No surprise these days with the doom and gloom over GM. Interesting to note - stock is at a decades low, and without the suspension of the dividend, it has a nice return (about 9%). Some analysts are suggesting a "buy" on GMAC bonds that gives a little bit higher return. Is GM stock worth a risk? I think so.
Seems that GM is going in spurts these last 4 quarters. My thoughts are that the new models might actually spurn some spending in the new year, within the first 6 months anyways. With Kerkorian getting his seat on the board, and a mediocre restructuring plan, I think its possible to get some value out of the stock for the next 6 months.
The big thing missing in GM's plan, is exciting models. Keep in mind GM, that stylish, affordable, reliable cars are what the public needs. GM is not in a position to challenge DCX with designs like the 300. The formula has worked well for Toyota and Honda, both which started out with the affordable/reliable route first, before they moved into styling and going after market segments.
GM, remember the KISS method - Keep it Simple, Stupid. I'll revisit GM down the road, pending developments with Delphi too.
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