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Would it be stupid to invest in Ford or GM?

Okay I don't know much about the stock market so tell me if this is ridiculous. Right now Ford and GM stocks are ridiculously low. If I bought stocks right now banking on the bailout wouldn't the value of the companies rise? This may be immoral but if anything I am capitalizing on the corrupt nature of the government helping the free market. So tell me would this work if the bailout was used? Oh and feel free to take my idea if you think it makes sense.

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  • 1 decade ago
    Favorite Answer

    GM and FORD are on life-support. If you want to take a GAMBLE, that's what this would be, not an investment. Find stable, cash flow positive companies with growing earnings if you want to invest.

    Even if the government sustains the companies for a few more months, the stock prices will not necessarily improve until the company's prospects improve. Many smart investors are following these stocks and setting their value. If you think you can outsmart them all, go ahead. Just use "play money", or you may be sorry.

  • Anonymous
    1 decade ago

    If you had invested $100 in either of these companies 10 yrs ago your shares would be worth approx $30 before the stock market crash!

    These companies have stiffed their share holders for years and do not deserve any support from share holders.

    GM and Ford make good cars, I have owned both!! However their hands are tied with debt from high wages, pensions, etc.

    The best thing for them is bankruptcy and then restructuring. So that they can be freed from these shackles and put their money into research and development and not into an overpriced pension fund.

  • Anonymous
    1 decade ago

    i am pondering investing into ford or gm, but i am not thinking of the long term until i hear what will happen with their bancrupcy protection or government bail out...if anything i am hoping for a miracle on "GM Street" or a merger with a promising company (any asian will do)...but if you were a savy investor and had a good investing account (td ameritrade or e-trade) you could capitalize on the small gains the company pulls off in the early morning or late afternoon...i think yesterday gm rose from approx 2.6 to 4.2 ( i think...well i am too lazy to check) but if you were to invest at that time you could have gained almost half of what u put in...i myself am afraid of that style of investing cuz so much is out of your control (look for a professional to take care of long term investing)...but if you had a day trading account you could probably pull off something like $200 to $1000 per day (off of $10,000) during the morning and afternoon rush...it is best to focus on the morning rush...cuz afternoon sometimes never happens especially if the day of trading was a good day. Like i was saying mornings are crazy cuz u could get double the volume in 3 minutes and that can cause great fluxuations so u could cash in on a little rise. but i am pretty new to trading...hope that helps

  • 1 decade ago

    I thought they already turned down the bailout plan, but I suppose they will revise it and submit it again. As far as investing in a company, I would maybe invest in oil right now, because the price of gas will eventually climb back up to the 3-4 dollar range in the future.

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  • Anonymous
    5 years ago

    i could on no account call all of us stupid. you're clever to ask the question formerly you leap in. a minimum of you may get into it jointly with your eyes extensive open. In a be conscious with regard to the vehicle companies in usa, warning. till they arise with a greater helpful product with large mileage. The foreign places companies are killing them on the marketplace. those companies at the instant are not doing properly for a reason. continuously understand the clarification formerly you make investments. maximum obligatory approximately making an investment, do no longer make investments any funds you are able to no longer cope with to pay for to lose. you're able to be able to correctly be greater helpful off to maintain it, in spite of little or no activity.

  • Anonymous
    1 decade ago

    GM will go down first. Ford has said they have enough cash for another year.

  • Judy
    Lv 7
    1 decade ago

    It's not immoral. Invest if you want to, but if they do go up, watch them closely and be ready to sell fast if things go downhill again, which they almost surely will.

  • 1 decade ago

    these are the too big company and they do every thing for saving themself and in comming days crisis will over and thy will agian the giant conpany

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