Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Joe Stocks...

GM is my largest single short position by far, and today was very painful. Longer term, the fundamentals are clearly poor for GM, with a very underfunded pension program still being added into earnings as if it were really earning 9.5% - what a joke. The auto boom is over, in my opinion, and I look for sales to fall off sharply over the next year with disastrous consequences for GM's earnings since even if they shut down plants to save money, they still have to pay the workers 90% of their normal pay - revenues will drop sharply, but costs will not.

I personally think GM is one of the lowest risk shorts on the board - at least until this latest rally in the equipment sector and other techs. F is under my self imposed rule of $10 minimum for shorting, but longer term I think both could easily be candidates for restructuring.

Just my opinion, though.

mlsoft