Saturday, May 30, 2009

GM a Buy?

GM closed yesterday at $.80 a share, giving the company a total market capitalization of about $550M---put in perspective, half the size of Toro Lawnmowers. With Barack Obama as CEO, the Federal Reserve acting as a pliant banker and the citizens of the US picking up the bill, is there any doubt that GM will recover? At least to a, say billion dollar company (doubling your money). How about a $10B company (1/4 of what it was)--20 times your money?

All of us should have diversified, balanced portfolios....which to me means you need to have a little bit of high end risk. This looks to me like a good place to take some risk.


Goldwater's Ghost said...

I would rather invest my money in Toro lawnmowers.

The Conservative Wahoo said...

Do both.

Mudge said...

How about a merger? Then you could drive your car around the yard and have a beautiful lawn to boot!

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