It is indeed interesting. General Motors is one of the largest, most complex corporations on the planet, doing business of one kind or another in 159 of the more than 190 sovereign nations.
Back in March 09, when the situation appeared bleak and dire, I advised Steve's newsletter clients to go long palladium, since it was trading dirt cheap. Palladium is used in the production of catalytic converters.
I figured since the Chinese economy would rebound first, and the fact its government was implementing auto exhaust standards, palladium demand would go bullish.
It did. Palladium futures are trading at something like a 9 year high in 2010.
I advised going long a little AMEX stock North American Palladium (PAL) when it was trading in the 2s and haven't recommended getting out since then.
Ford (F) shares were going for a buck and change in March 09. I was a little late on the recommendation. Still, at 6 and change when I said go long Ford, at it's current 16 and change, the return so far isn't so bad.
Had I been a bit more perceptive and made a recommendation of Tata (TTM), the India auto company, which has returned something like 600 percent from its March 09 low...so shame on me.
Meanwhile, back in the fall of 08, when it seemed all of civilization was going to hell in a hand basket, I figured sales of new trucks and cars would take years before they would return to pre 07 levels, or roughly 16 million units a year.
This meant, by default, that car and truck owners would play defense and keep driving their current vehicles.
With that concept in mind, I recommended that Steve's newsletter subscribers buy stock in not one, but all of the auto and truck parts retailers:
Autozone (AZO)
O'Reilly (ORLY)
Advance Auto (AAP)
Monroe Muffler & Brake (MNRO)
All four are trading not at 52 week highs, but at historic highs, and making profits for their shareholders hand over fist.
Maybe Pete should move to China to pitch his concept for kit cars with 500 horsepower engines. That's where the money is these days.
The Chinese, like most Asians, love to gamble.
Which is why I advised Steve's newsletter clients to go long Wynn Resorts (WYNN) back in March 09. Wynn was putting up a casino in Macau, the Chinese version of Las Vegas.
Yes, of course, General Motors is interesting, and obviously good for Pete in some round about sort of way.
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