GM Not the Only Victim of High Crude-Minyanville

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GM Not the Only Victim of High Crude

Jeff Macke Jun 23, 2008 2:30 pm


		Partner companies also feeling the pinch.

Hello from New York, where it's Thursday in my brain as I make my way toward a trip to Canada for fishing and bonding later this week. I'm not a bobber-watcher, by nature, but I'm big on bonding and Mrs. Jeffmacke is all but kicking me out of the house with a mandate to "Find My Smile." As I so often point out, it's very seldom in my best interest to disagree with the Missus.

Here's what I'm watching when not wondering if it's possible to just have myself dipped in a giant vat of bug repellent:

What kind of fishing will I not be doing any time soon? Bottom fishing. Picking away at long side trades in names like Citigroup (C) or JPMorgan (JPM) is tantamount to self-abuse at this point.
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In other fishing metaphors, check the streaming misery flowing from crude. The stories on General Motors (GM) and the AMRs (AMR) of the world are the headlines but the American Axles (AXL) and Lear Corps (LEA) of the world are suffering the same pain as their partners, just a little less loudly.
Today's examples of why I don't buy dips in retail are brought to us by the letter C, as in Circuit City (CC). The not-dead-yet electronics retailer is down 20-odd percent today and the best "reason" being offered is the idea that Blockbuster (BBI) may not want to buy CC for $8 a share. You don't think?
Duuuuuuuude.
I simply can't believe what I just paid for a ticket to go to fishing and the fact that Northwest (NWA) isn't making money at these prices. This week may be the last time I travel more than 40 miles from home for the foreseeable future.
And when I don't go to Vegas ever again I won't be staying at the MGM Mirage (MGM) or buying the casino stocks. Then again, I like my odds on "Red" more than I like my chances of calling a bottom in the laggers on days such as this.

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tags:

NWA, LEA, NORTHWEST, LEAR, MIRAGE

Comments (3)

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Dean Simmons

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06-23-2008, 3:28 pm
Acrimony will result as a lot of rural areas which don't benefit much from economic growth in other areas have rolled the dice on a tourism based economy. They are about to lose and lose big, leaving them with nothing in particular to employ th Read More

Amy M

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06-23-2008, 8:26 pm
Agreed. In scenic rural areas, tourism is the economy (which explains why the midwest is just plain old dying..). In my neck of the woods (tee hee), only a tiny fraction of the population does what traditionally held up the economy - namely lumbe Read More

Dean Simmons

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06-24-2008, 9:37 am
I live in Denver metro, and I think our local ski resorts depend on out of state visitors for a pretty large percentage of lift ticket sales, and a VERY high percentage of hotel / restaurant sales up in the mountains are out of state folks. On the ot Read More


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