The Detroit automakers deserve to go broke, says Bill Bonner. They were well positioned in the biggest market for autos in the world, but still managed to squander all their money. And now they want the taxpayers to rescue them.
Gold and silver didn’t do a lot in early Far East trading on Tuesday. The price for both metals bottomed very early in London…and from there a solid rally in both metals ensued…which ended shortly after the Comex opened for business…and that was it for the day.
If you like the car, will you love the company?
When it comes to Ford Motor Co. (F), a Canadian car dealer bet a month’s sales on that premise.
Rose City Ford dealership owner John Chisholm offered 100 shares of Ford stock to anyone who bought a new or used vehicle from the dealership during the month of November, the Windsor Star newspaper reported. Chisholm, the president and general manager of Rose City, said he got the idea from a General Motors Co. (GM) dealership in Texas that offered GM shares for each vehicle sold. So Chisholm opted to try it in Windsor, the Ontario, Canada city where Ford has both a long history and deep community roots.
“What a great way to show…
GM is essentially already bankrupt, says Horacio Marquez. And it has been for years. This clearly makes the company one to avoid for investors. But Horacio says there are still some ways for those with a big risk appetite to make big profits with the giant automaker.
It is looking like it will be a big week for Detroit. The nation’s automakers are due back in Washington to hopefully conclude their welfare pandering.
Big media has been beating the drum that if Detroit built more fuel-efficient vehicles, buyers would flock back to their showrooms. But there is an inherent lie in this line of thinking. And if investors buy into this lie, they could end up on the wrong side of the trade when it comes to considering the major American auto makers any time in the future.
Adam Lass says the vast majority of retailers are ripe for shorting as a new era of thrift grips the US. Aside from bargain stores like Wal-Mart (NYSE:WMT) and the 99 Cents Only Store (NYSE:NDN), Adam says investors should buy put options on retail firms. And the best time to do this is when they talk of “better times to come”…
Billionaire investor Kirk Kerkorian is selling his 6.5% stake in Ford (NYSE:F) for a big loss. Andrew Snyder says it would be crazy for the average investor to follow Kerkorian. He says Ford is dirt cheap right now, and could be in line for a 50% up-move.
– The Senate has passed a modified version of the $700 billion bailout bill Congress shot down on Monday. The bill passed 74 to 25.
– The bill passed by the Senate includes provisions to increase the FDIC’s bank deposit insurance limits and a $150.5 billion package tax cuts.
– Despite the passing of the bill in the upper house, US stock futures slipped this morning. MarketWatch reports that “S&P 500 futures fell 9.9 points to 1,158.50 and Nasdaq 100 futures dropped 5.5 points to 1,573.25. Dow industrial futures dropped 71 points.”
When stocks are beaten down, many investors are tempted to bottom fish for bargains. There is nothing wrong with this. There are major profits to be made in bear markets.
But Lynn Carpenter in Investor’s Daily Edge cautions investors against confusing a low stock price with a bargain: “Potential, not price, is the metric to follow when you’re tempted to bottom fish.”
That’s why insurer American International Group (NYSE:AIG) is a potential bargain and Ford Motor Company (NYSE:F) is not…