Let me begin by thanking all of those who took part in our recent poll on GM. As you know, GM began trading as a new company last week. We were happy to see that many of you had a pretty strong feeling about what you want to do or do not want to do with this stock.
As of this writing we have received 1,744 votes. Out of those votes, 78% of you said you would not be interested in buying GM stock. In fact, Steve said in his feedback, "Americans may shun GM but China is getting behind the wheel." I must say that it was interesting for me to hear that they're selling cars in China. That may be true, but during my visit I did not see that many Chevys in Shanghai or Beijing. What I did see were an awful lot of VWs and Audis. These two brands seemed to dominate the Chinese market.
I'm often asked if I would actually trade in GM stock. Well, I would when we have more data and a compelling reason to do so. Right now like many Americans I'm very leery of having the government involvement in any type of investments. The government does not have a successful track record in any endeavor that I've seen them take. If there are any readers of this blog the could share some government success, we certainly would be happy to post it right here.
Let's take a look at some of our other comments on GM:
This from Jerr:
"Many years ago there was a running joke going in a greeting card department. There were birthday cards that said on the cover something like congratulations, you are now a proud owner of stock in GMC. Inside was a facsimile stock certificate that read: GMC – Garfinkle Moosetrap Corporation.
Perhaps all the buyers think they are now buying shares in a company that will make money manufacturing and selling moosetraps. Or perhaps the buyers expect to find the bigger fools to sell shares to in the future. I expect GM to quickly run out of both bigger fools and mooses. Uncle Sam still owns way too many shares that it needs to sell for over $100 each just to break even. Either Uncle Sam (and the captive U.S. taxpayers) is the biggest fool or they’re going to become bloody darn lucky. But then again perhaps the U.S. can manipulate the market."
This came in from Matt:
"I think were looking at a short term pump and dump here. Considering the Fed needs a stock price in the range of 40-50$/sh or so to B/e, I have a ridiculous conspiracy theory that the price will be artificially inflated to around that level via big institutional investors at the helm of the Fed. Considering they intend too release their position on GM within about 6 months, I think after that point we’ll see massive sell volume and GM overtime will come to reflect its true value to the public….$0/sh. They also have not done anything about the $29B in unfounded pension liabilities…
This company hasn’t changed significantly, its all perception."
Right now there are 54 comments (read all comments here) on this poll, many of which were similar to the ones above. I wish we could feature all of your comments as we do appreciate them and read them. We do not have an automatic robot that just posts everything. Each one of your comments are carefully read and then posted on the this blog.
So once again on behalf of the MarketClub team, thank you for taking the time to vote in our GM Poll and also to take the time to make some very interesting, informative, and insightful comments.
Look for more polls as we find it is a great way to judge what you are thinking about the markets, life in general in these United States, and also what the future holds. If have any ideas for polls that you would like to see please feel free to e-mail us and we will do our best to create a poll is timely and on the money.
Adam Hewison
For the MarketClub Team
No investing from me into GM, to hell with GM and the US gov.GM holds out it's hand and gets what it wants,and the gov just do not produce anything ,other than giving orders.America is dead thanks too all political lazy lifetime lefty hacks and big corporate "capitalist commys", GE, Wall St. etc , who constantly work only in the govs favor .They have placed themselves in a juxtaposition against the private sector and small business.
Government partnerships have worked quite well in the past in America and all across the world. And they are working very well today. Just check out what is going on in this country right now. There is nothing wrong with this concept whatsoever. In fact if you pay attention to our own history, you'll soon discover that the founding fathers had little or no confidence in coroporations. At best they were considered to be necessary evils. After all it was a huge corporation that conned and screwed the founding fathers just as Americans are getting screwed once again today.
Sure capitalism has its place. It has contributed to wealth all across the world. But you had better be vigilant. Because there are many amoral people in the business world just as there are amoral people in government. They only care about your money and they are after it. They do not care one bit about people. They could care less about you. That is reality.
Furthermore, there are good and bad issues that confront socialistic societies. They can be and are often highly bureaucratic. But hey, what they heck was General Motors? It is the nature of institutions for that matter. At the same time the socialistic countries now enjoy the highest standard of living in the world. Average people enjoy much higher standards of living in socialist European countries than we do here in America. Consider the number of poor people in Europe vs. America. More poor people here despite the fact that Europe has a population of 550 million people while we have just over 300 million. We also have a heck of a lot more people in prison. So put 2 and 2 together. There is trouble - serious trouble - right here in America and we need all of our people, liberal and conservative, etc. to work together to solve the problems. Why do we act like backwoods hicks from the past who spent their lives feuding. More stupidity. Get real. Get down to brass tacks. Stop throwing around simple minded formulas for success as though conservatives or capitalists or liberals or libertarians or greens, or anyone else, for that matter has the corner on truth.
