Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Motor City Bailout

By

Strengthen your portfolio in good times and bad.

PrintPRINT
A bailout of the automakers is taking shape. According to the Wall Street Journal, the United Auto Workers Union, or UAW, said it would make contract concessions in order to help the Big Three win federal aid. In return, the union may get an equity stake in General Motors (GM), as well as a seat on the company's board.

Meanwhile, members of Congress acknowledged that a bipartisan rescue package would likely be unveiled soon. It would inject roughly $15 billion into the Detroit automakers, helping them soldier through the first quarter of 2009.

Shares of GM and Ford (F) surged on the news.

From the Bull Pen: It's foolish to think that a bailout of the automakers was the catalyst that sparked a broad-based rally in stocks. Today's performance was probably just another move in the context of a bear market - and we may be due for a correction tomorrow. But the lows are, by all accounts, in for the 2008. Bulls can consider a stock like Disney (DIS), catching it on a pullback toward $23.

From the Bear Cave: Is Amazon (AMZN) due for a pullback? It's sitting at its 50 DMA after a nearly 30% move this month. Those attempting the downside can set a buy stop above that level.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE