Would you buy Ford or GM stock?

[jephdood]

They are both SO low.

Assuming they both survive this economic downturn, could be a huge bargain.

I have a hard time considering these well-established corporations a 'risk'.

[Winterweary]

They are both SO low.

Assuming they both survive this economic downturn, could be a huge bargain.

I have a hard time considering these well-established corporations a 'risk'.

Because of the importance of these companies, it may be unlikely that they will liquidate. The very real risk is that they will reorganize under the protection of the bankruptcy laws and the bankruptcy court will wipe out the shareholders leaving the creditors (including the government) as the owners of all of the stock. In that worst case scenario, your stock becomes worthless. The upside could be good, but you better be able to afford to lose your entire investment.

[graphicguy]

Sticking with the "buy low-sell high" philosophy, I bought Ford at $1/share a few weeks ago. It's now trading at around $1.75-$1.80.

Ford hasn't dipped into the Fed money (yet). I'm betting things have bottomed out, too. Well, with the possible exception of Chrysler. Unlike GM and Ford, Chrysler doesn't have much in the way of products that people want.

That said, I'm with Ford for the long haul.....2 years, 3 years, maybe 5 years....hopefully cash out at $5-$10/share.

Let me say upfront, I'm not a financial counselor, a broker, or in any way recommending what someone else should do with their money.

[devotiondoubt]

I wouldn't buy it...there are much better companies out there to give your money to...think long term. I just think that the American people have lost a lot of faith in US car companies and it's going to be incredibly hard for them to recover.

They, both, have lost so much money in the last 5 years, terrible margins, huge competition from overseas, unions (not always a bad thing, mind you), bloated beyong belief, recalls, and such.

I just think that your money would be more wisely spent somewhere else, like a Vanguard Index fund.

Ah, but what the heck do I know:snaggletooth:

[arthurs]

I bought some Fannie Mae and some Freddie Mac at .50. It's a long term play and I didn't overdo it...I'd be looking at Ford out of the two....the new Taurus should help with recovery plans...

[uw69]

They are both SO low.

Assuming they both survive this economic downturn, could be a huge bargain.

I have a hard time considering these well-established corporations a 'risk'.

Ford I'd consider, GM no way (or Chrysler for that matter). I think the US will only have two car makers at the end of this economic tsunami.

[jschlesi]

I have been watching Ford. when it hits my number I am buying!

[SnowmaNick]

Personal opinion only here, but I would buy Ford (not just the '10 Taurus but that new Fusion Hybrid is getting wonderful press), probably pass on GM and due to my feelings about the parent company avoid Chrysler. I would just do any purchases in Ford or even BoA in moderation.

[Mep]

I agree, Ford isn't going anywhere. That is the safe bet for sure but saying the stock will go up anytime in the short term isn't a safe bet but possible.

GM deserves to go out of business. Failed companies shouldn't be saved just because we like them.