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Raise your hand if you're still arguing, have a valid point, and real trading experience to back it up. . . Nobody? Ok great. /argument
I called exactly what was going to happen to PPS before the IPO and I absolutely assure you it is going to continue. Why? OS is going to increase drastically either from SPO or simple dilution. That doesn't mean GM won't stay healthy, it means investors are not going to be happy in the short term. The conclusions drawn form the article are a stretch, but the concerns are real. What do you look at for indication of future profit when said company just effectively sold $52 billion of common stock that didn't exist a year ago? Management. If current financials weren't positive it would be a HORRIBLE sign for GM. They're exactly where they should be right now as any company that isn't profitable after that bailout would be an absolutely devastating failure. The question is, is management equipped for what lies ahead and will they make the same mistakes as old management? Those are the most important questions anyone looking to invest SHOULD be asking and that's why the concerns that lead to the exaggerated conclusion of the article are real. Scrutinizing management is exactly what needs to be happening right now. In summation, I am NOT, I repeat, NOT saying GM is in trouble. I'm saying that these are not bogus concerns that come out of nowhere, these are the exact questions that investors need to be asking and they should be considered rather than tossed aside as blind hatred of GM.
P.S.
Saying the market isn't based on tangible concerns just tells anyone that trades that you haven't got a clue. Take those comments to the OTC pennyland where they're accurate, the big board movement is a whole different story. It's about mass psychology and when you have a huge sample size (GM investors) losing confidence in the future of the brand, that has a very real effect on projected sales. That doesn't mean it's the end-all, or that GM is in trouble, but it's extremely naive to assume it means nothing at all.
Last edited by 8cd03gro; 03-31-2011 at 01:21 PM.
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