NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Bridgewater Equity (BWE).

Citigroup Inc., General Motors and Chrysler have agreed to account for how they are using billions of dollars invested in their corporations by the Treasury Department as part of a $700 billion bank bailout fund, according to the inspector general overseeing the program.

Corporate earnings warnings and greater than expected job losses sent the markets tumbling during the midday with the Dow plummeting 140 points to 8875. Nasdaq plunged 30 points to 1623.

General Motors Corp. (NYSE: GM) scrapped plans for the two-door, six-foot bed Pontiac G8 sport truck lifting the stock price 16 cents to $4.10....

Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community. See also Ten Themes for 2009.  Treat this subject and slap it in the "for what it's worth" category but the Toddo Sleep-O-Meter Index is front and center after last night's inability to catch a wink. Old school Minyans know that this typically serves as a precursor for "something big" in the marketplace. Look at me I'm A.D.D.! I completely spaced on including "salary deflation for professional athletes" on ...

While low-priced stocks can be cheap for a reason, they might also present some great, overlooked investment opportunities.

US stocks fell sharply on Wednesday after a worse than expected employment report rattled investors ahead of Friday's key jobs data. Deteriorating corporate outlook also dampened the sentiment.[More...]

The Madoff Sideshow By Greg Hunter 1/7/09 A friend of mine, who is a crack investigative producer, just got a gig with a major network. His new job will be to cover the Madoff story. There is no doubt this is a big story and in the press been called the “crime of the century.” Madoff is a self proclaimed fraudster who puts a face on the Wall Street “banksters” as in gangsters with brief cases instead of Tommy Guns. But for most Americans this story will be nothing more than tragic theatre. This story’s outcome will not matter to those in or headed for financial ruin. The real story is what’s going on over at the Treasury, Federal Reserve and Congress. This trio has already spent, “loaned” or committed 8.5 trillion dollars to the economic problems plaguing our country.  It appears the carnival of money printing is nowhere near ending. Now, there is even talk of another government bailout for the people who were ripped off[More...]

Total U.S. auto sales last year hit a 16-year low as the world’s major carmakers racked alarmingly high double-digit sales drops in the recession-plagued United States.

According to industry research firm Autodata Corp., U.S. vehicle sales clocked in a 13.2…

Filed under: General Motors (GM)

GM (NYSE: GM) is now walking around Washington making the case that the money the government may offer it will be all it needs, ever. That is highly unlikely, so the reason behind the assertion is a puzzle.

According to Bloomberg, "General Motors Corp. has enough government loans to cover the worst-case scenario it described last month and says it won't need more if the economy holds up." Under the current proposal GM would get $13 billion and GMAC has already gotten $6 billion.

The "if" part is the issue. GM's assumptions are way too optimistic.

Beginning on the cost side, if GM's employees, particularly UAW members, see a pot of money going into the car company, they are unlikely to take deep jobs cuts. The union has already said it has given enough. Creditors are almost certain to look at the infusion from the government as a reason to fight hard to keep their status and get full payment.

Looking at sales, GM still assumes a domestic vehicle market that will drive 12 million units sales a year. Based on December sales numbers, the run-rate for the entire US next year is closer to 10 million. GM may have to offer big incentives to keep its market share, which will push down margins even further.

Dream on.

Douglas A. McIntyre is an editor at 247wallst.com.

GM: We don't need any more money originally appeared on BloggingStocks on Wed, 07 Jan 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Filed under: Dell (DELL), Intel (INTC), General Motors (GM), Home Depot (HD), Market matters, International Business Machines (IBM), Citigroup Inc. (C), Johnson and Johnson (JNJ), Black and Decker (BDK), Sears Holdings (SHLD), Lowe's Cos (LOW), Wells Fargo (WFC), DJIA, Stocks to Buy, Stocks to Sell, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says the next six components include one that may vanish from the index, as well as a top pick.

This is the third part of Jim Cramer's series of predictions for the Dow components in 2009. Be sure to read the first and second parts.

General Motors (NYSE: GM) (Cramer's Take): I believe GM will disappear from the Dow in 2009, a historic change. GM could, like AIG (NYSE: AIG) (Cramer's Take), become a zombie stock, if the common stock isn't crushed in 2009 by bankruptcy. The GMAC deal is a windfall for the company, though, and a "soldier on" situation could be in the works.

The best hope here is a Citigroup-like (NYSE: C) (Cramer's Take) investment where the common stock is bolstered, but the union situation makes it highly unlikely that the company's fortunes can turn. This one's problematic for my whole Dow Jones projections because I believe its near or total obliteration will allow the Dow keepers to replace it with something that can rally in 2009. Cost-cutting just won't make it; there is way too much overcapacity in this industry.

Fortunately, given its reduced size, GM's disappearance won't hurt the averages much. If you really like this one, please play the GM Senior Convertible Debentures C (GPM), which is a convertible preferred with a high yield.

Continue reading Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part III

Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part III originally appeared on BloggingStocks on Wed, 07 Jan 2009 09:24:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Schaeffer's Equities Analyst Colleen S. King a look at news on the Street before the market open.

Schaeffer's Equities Analyst Colleen S. King a look at news on the Street before the market open.

Companies featured in this segment: General Motors Corporation (NYSE:GM), Ford Motor Company (NYSE:F), Chrysler LLC, General Mills Incorporated (NYSE:GIS), General Electric Company (NYSE:GE), Sasol (NYSE:SSL), Dong Energy, Peel Holdings, British Energy Group plc (LSE:BGY), NRG Energy Incorporated (NYSE:NRG), and Chevron Corporation (NYSE:CVX).

Schaeffer's Equities Analyst Colleen S. King a look at news on the Street before the market open.

Schaeffer's Equities Analyst Colleen S. King a look at news on the Street before the market open.