That is real news to trade on as well. In that case, people are SELLING on that rumor, and will buy back when its been reveiled. Thats more logical. But its a given. It would retrace upon being revealed(up , if it went down on that.)Originally Posted by Brandon Matthews
but what if they buy a brand that Sirius doesn't have an agreement with? then they lose the chance to gain those subscribers through the SIRI trial membership, right?
GM, Chrysler May Shrink U.S. Car Market for 3rd Month
March 31 (Bloomberg) -- General Motors Corp. and Chrysler LLC probably dragged the U.S. auto market to a third straight monthly contraction in March, a sign that domestic sales may not have reached a bottom.
Vehicles likely sold at a seasonally adjusted annual rate of 8.8 million, the average estimate of 8 analysts surveyed by Bloomberg. February’s rate was 9.1 million, and January’s was 9.6 million. It was 15.1 million a year earlier.
“We might see things get worse before they get better,” said Christopher Hopson, an analyst for IHS Global Insight in Lexington, Massachusetts. “Until the general malaise lifts, things will be at depressed levels compared to a year ago and there won’t be much recovery in the second half.”
The prospect of further erosion in demand underscores the challenge facing GM and Chrysler as they face deadlines set by President Barack Obama to “fundamentally restructure” or lose the $17.4 billion in federal aid that has kept them alive.
GM will say tomorrow that sales declined 48 percent, while Chrysler was off 46 percent and Ford Motor Co. fell 45 percent, based on the average estimates of 7 analysts surveyed by Bloomberg. Toyota Motor Corp. may slide 41 percent, and Honda Motor Co. and Nissan Motor Co. will drop 42 percent, according to 4 analysts.
Declines of that size would push the industry to a 17th month in a row of shrinking sales. An annualized rate of 8.8 million vehicles would be the lowest since December 1981. A Bloomberg survey of 38 economists produced an average estimate of U.S. sales at 9.2 million units.
Market Share
The pain for automakers is so widespread that traditional benchmarks, such as U.S. automakers’ market share versus their Japanese peers, are being obscured. While Asian brands led by Toyota had 47 percent of U.S. sales in February, to 44 percent for GM, Ford and Chrysler, that lead was built on the strength of smaller declines, not added sales.
“The story of the industry continues to be widespread reluctance to purchase durable goods, amid weak consumer confidence and rising unemployment,” Brian Johnson, a Chicago- based analyst for Barclays Capital, wrote in a March 26 note.
U.S. auto sales through mid-March ran at an 8.8 million annual rate, Chrysler Chief Financial Officer Ron Kolka said March 18. GM Chief Executive Officer Rick Wagoner, interviewed March 19 before he left at the Obama administration’s request, said the domestic market this month was similar to February’s.
Break Even
GM may have to reduce costs so it can break even when U.S. annual vehicle sales are as low as 10 million to 10.5 million, John F. Smith, the company’s group vice president for product planning, said today on a conference call.
The automaker’s previous break-even target was 11.5 million to 12 million. Sales of cars and light trucks in the U.S. last year fell 18 percent to 13.2 million. GM’s share declined to 22.3 percent from 23.7 percent in 2007.
Johnson estimated that retail sales, which exclude transactions with fleet buyers such as rental-car companies, may have fallen to an annualized rate of 7.3 million.
That would be less than the 8 million rate where consumers’ purchases “appeared to have stabilized over the previous four months, casting doubt once again on where the floor could be for the industry’s downturn, absent any direct stimulus from the government,” Johnson wrote.
Consumer confidence in March remained near its weakest in three decades, according to the Reuters/University of Michigan final index of consumer sentiment. The index was at 57.3, after reaching a 28-year low of 55.3 in November.
Optimism wilted under the weight of job losses that probably sent the U.S. unemployment rate to 8.5 percent this month, the highest since 1983, according to the median estimate of analysts surveyed by Bloomberg News before the Labor Department’s April 3 report.
Global Pressure
Global deliveries also have been under pressure because of the recession, blunting U.S. automakers’ efforts to offset weakness at home with sales abroad. Toyota passed GM last year as the world sales leader while posting a 4 percent drop in volumes. GM’s total slid 11 percent.
Obama’s task force revived the prospect of a bankruptcy by GM by suggesting that court protection may be the best option for the automaker.
GM fell 32 cents, or 12 percent, to $2.38 at 12:53 p.m. in New York Stock Exchange composite trading. The shares dropped 86 percent in the past year before today. Dearborn, Michigan- based Ford declined 7 cents, or 2.5 percent, to $2.69.
Im showing a bullish crossover in moving averages on the 5 day s&p chart. I think we have a break away. Look at the MACD. Hard to trade against that right now for traders.
exilejeff, here is an example. I bought 200 RIG this morning at 59 $ and sold them as covered calls April 60 $ for 3 $. This reduces my cost to 56 $, but limits my profit to 4 $ or 800 as a total.
In your case, you would keep the stocks but collect money by selling the calls, unfortunately you would only get a total of 3.30 $ per share.
Did you see that Brandon. Guess we know why it went to .33 now.
I would think that the uncertainty over the GM and Chrysler situation would lead overall to less car sales and not automatically to people buying another brand.
a portion of them - yes -
But a good portion will now be indefinite since they made me wait an extra 2 weeks to transfer.... I'm extremely happy with the customer service at TDA right now.
For anyone not paying attention.... we're in .32 land again.... if you were planning to reenter and pick up shares... nows the time...
Where you you see Jan 2011 2.50 Calls? TD Amer & Yahoo only show up to 2010. What is the symbol?
Thanks
Relmor .... what do you think of this play down in the .32 range... bottom?? reentry??
How are we looking overall technically? I could use another quick rundown to boost my confidence on this....