Furthermore, governments do far better at some things than at others. Examples: health care - ours is one of the worst systems among developed nations in the world and we pay twice as much. How stupid is that? Another is the military. Again it is very stupid to trust our security to private companies. In the past various empires tried the same and eventually collapsed into oblivion. Americans have been sold a bunch of crap and they, like patsies, believe what they hear without knowing much about history. They have been conned. They are being conned right now. They have accepted all kinds of propaganda without recognizing the obvious. Was it PT Barnum who said, "A sucker is born every minute."
That having been said, it is worthwhile to listen to conservatives AND liberals AND anyone else. Just make sure that they are authentic and sincere. Don't be a fool. There are all kinds of cons out there. So don't be someone's stooge.
There is some good material here for sure. Don't just pass it off as nothing. You can make some money. Good idea in these tough times, it seems to me. Pay attention. Read, listen and learn.
Nolan,
Thanks for your insights.
All the best,
Adam
How can you say your truck is American made. Most of it is made in various countries, and more than likely only assembled in the US.
Adam,
Please change the colors of the moving averages so one can distinguish one from the other. At present the colors are too close together...
Bill,
Thanks for your feedback.
I have passed your comments along to our design team.
All the best,
Adam
The responses are mostly typical right wing wackos posting. I dont see/hear a single word said about the gov partnership in Wall Str - oh that is right the gov and the FED forgot to get shares in GS and JPM and Wells and BAC et al. You guys tear me up. Govn all bad vampire cap...ism great.
By the way several doc on tv indicate that GM is #2 behind VW with its Buick sales and Chevy is increasing and the brand is held in high esteem. Whatever, GM is a shell of a union. Starting pay for new folks on the assembly line is $14.50 an hour and benefits are almost non existent. Just what everyone seems to want.
Cheap shots and polls like are not beneficial for the real quest making bucks in the mkt.
I absolutely love your videos, Adam. I have learned and am still learning very much. I haven't a big stash in my account, so I want to make it count. I hope to use TT in the future.
Ann,
Thanks for your kind words.
Every success,
Adam
I don't give a dam where GM stock goes, or how much better GM is better than Ford. Or Ford is better than GM. Anyone anywhere can purchace these shares. I only know one thing for sure. This country needs ALL the help it can get right now..... My truck is AMERICAN made and when it is time to replace it my new truck will be also MADE BY AMERICANS. This does not mean I will be looking at a Toyota made in Tennesse. Maybe they build them here but the profit still goes to the Emporer of JAP LAND. This is AMERICA! Support AMERICAN goods!
Hi Adam:
My encouragement for this note? The comment from Donn.
I have found my outlook can change slightly from day to day; the quality of my night's rest? A mindset concocted while dreaming? The amount of time I slept on one side or the other? A post sleep comment from someone close before I'm fully awake? Don't know. I find the thoughtful comments from others trying to get ahead, as I am, help me to assess my suroundings, and question myself. I never get a definitive answer of course, but I value my opportunity to make the assessments each day, and appreciate you all. Doug.
Thanks for what you do. I have recommended your website to a number of people. I know that at least one is now one of your subscribers. Hey, I might be another member somewhere along the line. And a happy thanksgiving to you.
I have to agree with Donn above - I have never understood this fascination with "What do you think,"polls, either here or on CNN or anywhere else! I must admit it is a little scary when you read some of the result of those polls, as you begin to wonder - Who are these people? and more importantly, Do they vote? I would rather hear your researched, statistically justified conclusions that will help me to make more informed investing decisions....
Thanks, Ted
Ted,
Thanks you for your feedback.
We appreciate your voice on this matter.
All the best,
Adam
78% is a strong enough reading to get my attention. As a stockbroker back in 1980 to 1982, I was very interested in GM. Absolutely no one else was. I mean no one. I tried and tried to get people to buy that stock. Here are a few reasons why I liked it then. I noticed a change in institutional holdings. From a low of something like 24% to and improvement of about 29% institutions seemingly had changed their mind. That always make me interested. Furthermore, the bulk of analysts had good earnings projection for the next two years. Annual earnings increases of something like 184% and 220% sequentially. That too got my attention. Finally I looked at the stock technically. Looked good to me. Within the year, the stock had doubled. Imagine an old line blue chip stock doubling in less than one year.
