GO
Loading...

Why You Should Buy/Sell GM Stock: Pros

On the news Wednesday that the federal government is selling off shares of General Motors, traders Guy Adami and Karen Finerman took opposing sides of the trade.

"Ask yourself this: If this 'fiscal cliff' is going to get resolved in some meaningful, why would the Treasury or some arm of the government, sell a portion of their stock ahead of it. Just something to think about. Maybe they know something that the rest of us folks don't know," StockMonster's Adami said on "Fast Money."

Adami also pointed out that the automaker faced challenges.

"Although the stock has performed reasonably well over the last couple of months, those problems still exist," he said. "And they have an inventory problem as well that'll manifest itself in the form of discounts and rebates and what have you going forward."

Karen Finerman of Metropolitan Capital Advisors wasn't subscribing to that outlook.

"I cannot believe that one hand of the government knows what the other one is doing and is front-running the 'fiscal cliff' talks. I mean, it could happen. Stranger things, I suppose, have happened. I don't buy it," she said. "And if they were front-running, if you had great inside information, would you just sell a little? I'd be out."

Finerman also saw GM as a different company than the financially troubled one that needed federal help years ago – and its valuation was "cheap."

"It's like AIG at $32.50," she said. "We may not see that print again."

Trader disclosure: On Dec. 19, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dan Nathan is long BAC DEC 9.5 PUTS; Dan Nathan is long RIMM DEC 12 PUTS; Dan Nathan is long MSFT JAN 26/24 1X2 PUT SPREAD; Dan Nathan is long HD JAN 62.5/55 PUT SPREAD; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL PUTS; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long JPM CALL SPREADS; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short SPY; Karen Finerman is short JCP; Karen Finerman is long GNC; Brian Kelly is long GLD; Brian Kelly is long XLB; Brian Kelly is long XLE; Brian Kelly is long VIX; Brian Kelly is long EWP; Brian Kelly is long EWI; Brian Kelly is long EWG; Brian Kelly is long JJG; Brian Kelly is long JJC.


Symbol
Price
 
Change
%Change
GM
---
AIG
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET