HandsOn

Re: Think Some Options on GM is Good?

weiwentg — Tue, 25 Nov 2008 04:01:06 GMT

I think that GM's equity will be wiped out or severely diluted in a government rescue package - not that they actually have any equity.

If you're inclined to speculate, Toan Tran mentioned in his farewell letter to M* Growthinvestor subscribers that their bonds might offer some value even in a bankruptcy or government bailout; for example, AIG's bonds are still paying. However, even that is a bit too speculative for me.

Re: Think Some Options on GM is Good?

Limoman — Thu, 20 Nov 2008 12:09:13 GMT

Auto makers stock should go up at least 500% if this is Enacted:

Washington, DC - President-elect Barack Obama and the Democrat-controlled Congress are considering sweeping new legislation: TheAmericans With No Abilities Act. AWNAA is being hailed as a major legislative goal by advocates of the millions of Americans who lack any real skills or ambition.

'Roughly 50 percent of Americans do not possess the competence and drive necessary to carve out a meaningful role for themselves in society,' said California Senator Barbara Boxer. 'We can no longer stand by and allow People of Inability to be ridiculed and passed over. With this legislation, employers will no longer be able to grant special favors to a small group of workers, simply because they have some idea of what they are doing.'

In a Capitol Hill press conference, House Majority Leader Nancy Pelosi and Senate Majority Leader Harry Reid pointed to the success of the U.S. Postal Service, which has a long-standing policy of providing opportunity without regard to performance. Approximately 74 percent of postal employees lack any job skills, making this agency the single largest U.S employer of Persons of Inability.

Private-sector industries with good records of non-discrimination against the Inept include retail sales (72%), the airline industry (68%), and home improvement 'warehouse' stores (65%). At the state government level, the Department of Motor Vehicles also has an excellent record of hiring Persons of Inability (63%).

Under The Americans With No Abilities Act, more than 25 million 'middle man' positions will be created, with important-sounding titles but little real responsibility, thus providing an illusory sense of purpose and performance.

Mandatory non-performance-based raises and promotions will be given so as to guarantee upward mobility for even the most unremarkable employees. The legislation provides substantial tax breaks to corporations that promote a significant number of Persons of Inability into middle-management positions, and gives a tax credit to small and medium-sized businesses that agree to hire one clueless worker for every two talented hires.

Finally, the AWNAA contains tough new measures to make it more difficult to discriminate against the non-abled, banning, for example, discriminatory interview questions such as, 'Do you have any skills or experience that relate to this job?'

'As a Non-abled person, I can't be expected to keep up with people who have something going for them,' said Mary Lou Gertz, who lost her position as a lug-nut twister at the GM plant in Flint, Michigan , due to her inability to remember 'rightey tightey, lefty loosey.' 'This new law should be real good for people like me,' Gertz added. With the passage of this bill, Gertz and millions of other untalented citizens will finally see a light at the end of the tunnel.

Said Senator Dick Durbin (D-IL): 'As a Senator with no abilities, I believe the same privileges that elected officials enjoy ought to be extended to every American with no abilities. It is our duty as lawmakers to provide each and every American citizen, regardless of his or her inadequacy, with some sort of space to take up in this great nation and a good salary for doing so.

The Bail out for The Auto makers is Sorely needed to help keep our "no abilities" workers on the job and maintaining their High standard of living (earning an Average of $50 hr in wages & benefits).. As well as when we Close plants to pay them 80% of their Salaries and Benefits to keep them off the Unemployment lines or going out and getting Other Jobs!

This will also Help The States they live in from not Having to provide UnEmployment , Welfare and Public aid costs..and allow them the $ needed to Support their Local support their drinking establishments.. And seeing as 10% of our Americans pay 90% of the taxes, we can have them pay more taxes to pay 100% of taxes needed to fund this program by just eliminating the Short & the Long Term Capital Gains tax and use the "Ordinary Income Tax" with a Minimum of 21% , whichever is greater of the 2..

Inturn, this will also benefit our Immigrants ( both Legal and Illegal) to retain jobs as well and not loose them to Laid off Auto Workers..

Republicans want the Auto Co.'s to Move ALL their Plants down to Mexico and India, where wages are ave. of $2/hr , but inturn, Auto Co.'s pay 33% taxes on their Profits to the Mexican Gov't. , that inturn, Mexico will no longer be a Welfare State to the US Gov't and allow Hundreds of Billions to be used by Republicans to Pay for More Earmarks and Bail out $ to Only those Co.'s that support the GOP..whenever their profits fall At or below +25% a yr...

Republicans also will receive unlimited Funding to the GOP for the next 100 yrs and allow the doubling of their Current salaries and Benefits as well..from the Auto makers..( A Japanese Tradition we should be adopting )

Re: Some thoughts on that subject . . .

