fundings and assets, which I admit to be clueless about, how can you to offer a reasoned opinion about this? I would assume that gm has lots of gm stock in their pension plan and if gm goes bk that will increase the underfunding of the pension plan by a large amount. I dont presume to know bankruptcy law but as a layperson with a little court experience i dont see how the court will favor preferred shareholders over employee pensions. people familiar with gm and or pension law feel free to comment.