GM will saddle up to the bailout trough again and will get the cash it needs to make it a bit longer. Make no mistake, this is not a vote of confidence in the long term viability of this company. It still faces serious problems that go beyond liquidity. People have gotten t oo bearish though. Recently, a Deutsche Bank analyst put a target price of zero on the stock. That doesn't seem right, given the political/public relations fallout of letting a once venerable American brand die.
The 30 lowest rated companies in the ETFI Global Auto Makers Index and short ETF proposal lost an astonishing 63.9% in market value over the past year, compared to a loss of 37% each for the S&P 500 SPDR (SPY) and the Consumer Discretionary Sector SPDR (XLY). The index includes companies with market caps over $150M U.S. Dollars which are active in the following business segments: auto/truck makers, motor sports/recreation – e.g. Polaris (PII), motorcycles – e.g. Harley Davidson (HOG), and recreational vehicles – e.g. Winnebago (WGO).
I have confidence GM will make necessasry adjustments to ensure the merger with Chrysler goes through by the end of October; ensuing cuts WRT Plants and other hourly wage earners should help the company get back on its feet and in time the fruits of their labor will become apparent. I don't see GM going out of business anytime soon....
Given the global economic slowdown, lower commodity prices, and cool-down in former red-hot grow markets such as China; the accompanying table presents statistics and an overview of a global transport short ETF strategy for passenger airlines, auto makers, maritime, and trucking companies.
While I am still bullish on the prospects for railroads as a long investment idea and a hedge to these short transport ETF ideas, they will also suffer to some degree depending on the length and depth of the s
Poor sales + credit crunch+ legacy costs+global slowdown=crash. Their debt is junk. Their umpteenth turnaround plan has stalled. I'm waiting for them to declare bankruptcy before even considering investing a dime in it.
An overwhelming 78-12 vote by the Senate sends a massive $634B spending bill to President Bush, who is expected to sign the measure before the government's fiscal year-end comes to a close on Tuesday. The bill contains provisions for $25B in subsidized loans for automakers in addition to removing a ban on offshore drilling on the Atlantic and Pacific coasts. Participating companies from the auto industry would not have to begin repayment of the loans for five years and the proceeds are meant to be used in the d
With GM's debt rated Caa1 by Moody's, or seven steps below investment grade, the future of GM does not look to bright. Furthermore, Moody's rates the debt of GM negative, which means that further declines in debt rating are probable. GM is already paying a heatlh amount for their debt and especially for any new debt that they issue into the bond market. For these reasons, I am bullish on this stock and hope that they can pull through the current credit market and financial crisis griping the US and Global economy.
GM USA: Toyota = increasing problem, since Tundra now moving into formerly secure big truck arena. GM abroad: Like Toyota in Japan, and Hyundai in S Korea, a new competitor will emerge from low-cost China-- think cheaper than Hyundai exports selling into a cash-strapped US economy. Similar to Japanese car cos in the 1970s. Cheap and small good, big and gassy not good. GMAC: a financial company, built on top of consumer credit, for cars. debt: http://www.businessweek.com/ap/financialnews/D93BUHIO0.htm If GM debt owners are scared, equity owners should be REALLY scared. P...
Top 5 Companies by Market Cap Top 5 Companies by Stock Price Gain
The U.S. auto industry is poised to begin lobbying Congress for up to $50 billion in low interest loans to help them better compete in the global market by upgrading manufacturing facilities and paving the way for the production of vehicles with better fuel efficiency. Last year, Congress authorized $25 billion as part of an energy bill aime
I know GM had a rough year, but hey, they are a big company that should be able to take the hit, and the hint to go hybrid. They will be rolling out hybrid cars and their sales should "pick up" (pun intended) again.
I think now is a good time to buy in hopes that their late-to-arrive hybrid line up will bring their sales back up to par.
In my opinion one of the best structured Automobile companys in the world. While they are not Toyota or Honda, I see GM commitment to fuel-Friendly, Fuel free vehicles putting them ahead of the game down the road and well into the future. Currently with restructuring and organization underway the stock will continue to struggle untill many of it redundant assets are sold off.
GM is moving up sharply from a mult-decade low with very heavy volume. Company president has stated that GM has "seen the worst." With the price of oil collapsing, GM's product line will become more attractive to consumers as the worry about the cost of gasoline begins to dissapate. Stock should continue to move up from here to test initial resistance at 15. If volume continues to be strong, that resistance should be easily penetrated. Next resistance is in the 24 - 26 range. If oil prices continue to abate and stabilize at lower levels, sales of trucks and SUV's should experience a m...
Aloha GM & Ford
- Translation "DO NOT TOUCH" as the BIG TWO, didn't it used to be the "BIG THREE?," try to get their greedy little hands on their share of the govs 700 ...
Why Bankruptcy?
- By Barry Ritholtz - November 19th, 2008, 7:00AM
Sorkin perfectly summarized the GM situation, and what needs to be done:
First, let’s recog...
If it has leverage....Sell it
- The melt down seems to have begun. The Commercial paper market has totally frozen up. The freezing of the CP market has major ramifications. Only the...
GM to 0?
- DB came out today and said that they expect GM to go to ZERO, that is a big statement to make about an even bigger company. Personally I dont think the
