GM near bankruptcy? Buy auto stocks?!

By Paul R. La Monica, CNNMoney
2009-4-13 12:39:35

NEW YORK (CNNMoney.com) -- General Motors' stock price has been stuck in reverse as investors seem to be betting that bankruptcy is inevitable.

Through Friday, shares of GM (GM, Fortune 500) were down 36% this year. The stock fell another 16% Monday afternoon after new reports that the government is pushing hard for bankruptcy.

A GM bankruptcy could cause tremendous upheaval in an already troubled industry. But interestingly, investors are treating the likelihood of a GM bankruptcy as an excuse to scoop up the stocks of many of its top rivals.

(Privately held Chrysler LLC has until May 1 to work out a partnership with Italy's Fiat or it could also enter bankruptcy.)

Shares of Ford Motor (F, Fortune 500), the only member of Detroit's Big Three that is not in imminent bankruptcy danger, are up 85% this year. The stock was even up Monday afternoon.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	GM near bankruptcy? Buy auto stocks?! By Paul R. La Monica, CNNMoney 2009-4-13 12:39:35 NEW YORK (CNNMoney.com) -- General Motors' stock price has been stuck in reverse as investors seem to be betting that bankruptcy is inevitable. Through Friday, shares of GM (GM, Fortune 500) were down 36% this year. The stock fell another 16% Monday afternoon after new reports that the government is pushing hard for bankruptcy. A GM bankruptcy could cause tremendous upheaval in an already troubled industry. But interestingly, investors are treating the likelihood of a GM bankruptcy as an excuse to scoop up the stocks of many of its top rivals. (Privately held Chrysler LLC has until May 1 to work out a partnership with Italy's Fiat or it could also enter bankruptcy.) Shares of Ford Motor (F, Fortune 500), the only member of Detroit's Big Three that is not in imminent bankruptcy danger, are up 85% this year. The stock was even up Monday afternoon.