General Motors (GM) NewsBite - GM Plans to Slash Costs

Posted on Wednesday, July 16, 2008 1:47 PM

General Motors Corp. (GM) opened at 10.11. So far today, the stock has hit a low of 9.87 and a high of 11.43. GM is now trading at 11.19, up 1.35 (13.35%). The stock hit its 52 week high of 43.20 in October and set its 52 week low of 8.81 in July. GM has been dropping for the past year. General Motors announced today it plans to slash $10 billion in costs over the next 18 months through white-collar job cuts and a wide range of other spending reductions. The company is also going to try to raise $5 billion through financial markets or asset sales to beat the tough car market. Technical indicators for the stock are bearish and steady while S&P gives GM a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bull-put credit spread below the $5 range. GM stock could fall up to 55.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]