Trade of the Week: GM
Originally published at 10:22 A.M. EDT on Monday, June 1, 2015
I'm going long on General Motors (GM) at $35.73 as my second Trade of the Week.
My reason is, quite honestly, a gut feeling -- and is therefore speculative even though the share price is still depressed. (As Grandma Koufax would say, "Dougie, you can't get killed falling off of a curb.")
While I expect tomorrow's auto-industry sales figures to be impressive (and likely beat forecasts) and GM's shares appear relatively oversold (unlike the Nasdaq), I've heard repeated rumors of a possible acceleration in the company's return-of-capital and capital-allocation strategy.
I have no idea whether these rumors are true, but I've heard them so often and from so many different sources that I wouldn't be too surprised if this did happen sooner rather than later.
Originally posted at 10:01 a.m. EDT on Monday June 1, 2015
I re-established my small short position on Apple AAPL above $130 this morning as I suggested I would, for previously mentioned reasons.
Hopefully, I can make another trip to the bank with Apple!