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GM stocks to hit $55 to $58 by the end of the year...However, there is a one problem that still lingers....How can Bear Sterns' Peter Nesvold down-grade GM less than two weeks ago and now all of a sudden Eric upgrades the stock to buy. Merrill Lynch has all along advocated "buy" since the contract. With a 4 year wage freeze in place....the bigger picture is with the core puppliers and there ability to now lock in long term contracts with everyone doing business....a win-win-win and quality will greatly improve along with it.

That's good news for Verizon. NewsVisual posted a map on the company's board connections that looks interesting: http://www.newsvisual.com/newsvisual/2007/10/verizons-board-.html . The corporate ties and experiece that is shown by Verizon's directors could have had a hand in this upgrade.

Why did UBS up-grade GM stock?...Two weeks ago, Peter Nesvold (Bear Sterns - manufacturing...not autos) down-graded GM to under perform. A week later, UBS up-grades to buy. Merrill Lych has had a buy for the month of October. Goldman & Sachs has been buying GM for 6 months....Russian investors have been buying for 8 months....Why did Nesvold down-grade? Very questionable...... unless he has a problem interpretating the new UAW/GM contract and still makes a down-grade of a stock ??? GM stock will reach $55 or $58 by the end of the year...

The recent analyst upgrade of GM's target from $24 to $48 is music to the ears to those of us who have patiently waited for this grossly undervalued stock to be recognized for it's true value and fundamental strengths. As a 38 year career salaried retiree who has invested in and accumulated GM stock since 1965, I have witnessed and been a part of stock highs in the mid $90's in 2000, and the subsequent decline to $18 two years ago when it was widely reported that bankruptcy was iminent and inevitable. Didn't happen. What did happen was a historic settlement with the UAW that many of us never expected to live to see which takes tremendous legacy and operating cost out of the structure, greatly levels the playing field, and positions GM to again compete with the world. With the stock now approaching $40, hitting the $48 mark ought not to be that difficult and, as the expected vastly improved earnings begin to kick in, a return to the more "normal" ranges to $60 to $80's is my bet to happen. Doubts? Take the time to dig at the details of the historic cost reductions from the new agreement. Still don't think so? Check out the current product line that is cost/quality/styling/warranty competitive with anyone. And, the new products in the pipeline (Malibu, Enclave, Camero, Volt, etc., etc., etc) will begin to pull even more buyers back into GM products as they come on stream.

You heard it from the ole optimist. But this time it feels different because it is different. The General, reported dead and counted out, is very much alive with a strong heartbeat and serious about competing with the Toyotas and Hondas. Don't take my word for it - do your own investigating and reach your own conclusion. Remember this prediction and where you heard it: $85 GM by end of 2008.

John McBaine