General Motors (GM) and Ford (F) Shares Back to Where They Began
Nov 21st, 2008 | By Andrew Snyder | Category: Financial NewsCongress now tells us that it has put off a vote on any Detroit bailout until after Thanksgiving. It warns the Big Three that it had better come up with a viable plan to use the money to get back on track or the check will not be written.
After surging more than 40% earlier Thursday, shares of Ford (NYSE:F) were back to where they began the day. General Motors (NYSE:GM) is sitting on a 6% gain on the day.
It looks like it is politics as usual in our nation’s capital.
There is big news out of Washington. Congressional insiders are telling us that key senators have reached a compromise that will allow the Big Three to tap into $25 billion in loans originally set aside for the automakers to re-tool their factories.
While this is not the $25 billion grab at TARP money Detroit was on its knees begging for yesterday, it is enough to get investors interested in the industry once again. As I write, Ford (NYSE:F) and General Motors (NYSE:GM) are up by 40% and 25%, respectively. They are pulling the major equity indices with them.
Obviously, there is much more to this story than initial reports indicate. As we get the details, we will pass them on.
For now, continue to hold onto those shares of Ford I recommended buying several weeks ago. If Congress makes good on these rumors, they could be profitable quite soon.
Source: Washington bows: General Motors (GM) and Ford (F) shares soar
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I do not understand why F stock is not rising as fast or faster than GM. Ford seemed to be in good enough shape to say they did not need a bailout, just a posssible loan if the other 2 go belly up. So GM gets a bailout and its stock is passing F like a hare passes a turtle. Everyone knows that GM will be back asking for more next year. SO why isnt F surpassing GM? If anyone knows the answer please post it