Stock market: Why its so difficult to know what to do
One of the stocks I own is General Motors. I have spent considerable time researching it before buying shares. But today I came across 2 articles that totally contradict each other-- one rating it a BUY, the other rating it a SELL! (Note: Sometime they rate a stock a "Hold", which, could mean they recommend neither buying or selling it-- or it could also mean they haven't a clue about what's going on with the stock but are trying to appear intellingent 
).
For a person not willing or not able to research it thoroughly themselves, after reading these two articles-- well, its confusing, to say the least.
What would you do?
1. Recalls Drag General Motors Down to SELL
--> (6/25, Zacks)
On Jun 25, 2014, Zacks Investment Research downgraded General Motors Company (GM)to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold).
Why the Downgrade?
General Motors has been facing extensive negative media coverage recently over a spate of recalls as well a large fine. This has led to downward estimate revisions over the last few months.
2. TheStreet Ratings team rates GENERAL MOTORS CO as a BUY
with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
...
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Disclaimers:
1. I currently own shares of GM.
2. Nothing in this article is meant to be a recommendation to either buy or sell any stock or other security, or to treat, diagnose, or cure any disease or form of mental illness.
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There's a saying on Wall St:
So here's a five day chart of GM stock price.
Up today...but will it last? (Only da Shadow knows!!!
)
I could be wrong...but I rate it a "HOLD". I personally am currently not buying more, nor am I selling any of the small amount I currently own. (May buy a little more on dips...?)
(FWIW, at this level, GM stock currently pays a dividend of about 3.3%. Off its52week high. Its estimated P/E going forward is anywhere from 7 to 9, estimated PEG = 0.54). Off (Link)
When someone makes a smart move-- sees things in advance, sometimes its not easy to know if its due to insider trade (or some other illegal manuever) or whether they are just really smart. (And, in rare cases, occasionally someone is just lucky). If/when allegations are investigagted, more often than not facts come to light that we aren't aware of.
I am not familiar with all the details here.
I do trade a fair amount and one thing I've discovered over the years is that no matter how much you think you know, there's always the possibility of some hidden factor-- or unexpected event-- in play. So, a really smart investor takes that into account.
One of these factors is unfair activity by some major entity-- insider trading, high speed trading , etc. While I would like to see the government be more aggressive in prosecuting these cases, unfair and illegal practices always exist & always will. So I trade with that in mind.
FWIW I recently bought shares of GM. I lie the stock, its now one of my larger holdings. (Although I am not recommending buying or selling it).