Thread regarding General Motors layoffs

GM stock is showing a dead cat bounce, at worse a double top potential (less likely). Give it a little time, it'll show up soon.

No one's going to be immune.

Ford stock has been $11 since 1993.
Stellantis stock lost 50% of it's value since March (it's @$13).
GM stock has almost doubled YOY @$55.
Nissan is 1/3 of what it was in 2001 @$4.
Mercedes was at $73 in January, $53 today.
BMW was $114/share in March and is $72 today.
VW was $128 in March and is $80 today.
Toyota was $251 in March and is 170 today.
Honda $37 in March and $25 today.

You can see where the auto industry is headed. Ironically, the only company doing well and has a great stock price is...General Motors.
For all of the hand-wringing, this is ironic. But how long can it last when the industry is struggling and headed for rougher waters?

Lol, twelfth post down counting this one.
Post ID: @gdf+1vBEe48Z

9% down in a single day, go GM. Still think $28 price tag isn't possible? Give it some time and let price do what it's going to do. You know if $28 hits, that's going to require much larger layoffs at GM. People know this right?

I will say there's a chance at a cup and handle pattern (which is good) and negates much of this, or a big M pattern, which is very bad. I'm betting on the M, but nothing is ever 100%. Just like Stellantis that lost 50% in two quarters. Just like Ford that fell from $21 to $11 today, I still think $5 is in the cards. GM is next. Will it defy what the others are doing? Maybe, but I'm not betting that way.

Record high stock market. Mostly what appears to be in or entering parabolic state. Room to run higher, or room to reverse and run lower, odds favor one over the other. Companies downsizing silently across the US. Yeah, it's coming. Brace.

Recession... Great Recession... XXXXXXXXXX.

What comes next in the pattern would you think?

GM stock 11/25: $61
GM stock 11/26: $54
Why? Change is coming and the market is pricing it in. This is going to rattle some cages.

Right on 4ngq+1vBEe48Z.

Like anything in life, there's a time and place to optimize your positioning in life. I get that sometimes you aren't able to do this, but failure to plan isn't ideal, and is less desirable to just wing it.

There was a time where you could get a car loan for .99%, 1.99%, 2.99%. There was a time you could grab a home loan interest rate for 2-2.5%. That was the time to position yourself and make choices leading up until today, where you didn't need to participate in the percentages of today. I personally fought with my lender to close on a 2.25% home loan asap, because I knew what was coming. In less than six months, rates were doubled from where I locked in. And while CD's and bank rates weren't paying jack, you could set yourself up nicely with other avenues. Fast forward to today, everyone is working from a disadvantage if you need either of these activities. Times are tough if you know what you're doing, and taking advantage of the opportunities. I don't recommend compounding it by ignorance.

The system is designed to take advantage of people. I encourage everyone to at least put up a little fight. Take their money while it's cheap, not while it's expensive. Use your credit score to your advantage, if it's optimal. There's a time and place.

For those that have done absolutely nothing today, yet wield an incredible credit score, you have the power today, to put $2500 in cash into you hand, and ten thousands of dollars in vacations into your inventory - simply by using your head, and doing what you already do today. One of many benefit potentials available to many people if you know how. It doesn't require a second job at all, some companies are just begging to give money away to those that are financial responsible - free with exception to the taxes owed upon free income.

Businesses reward those that take advantage of opportunity, and fleece those that don't know how. People fleece themselves, by not knowing how to money management, and by not learning about monetary history. Regrettably, not everyone gets to win, and not everyone gets to take advantage of opportunity. You may not like this response, and you don't have to, but it's the real world - and it can hurt.

The only entity you can never lie to or lie about, is your pocketbook, wealth, and portfolio. Only you control this. I've been laid off as a contractor to GM, more times than most of people have ever held jobs in their lives. It's not because I su-ked or anything of the kind, it was because GM has a universal policy to severe contract after so many years, but rehire them into different roles later. I learned to become a professional interviewer, and a jack of many disciplines in my profession, a profession many people don't get to achieve if they're locked into one skillset over many years. I learned more well rounded roles and skillsets, than most people ever will. With all that said, despite all those setbacks, GM has never influenced my endgame financial results. You make your own luck. You can too.

Now, when this bubble pops, who do you think is going to be positioned the best to take advantage of the chaos? You are either ready, or are a participant in the fall. Don't participate in the fall. Position yourself right.