I suggest that investors withhold any opinion on whether it is good or not good to have the government, we the people, owning this stock at any particular point in time. Does anyone remember where that stock was trading at the bottom of the market? How soon we forget. And how about today? I see a quote of 36 just a few days ago. Would someone please explain to me what is wrong with a return like that.
Why do I care about how a company turns itself around. Incidentally Chrysler dramatically outperformed GM when I was buying GM. Does anyone remember what was going on during that time? Remember Lee Iacocca?
Again, let's try to avoid generalities or pet theories or prejudices. They can get in the way of some great opportunities. I prefer a cross reference approach to any trade or investment. Most of the time, there are all kinds of things saying the same thing when a really good opportunity comes along. I believe that was the situation for GM in the early 80s and it might well be the situation again today. I have not checked it out. But I can tell you that I bought F at $2.00 and the stock had been trading a lot lower than that before I bought it.
Nolan,
Thanks you for your comments.
Much appreciated.
Adam
I like the videos on current stocks that you think to be ready to buy, up or down. It helps to focus in on a stock or commodity that I may have missed.
You are all forgeting-----The government will NOT allow GM to fail or disapear because of the importance to national defense. They build war machines and weapons.
TRADE TRIANGLE Question:
I posted this before, but didn't get any answer yet.
I'm not a member... I'm "shopping" at the moment, trying to evaluate if the Trade Triangles (TT) system is viable for my portfolio.
I have to say, "So far, so good!"
Yet, I have a hard time figuring out how to use TT in a sideway market.
Easy when the trend is obvious: Use Monthly to buy, Weekly to go in-out of the market. That portion seems to work not too bad, but when the market trade sideways.... What do you use? Another technical indicator?
Could you clarify this point?
Thanks for any insight!
Peter A,
Your question was answered earlier just just might have missed it.
Here is what we said in our earlier answer.
Thank you for your feedback.
When you see the Trade Triangles move into a -55 or a +55 mode you want to use a technical tool like an oscillator to trade. MarketClub has several oscillator indicators that you can use. Give them a try, I think you might be surprised at how well they work.
All the best,
Adam
Great poll Adam. This whole GM, bail out, union, Chinese kabal is everything that is wrong with our markets and Washington right now. And yes, our opinion does matter at MarketClub. ;-]
Apparently the "We'd like to know what you think" approach/poll is a popular one as everyone likes to throw in their 2 cents and see themselves in print. Market Club appears to be doing more and more of it as time goes by. I suppose it is more of a social type of thing. I would hope market club could stay clear of these sorts of activities as I don't really believe most people want to know what I think - who am I? Likewise - I don't really care what another average Joe thinks. Mainly, this is because Market Club purports to offer technical analysis and buy/sell signals based on their proprietary methods - NOT on the feelings and emotions or reasoning of others or anything outside of the Market Club system. Mainly, I'd like to try and understand the system better and how I might use it to make money. Everything else is time consuming and inconsequential. For instance, we still have to click on the alerts or blogs to read them to see if it is something we need or want to know. Wasted time! I think these sorts of things clutter the landscape and take up the "non-robots" time and ability to attend to more important things. For instance, I would like to see more of Adam's short videos as I always feel I learned something useful after viewing them. I think we all appreciate the effort that Adam and company put into Market Club to make it a worthwhile and trusted place to go for information and investing help. Things like more Adam videos and less "What do you think?" social poll participation offers and results would be the way to go IMHO. That being said, I think GM will do well if it goes up, but if it does not, it will go down, that is unless no one really cares, in which case it will move sideways.
Donn,
Thank you for your feedback.
We're always trying to find out what our members want to see or hear. We are ramping up on a number of new things at MarketClub and we hope you enjoy some of the new features we have coming.
More videos, I enjoy doing the videos and certainly am happy to hear that you're finding them useful.
All the best,
Adam
The Chinese bought 18% of the shares so soon GM will have its biggest market in China, as no sane American will buy a car from a company owned by the Auto Unions, Government, and the Chinese. However, the board meeting should be televised...they will definitely be entertaining.
Here is a suggestion. Can we incorporate the trade triangle signal on the log in page and actually show the price the new, triangle alerted. Rather then having to open up each chart in my portfolio watch list.