Big Companies, Small Prices: Citigroup, GM, & More…

There are a lot of awfully big companies whose stock prices are at historic lows right now. If you believe that eventually those big companies will turn things around (with the help of the Government in many cases) then it seems like there are some amazing deals available if you have the money available to invest.

Please note that I am not giving advice (I never give any advice on what stocks to buy.)  I’m only playing a game of “what if?” as in “what if these stocks go back to their previous levels, how much profit can I make?” Make of it what you will. But I do think you should consider that people who had the gumption (and the money) to invest during the Great Depression made a killing when stocks returned to their old prices (although it did take many years.)

I’m going to include the stocks current price and the stock’s peak price from the past five years. I then include what I’m calling the “multiplier” which is basically how much higher that peak price is compared to today’s price. That’s how many times my money will be multiplied if I invest now and that stock returns to it’s peak position.

All of these companies have a market cap of at least one billion dollars. They are all also at least 3X below their five year peak price.

Of course some of these companies may actually fall apart completely and in that case your investment would return you absolutely nothing. That’s a risk that some people can’t deal with taking.

Company - Symbol - Current - 5 Year Peak- Multiplier

Citigroup - C - 1.67 - 55.70 - 33X
General Motors - GM - 2.18 - 49.18 - 22X
Ford - F -2.10 - 15.85 -7X
Nissan - NSANY - 6.89 - 27.11 - 4X
Bank of America - BAC - 5.85 - 54.85 - 9X
Suntech - STP - 6.82 - 85.16 - 12X
Yahoo! - YHOO - 13.60 - 43.21 - 3X
Sun Microsystems - JAVA - 4.67 - 26.52 - 5X
Dell - DELL - 9.44 - 42.14 - 4X