The GM IPO (initial public offering) was strong, roaring out of the gate.  Currently noted at $35.67/share, this is an +8% gain in a day.  Not bad, when you consider the alternatives of a CD paying 1.5% in the bank – for a year!  On the other hand, the risks associated with GM are measurably higher.  For investors who did not have the inside track on IPO shares at $33, they are presented with a choice…

Do I pay up, or wait for “price discovery”.  At the Stock Market Companion, we teach investors to wait for odds to be stacked in your favor before you invest.  With GM, it is impossible to know your risks without at least a little time to see how this current price holds.  Who wants to “pay-up” only to find that they “paid-out” the UAW or the government, and see the stock come down -10% or more?  At this point, at a minimum a week or two is necessary to see if the initial IPO investors are desiring to take their cash.

In stock investing, patience is trump.

Meanwhile, over at the Philadelphia Fed their survey of area firms showed much better results than the readings we had from them in the summer.  Philadelphia area firms reported an increase in employment and work hours.  That’s good.  Read here for more – directly from the Philly-Fed.

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Please remember – at the Stock Market Companion we do not and cannot give individual investment advice. According to the State of Washington RCW21.20.005 the Stock Market Companion is not a Registered Financial Advisor and we do not render any advice on the basis of the specific investment situation of a particular individual. This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should our Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  Please seek the counsel of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.

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