Doesn't seem like a big move is going to happen in either direction at these levels until they nationalize the banks (plunge) or suspend mark to market (surge). Thoughts?
I'm not on the sidelines. I've upped my retirement percentage and I have a little to play with with my personal money. I want to buy something really cheap right now with a huge upside. BAC or Ford maybe?
BAC is probably going to be either up 100% or down 100% within a month once we have clarity on nationalization. It's basically like betting all your money on a one month game of blackjack. High upside, high downside.
BAC could still drop to $2. Everyone's pretty much waiting on Geithner to issue a statement for/against nationalization.
So anybody in the world with $1 Billion in cash could come in and buy GM completely? Alcoa is down to $6! Citi and BofA under $2 and $4! When does GE become a good buy, its under $10. Kraft trading at lowest price in history! Methinks some people will make insane amounts if they purchase at these prices on some of these prices.
What is the incentive for somebody to buy GM? There are valid reasons why those stocks are selling that low.
I don't know. Apparently Toyota has something like $18.5 Billion in liquid assets. Buy them and shut them down to get them completely out of the market. Use their facilities to build my cars in the US so I don't have to import. I'm also not projecting for the next year or two on some of those stocks, but there are good bets that some of those companies will continue to be good companies in 5-10 years and you could be buying at the lowest of the low. Of course, BofA and Citi could be nationalized, so those are more of a homerun type bet.
If Toyota buys GM, they don't just get the assets - they get their liabilities too. As we've seen from the bailouts, GM is asking for $13 billion just to survive the year. So you'd be paying a lot more than $1 billion if you were Toyota and bought up the company.
