Thinking of buying some Ford and GM stock

[bmacsys]

You can get a share of GM stock for like $3.30 and a share of Ford stock for like $2.25. I can't see these stocks going anywhere but up if these companies survive. Anybody have any thoughts?

 

[mht95ranger]

I own Ford stock just for the xplan pins. Have not made any money on it but someday maybe???

 

[97ranger4x4]

I just bought 85 shares of Ford this morning, not much but i am a student and that is all I had to spare. So basically what I have been reading is that Ford should be able to weather the storm. In any case there stock is at a historical low. So if you are planning on holding onto their stock for 20+ years, which isnt a problem for me since I am 23 and plan on holding my investments for 20 to 30 years, then I think they have the possibility to be a great investment. Also I figure $200 invested now, will either pay off greatly in 20-30 years or if I loose it all then it is only 200.

GM however is a different story... GM is too far to gone for me. I wont be investing with GM because there is just to much of a chance that I will loose my investment. I say go with Ford. Ford has much less risk associated with it because it is not going to die without the bailout like GM, and even if GM gets the money, it might not be enough for long term.

 

[Evan]

You can get a share of GM stock for like $3.30 and a share of Ford stock for like $2.25. I can't see these stocks going anywhere but up if these companies survive. Anybody have any thoughts?

People used the same logic for Bear Sterns, Lehman Bros., etc.

Just because a stock has a low price per share, does not mean it's a good deal. You need to focus on the financials of the company (balance sheet, cash flow statement, etc) and with Ford and GM they're absolutely dismal.

There ARE companies out there with low share prices who have relatively solid financials.

GM and Ford are already basically bankrupt. Once the government loans run out, they're going down. Even though Ford isn't getting any money directly, for complex reasons they're still highly dependent on these gvt loans being available. Invest in them and you'll most likely loose your money. You're rate of return would probably be better with a lotto ticket.

 

[97ranger4x4]

So I was just curious if anyone ever purchased Ford. I bought it back at 2.08 a few months ago, and it is now up 75%. That stock has performed the best in my portfolio. Go figure.

 

[adv5500]

So I was just curious if anyone ever purchased Ford. I bought it back at 2.08 a few months ago, and it is now up 75%. That stock has performed the best in my portfolio. Go figure.

I bought Ford at 1.25 in october...it jumped up 100% and i pulled my original investment out. I'm running on pure profit now, and it's going up still.

 

[v-8power]

When they file for bankruptcy, your stock will be like toilet paper, only worth less.

 

[dhinch279]

I just did a rough analysis of the Ford and GM's 2008 Financial statements. GM is far worse than Ford. Roughly for every $1 that GM received in Sales it lost 1 cent. While Ford gained 13 cents for every $1 in Sales. So in other words Ford may not have made a record profit, but at least they made some money. GM is in the RED all day long.

There are two reasons, if I were a gambling man, that I would invest in GM still. One... I think that the Government will not allow GM to fail because GM is such a huge corporation that if it fails, alot of the companies that they buy their Raw Materials from will possibly go bankrupt as well (ie, the same companies that Ford, Chrysler, etc. buy their raw materials from). Which could pull Ford and Chrysler along with other companies down with them because they will have to scramble to find other sources.
TWO... I don't know how true this is, but it certainly wouldn't surprise me. China and possibly some other countries have shown an interested in buying GM, which the government does NOT see as a good thing because in certain war time instances what do some GM factories help to produce... weapons, tanks, planes, etc. If China owns alot of factories than we have less places to build certain wartime necessities.

Having said all, everything I have said is my own opinion, if you go out and bet the farm and 2 weeks later GM goes under... sorry. Make your own decisions about what companies to invest in, like Evan said, do a little research into the finacial statements that is what truly tells you how a company is performing.

 

[Jason]

People said the same about GM at the 9 dollar mark. I wouldn't place any money in the US auto industry right now.

 

[Deamers87ford]

can i buy stock if im only 15 and how would i do it cause that would be a good investment for the long run

 

[dhinch279]

can i buy stock if im only 15 and how would i do it cause that would be a good investment for the long run

Thats a good question, I would just check with etrade.com or scottrade.com. You probably are "suppose" to be over 18, but it might be worth a shot. Also, if I were you I would google Online Stock Trading and do a little research before you go dropping some money you may not want to lose.

 

[85_Ranger4x4]

Hehe, if wasn't a hassle I would buy a share of each to frame before they went under.

 

[adv5500]

can i buy stock if im only 15 and how would i do it cause that would be a good investment for the long run

you're gonna need to have a custodial account with an adult.

 

[Ranger Dave (B25)]

DON'T buy GM unless you like pissing your money away. When the BK hits, your stock will be worth Zero - just like it's new CEO.

Ford may not be such a bad move, though.

 

[gatlin04]

idk... my dad just recently got into stocks because of how "cheap" they are....
He has bought a ton of stock and the only one that has not performed for him is GM.... He got too antsy, thinking that it was the bottom when GM was at $7.00....... ovbiously he has lost his ass on that, now that it closed at $2.00.
He has made some money on Ford and AIG.....
I know, i know.... you guys are asking why the F buy AIG.... Well, basically, AIG is owned by the gov... so they arent going to let them fail, due to the amount of money that they have invested in them. My dad bought a few thousand AIG stock at 35 cents. Its now up to $1.05 or so... thats good profit for doing nothing. AIG was up to $1.65 just a few weeks ago......
I was looking on etrade and scottrade etc.... that stuff is way too confusing online. If i do get into it, i will just go to a real live person.