Opinion on  General Motors Corp (GM)     Sector: Consumer Cyclical  >  Industry: Auto & Truck Manufacturers
Still bullish

I guess everyone who reads this would probably find me crazy. We have had latest news from Reuters and I can read it on the New York Times, which states that the shares of General Motors have hit a 53-year low. I am sure this is reason enough for everyone including all analysts to dump the stock badly. But let us face it. GM is available at $11.5 and how much more do we expect it to fall?

Will GM go the Bear Stearns way? Is the company going to fold up simply because it has had less sales in recent times? GM is a  pretty old company and there seems no reason that they cannot survive this recession. This is going to be a small blip on the radar and in the next three to four quarters, one can certainly witness some sort of a revival in the fortunes of the company.

When the shares of a reputed and an old company with good brands goes down, it is probably the best time to take a contrary call and buy those shares.