Changes to Jubak's Picks
Car sales have shown signs of slowing under the impact of higher gas prices. Inventory at General Motors (GM - Get Report) of its gas-guzzling Cadillac Escalade, for example, now stands at 125 days of sales, about twice the target level. Wall Street fears that this is just a sign of things to come as gas prices stay high and interest rates start to move up. This is forcing automakers either to sweeten their financing deals for buyers or face slowing sales.
I'm selling BorgWarner out of Jubak's Picks with a loss of 11% since I added it to the portfolio on Jan. 13, 2004. (Full disclosure: I will sell my personal position in BorgWarner on May 14.)