GM Dealers Buy $1M in GM Stock

[FenwickHockey65]

http://www.autoblog.com/2008/07/17/i...m-in-gm-stock/

GM has had what can be conservatively called a difficult week. In a live press conference, CEO Rick Wagoner delivered sobering news about health care cuts, asset sales, retirement and separation packages, and the elimination of GM stock dividend. The doom and gloom hasn't scared off the General's Dealer Council, as 20 retailers purchased a combined $1m in GM stock to show their support. Of course $1m isn't going to help much in the face of $15 billion in cuts, but co-chair Duane Paddock wanted to make the gesture to show GM and its massive dealer body that the council believes in the struggling automaker.

The move could be considered risky in light of the fact GM stock has dropped like a rock over the past couple months, and when the stock dropped to below $9 per share, it was a 50-year low point. So far the council looks both loyal and fiscally prudent. After Wagoner's press conference, GM stock rose by 16.6%. That translates into about $170k in earnings in just under a week. The way vehicle sales have been at GM dealerships, the dealers may want to try their hand in the market more often.

[Kennyboy]

At least some people have some faith in GM.

[jbernie]

Depending on the price they bought at they could sell now and make a small profit as GM is back up over $12.50 or so today.

It always good to have people or groups with a vested interest in a company buying stock.

[ByTheLake]

It's not much, but it's great press. Gotta grab all the positive news and hope it grows.

[GMusa]

GM needs to lose HUMMER and GMC..and turn saturn into a high mpg brand .. then they should pretty good.

[Ambalanche]

Well, they couldn't hardly loose. If the stock went much lower, just about anybody could do a hostile takeover. Glad they showed some 'nads!

[SRX7697]

Originally Posted by GMusa

..and turn saturn into a high mpg brand .. then they should pretty good.

I was looking at the Opel Corsca. Why cna't that be a Saturn here? Isn't Chevy Beat sized? bring it here! It's nicer than a Smart, and would prob be cheaper


i bet it's because of safety/crash regulations.

[Smoke]

Originally Posted by GMusa

GM needs to lose HUMMER and GMC..and turn saturn into a high mpg brand .. then they should pretty good.

Yes, we've heard this a thousand times but I don't think this is the appropriate thread for it.

[FenwickHockey65]

I don't know if my math is correct (I think it is...), but if you bought GM stock when it was below $10/share, let's say, 500 shares, you'd have around $1500 right now. Pretty good return.

[GM-Joe]

If they bought it on Monday, they have already made 30+% = $300,000!!!

I had been thinking buying some around the first of August; let's see what the price is then.

[ChevroletRevived]

At least it's up! That's good news. I still think GM is a great buy. It will eventually go up once GM starts to do better. When it does, some people who have bought and are buying right now will stand to make a LOT of money.

[blkwrxsti]

Originally Posted by ChevroletRevived

When it does, some people who have bought and are buying right now will stand to make a LOT of money.

I know it sounds like a MLM gimmick (there's probably some SEC rule or something), but this is the sort of thing that might catch on -

What if GM gave everyone with at least $100K of stock (not options, not mutual fund shares, not 401K funds; just STOCK) the employee discount? Even if there were other hurdles, like you have to call the GM stock number, and you have to have owned the shares for more than 6 months.

The theory is that this person is obviously acting like "part of the family", so maybe they should be treated like family... People's 401k's and e-trade accounts aren't doing so well right now, so right now, this might get people to say - I might buy a car in the next year or two, maybe I should kill two birds with one stone.

From GM's point of view - since they killed off the dividend, it might be a good enticement for some actual people to buy and hold (not institutional types and employees that will buy and sell based on earnings reports and outlooks).

On second thought maybe I should buy $100k of stock before suggesting something like this on a public forum...

[skylark68]

That's a great show of support. I'm glad that the dealer network still believes in GM.

[chakis24]

Originally Posted by GMusa

GM needs to lose HUMMER and GMC..and turn saturn into a high mpg brand .. then they should pretty good.

so what happens when prices stabilize and people start buying again? or those people who still want and can afford them? theres room for everything if theyre managed right.

[slowinthefastlane]

Originally Posted by Kennyboy

At least some people have some faith in GM.

Nah. It's mostly so that Pontiac dealers have even more leverage to demand re-badges.