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"I really can't believe you've recommended purchases of GM and F without a disclaimer stating that it's HIGHlY speculative.

Where is the Margin of Safety on this purchase?
Where are your calculations for value?
Is this based on CHART alone?
Based on supposed PUT writers?

I've spoken with an options dealer, and was told that the credit guys were BUYing this put paper at ANY vol up until the Kerkorian announcement. It's clear that the credit guys are on top of this situation. And you say the chart SHOWS accumulation.

Do I need to provide you evidence of ownership? 88% institution, 9% insiders - leaving about 1.5% for the public. And we all KNOW that GM is in the Dow 30, plus many other indexes sp500,1500 yada,yada. These ETF's , index funds and institutions, as you KNOW, MUST own this stock, specifically GM, and by their own LAW, can't sell it - sure they can UNDERweight it.
My point being, there are NO seller's, just one buyer, whose intentions are unknown. Now I am not proficient in bankruptcy plays, but it's been written in various industry publications (WSJ) that a bankruptcy could be a play.

With all this, how can you recommend buying this without an ABSOLUTE speculative warning???" /WaltinNY

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And this is my response:

To onesleepingbear, and any of his or her friends,

Please re-read my statement in the article: "Traders known as bottom feeders are taking a risk by accumulating shares of companies that face debt burdens like GM and F."

Is that not a speculative warning?

Maybe you would like me to put it into block letters? "TRADERS KNOWN AS BOTTOM FEEDERS ARE TAKING A RISK BY ACCUMULATING SHARES OF COMPANIES THAT FACE DEBT BURDENS LIKE GM AND F."

Chill out; I have given my assessment of the fundamentals of these companies in the past. Besides what I am doing today is merely pointing out that (1) a knowledgeable senior financial advisor has provided me his opinion, which I passed along because I thought readers should have access to it, and (2) pointing out to readers that they ought not to have a panic reaction on receipt of bad news (on stocks they hold); that the market has anticipated news like this and is a discounting mechanism for info it expects will happen in the future.

As I wrote: "... it pays to closely watch the related share trading during the long-term cycle bottoming phase." I did not write: BUY GM and/or F. Moreover, immediately after writing this item, I decided to do an article on the implications of rising bond yields, which I presume most traders know is a negative for high debt companies like GM and F.

Finally, why would anyone think I would write anything in this blog based on "supposed PUT writers" or any other influence but my own thinking on matters, and my desire to have readers do their own thinking.

That btw is why I blog, which is to initiate reader thinking, rather than any desire on my part to make recommendations. I trust most readers understand. /Bill

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I'm glad Walt in NY is reading my blog and thinking about capital markets; but I wish he or she wouldn't do so much sleeping. ;-)