Limoman — Mon, 17 Nov 2008 23:34:50 GMT

RE; On GM

Obama is in a Tight spot.. UAW spent Millions supporting him

I think a Compromise plan will insue...

GM probably wants the Fed to be the Bad Guy and change Union deals ..or File Chapter 11 or 13 and go forward... ?

I'm watching to buy Stock/Options on it...

the state of Mich can't afford another 100,000 laid off workers getting Unemployment..cks. , half the state already is...lol

Now if Mich. were to tax it's Universities/Colleges? It Would pay off it's budget debts and be one of the wealthiest states in the union.. While Mich. U and M.State enjoy their Multi Billion endowments and outrageous costs.and over paid teachers pay and benefits.. .like all the rest like them..

While on the Auto Front in regards to FORD?

Here's something else to think about:

Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads how Toyota avoided UAW demands....

------------

IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY !

Some thoughts on that subject . . .

mgfreema — Fri, 14 Nov 2008 05:21:22 GMT

The governor of Michigan has been in office since 2003.

Michigan has deteriorated into an economic basket case during that period.

I've been told the governor of Michigan has recently been appointed as an economic advisor to President-elect Obama.

Given the above (along with a Democrat House and Senate), it seems to me the auto industry is a shoo-in for Federal taxpayer's bailout money.

Mike

Re: Think Some Options on GM is Good?

ben egbert — Thu, 13 Nov 2008 22:41:12 GMT

You guys are way over my head, but I do have some GM in one of my funds, so this is of interest to me.

In spite of this personal stake, I am not in favor of a Gov. bailout.

Ben

Re: Think Some Options on GM is Good?

Santa Cruz — Thu, 13 Nov 2008 21:16:41 GMT

General Motors Downgraded From Overweight to Neutral at JP Morgan

Hickey and Walters (Bespoke) submit:

Today's downgrade of [[GM]] from Overweight to Neutral at JP Morgan is one that you would expect to see after the close on the Friday before Memorial Day when no one is at work.

Re: Think Some Options on GM is Good?

Dr Stock — Thu, 13 Nov 2008 19:41:45 GMT

EagleTed:
Dr Stock:
Well ... a lotta folks consider Warren Buffet to be a "smart money" guy himself, and he reportedly lost $9 billion of Berkshire's money selling puts on the SPX this year.
Regards,
Doc

"Mark to market" loss or actual loss? 'Cause there's no way he got a margin call.
Pardon my ignorance, as I've never done a put or call, so my question may be obvious, but not to me.

Not an ignorant question at all. At this level, trades are made that we mere mortals can barely imagine. I don't have the details, but I believe the loss was reflected on Berkshire's 3rd quarter results. My guess would be they covered the position ... if not and these are/were long dated options, look for BRK shareholders to be grumbling about it when 4th Q. results come out. :)

Regards,

Doc

Re: Think Some Options on GM is Good?

drymartini — Thu, 13 Nov 2008 18:03:21 GMT

Limoman:
Do you think buying some long options on GM is a good idea?
James Stewart -Smart Money , thinks so..
?

Disclaimer: I have never invested in Options in my personal portfolio ever. I dont consider myself sophisticated enough yet to do so.

With disclaimer out of the way, you could even consider selling some far out of the money call options. Hopefully you own some GM stock and are not writing naked call options.

By writing far out of the money call options, you get some income for your portfolio at a time when its hard to come buy. With GM in doldrums, even with a bailout news i doubt volatility would be high enough for it to breach your far out of the money calls.

just food for thought.

Re: Think Some Options on GM is Good?

EagleTed — Thu, 13 Nov 2008 15:58:15 GMT

Dr Stock:
Well ... a lotta folks consider Warren Buffet to be a "smart money" guy himself, and he reportedly lost $9 billion of Berkshire's money selling puts on the SPX this year.
Regards,
Doc

"Mark to market" loss or actual loss? 'Cause there's no way he got a margin call.

Pardon my ignorance, as I've never done a put or call, so my question may be obvious, but not to me.

Re: Think Some Options on GM is Good?

Dr Stock — Thu, 13 Nov 2008 15:52:34 GMT

Well ... a lotta folks consider Warren Buffet to be a "smart money" guy himself, and he reportedly lost $9 billion of Berkshire's money selling puts on the SPX this year.

Regards,

Doc

Re: Think Some Options on GM is Good?

EagleTed — Thu, 13 Nov 2008 14:46:31 GMT

Sure, why not? Just remember, gambling is an addiction. Ask AIG.

Think Some Options on GM is Good?

Limoman — Thu, 13 Nov 2008 13:42:13 GMT

Do you think buying some long options on GM is a good idea?

James Stewart -Smart Money , thinks so..

For a Per Thousand Bucks the upside could be tremendous..!