25% of car purchases are made in cash because of the high interest rates.
Where does the cash come from?
Home equity loans.
Do you see where this is headed?
Beyond this, subprime auto loans are growing in delinquencies.
The debt itself is parabolic.
Check it out:
https://wolfstreet.com/2024/11/16/auto-loan-balances-burden-subprime-prime-delinquency-rates-and-subprime-dealer-americas-car-mart-in-q3-2024/

The bubble has popped.
Car sales are going to decline.
High interest rates. Banks restricting loans due to delinquencies. Frustrated buyers having to roll the balance of their last cars into new loans. SLT has this information, which is why they are cutting and threatening people.

@2lxh+1vBEe48Z
He blew his severance on a depreciating asset. So smart! Thinks he's sticking it to GM. Lol

@1pyi+1vBEe48Z

Sounds like it was a good thing you left. Don’t come back.

@1htp+1vBEe48Z

Mary has the bestest hugeliest plan, and she'll tell you what it is in 2 weeks.

I absolutely love the Toyota which I bought with the severance package money that I received from GM. I warmly remember driving my GM manager Cadillac CT6 over to the Toyota dealer and paying cash for my shiny new Toyota. It just warms my heart when I think about it.

Toyota is a much more reliable vehicle anyway.

This is an awesome conversation. Thank you @dxy+1vBEe48Z and @gdf+1vBEe48Z.
Yes, Mary has failed to execute on all of her grand goals. She should not be above scrutiny. We should also hold her accountable for wasting over $10 billion on stock options instead of investing in new product development, training, new equipment, etc.
As a regular American, let alone an employee, it looks very bad to me that she cavalierly (is that a word) spend that much on stock options but is putting the serious hurt on her own employees to shave $2 billion. It not only looks insensitive but also reckless.

"In order to win in this competitive market, we need to optimize for speed and excellence."

Does anyone have any confidence in SLT executing well on that statement? Can a corporation cut their way into speed and excellence? If so, I challenge anyone who believes so to explain how. Where is the plan? Did anyone from upper management clarify how they plan to "optimize for speed and excellence" other than cutting people? It really falls flat.

MB invested billions to superficially pump up a stock and failed to invest in overall strategy of the future. Gm failed multiple times in their goals of being the leader in EVs, failed at autonomous drive and failed at developing technology. Think cr-ppy software

As one of the largest shareholders, no surprise from her.

I like some good stock discussion. TA and chart reading gives you eyes into the potential direction of the market.

I would say which lens are you looking through?

The day charts are showing that MACD has crossed and it's likely down from here. The short term RSI says the decline is temporary oversold, but the longer term RSI says there's much more room to fall.

What most people should be concerned about are the numerous gaps in the charts from November 28, 2023 to now, which is the tell. A trader will argue that not every gap does get filled. Most of the time they do, but not always. However, a large series of gaps, will eventually get filled, and it's not likely an if. That 11-28-23 stock price tag looks to be around $28.68, which ironically aligns with the supposed expert talking heads calling for a 50% market correction.

The weekly chart doesn't show anything immediately alarming. The monthly chart shows the potential of arriving to a $28.XX price naturally up and into about June 2026. Just short of any black swan event, it could fall naturally, or it could fall through an event. We will see what happens, but either way we are in a deleveraging economy now. That will soon to have effects within the market.

But, here's what you may want to know. I mentioned nothing about what the automaker is doing. No news. No layoffs. Why? Because while everyone actually believes it matters in charting, you will find out how little any of that actually matters. What matters in regards to the day to day, is that you continue to work or find work, to continue to take care of and to provide for your family, and take a breathe. Stock prices are going to do what they're going to do, and chart reading, and applying TA, it gives to you the eyes, and a window into the possibility of market movements.

To cancel out anything I've said above, price would need to exceed it's highest price point set in Jan 2022 at $66. At this point in time, we assume that to be the highest point, Nov 2023 it's low, todays price it's showing as a potential lower high from Jan 2022. If that confirms, that means the next part of the pattern is a lower low, and a further decline than even Nov 2023 at $28.xx.

I forced myself to learn stock charting. Hated it, until I loved it. Besides learning to properly type, as what I consider the greatest universal skill to ever learn, I believe charting to be the next best skill in my humble opinion.

@sms+1vBEe48Z
I agree and will not feel sorry for GM because they offshored American work to China and were burned by tariffs.
Predictable that GM will have to eat profit losses because they simply can’t pass the tariff cost to broke consumers. That means smaller stock option trades for SLT. Poor things.

If tariffs happen, then imported parts especially from China will cost more, which means cars will cost more.

The middle class mostly can't afford new cars now, and that'll just make buying just about impossible.

Expect car sales to go way down.

Hard to say. Often times stocks pivot with the rest of the market. The financial impact of those layoffs may take time for shareholders to comprehend and price into the stock. In the meantime and more importantly, I hope the SLT is done with layoffs and those that were let go can find a job in short order.