GM Stock Advice-Should You Buy GM Stocks?

Finance Articles | January 10, 2011

Should you invest your money in GM (General Motors Corporation) Stocks? Many people would say yes, but this really depends on a number of factors such as the economic environment.

Good time to buy GM Stocks? The answer is "No" for those who are risk averse or want to cut out risks in this poor market condition. Some of you might think of buying GM stock since it is close to bottoming out but this doesn’t mean now is the time to go. The stock may continue to decline and does not bounce back as you expected, you may end up with selling it at a loss.

GM's stock price has tumbled dramatically today, you can buy GM stock for under $2. Has it hit the bottom or is more decline ahead? We should consider some of the factors as below:

- The company has suffered from poor management decisions.

- There is too much competition from foreign manufacturers. American auto maker industry is currently struggling to survive.

- GM is in great debt.

- General Motors Corp. posted a $9.6 billion net loss in the fourth quarter. It will need at least $9 billion in 2009 to weather the current downturn.

Please refer to the relevant guide for more information on how to choose stocks and penny shares tips.

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ABOUT THE AUTHOR

The author, Loke Yuen Wong, holds an MBA from Heriot-Watt University (UK) and a BCom degree from The University of Adelaide (Australia). Other qualifications include the Postgraduate Diploma in Business Administration, Diploma in Instructor Skills, Diploma in Inferential Statistics, Group Diploma in Accounting, Group Diploma in Management Accounting, ACCA CertIFR, Pre-Cert (ES) TESOL, Certificate in Managing Performance, Certificate in Book-keeping & Accounts and English for Commerce.