GM

The past week has truly been wild for the market, the dow is down about 400pts in the last five days alone. But honestly that doesn't preoccupy me much, as i'm confident that in the long run this won't affect me much.

I do have a stock that has taken a beating in the last week alone, GM. GM is the largest american car company, but it has been having a lot of trouble competing with the asian competitor. Their market shares are dropping as people acknowledge the higher quality car made by Japanese car maker. It has approximatly 300 billion dollars in debt and 36 billion dollar in cash according to Yahoo! Finance. The bookvalue of each share is 49$ and it's selling at 25$.

I believe that GM would be a descent investment for anyone looking to hold for long term. We all know about the car industry trend, it is a very cyclical market. GM has to start cutting cost, bring out more innovative car designs, focus on quality and all will be well.