Random Stock Market Thoughts

Monday, January 23, 2006

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How Does This Make Sense?

F= + 0.42 (5.32%)
Gm= +1.80 (8.98%)

How does that make sense? For those of you keeping score, Ford today announced job cuts that will take place before 2012. 2012!!!!!! Maybe if they were going to do something relatively soon it would matter, but 2012 does not matter. And why did GM go up more than F? They did nothing! Nothing! I'm sure its due to expectations that they will do something when they report, but as of yet we have done nothing. I am halfway tempted to double down on them, betting that they will continue to do nothing and based on the hype from today, it might be a favorable risk reward. Either way, when the company that announces the changes can't out do the company that does nothing, it is a very negative sign. Think of it as a higher place on the cliff for them to jump off of!

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