GM is going down fast
11-10-2008, 02:48 PM
#1
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GM is going down fast
GM's Shares Tumble on Rising Cash Concerns - WSJ.com
Quotes from the article:
"Barclays now targets GM shares at $1, while Deutsche Bank slashed its target price to zero."
"Unicredit also said GM faces an imminent cash crisis. It said that, by extrapolating the average monthly $2.3 billion cash burn of the last 12 months into the future, without government intervention, GM will completely run out of cash by the end of April."
Quotes from the article:
"Barclays now targets GM shares at $1, while Deutsche Bank slashed its target price to zero."
"Unicredit also said GM faces an imminent cash crisis. It said that, by extrapolating the average monthly $2.3 billion cash burn of the last 12 months into the future, without government intervention, GM will completely run out of cash by the end of April."
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11-10-2008, 02:59 PM
#2
Yeah I was reading that today..
Devastating blow to the economy. I read also some analysts are saying there is no way for GM to avoid bankruptcy. Considering that very very very very few car companies can survive bankruptcy (forced to liquidate because who wants to buy a car from a company that cant service it in 5 years).
Devastating blow to the economy. I read also some analysts are saying there is no way for GM to avoid bankruptcy. Considering that very very very very few car companies can survive bankruptcy (forced to liquidate because who wants to buy a car from a company that cant service it in 5 years).
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11-10-2008, 03:05 PM
#5
Funny you said that. Im was listening to Sirius patriot news and they said when Obama meets with President Bush one of the things they are supposed to talk about is a possible automotive industry bail out.
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11-10-2008, 03:25 PM
#7
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11-10-2008, 06:43 PM
#10
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CC announced the closing of 155 stores last week, and then dropped the big Chapter 11 announcement this morning.
I was in a CC this afternoon, looking at laptops, and while there was some customer activity, the place felt like a morgue. You could tell the employees were, shall we say, otherwise occupied in thought.
It is not Certain Doom, though I cannot see how they plan to reverse course and return to profitability at this point- they've been loosing ground to Best Buy since long before the recent economic unpleasantness. My guess would be that they're simply finding credit harder to come by these days.
Anybody remember Tweeter? They've been sold to a liquidator, and come December they will be shutting the doors of every remaining store. Game over.
As to GM... There's a part of me that wants to say "Good riddance." I genuinely do believe that the company is getting what it deserves- not just for making sub-par automobiles, but for allowing UAW to become too powerful and tuning them into nothing more than a pensions-management company that happens to build cars as a hobby.
OTOH, their failure will not bode well for the domestic economy in general, as though we needed any more of that. Yet what's the alternative? Should the US nationalize GM? **** if that idea doesn't scare me...
I was in a CC this afternoon, looking at laptops, and while there was some customer activity, the place felt like a morgue. You could tell the employees were, shall we say, otherwise occupied in thought.
It is not Certain Doom, though I cannot see how they plan to reverse course and return to profitability at this point- they've been loosing ground to Best Buy since long before the recent economic unpleasantness. My guess would be that they're simply finding credit harder to come by these days.
Anybody remember Tweeter? They've been sold to a liquidator, and come December they will be shutting the doors of every remaining store. Game over.
As to GM... There's a part of me that wants to say "Good riddance." I genuinely do believe that the company is getting what it deserves- not just for making sub-par automobiles, but for allowing UAW to become too powerful and tuning them into nothing more than a pensions-management company that happens to build cars as a hobby.
OTOH, their failure will not bode well for the domestic economy in general, as though we needed any more of that. Yet what's the alternative? Should the US nationalize GM? **** if that idea doesn't scare me...
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11-10-2008, 07:11 PM
#11
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What about their cars is sub par...I keep reading that, but every ******* soccer mom has a Tahoe or Suburban. The Corvette is is a GREAT car. The new Cobalts are bad ***. The problem with Chevy is the retirement payouts...they have been around for SOOO long that have a **** ton of retirees. I read that several thousand $$$ of EVERY car go to health and welfare benefits. I am sure that Toyota (since we bailed them out years ago, and their entire country for that matter) does not have the same problem. There are 100s os thousands of jobs that would go if GM failed...although I am sure they will only file BK worse case and then restructure. And that might be the best option of all.
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11-10-2008, 07:55 PM
#12
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CC was a piece of ****. 10 years ago they decided it would be a smart idea to fire all their employees that were trained and made commission on sales, for **** faces that don't know their dick from their ***. Suffice to say, it's been declining ever since. Can you say Radio Shack employees?
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11-10-2008, 09:49 PM
#14
That's actually not a bad idea.
I'd rather see that than a bailout. On one hand we feed the UAW and make shitty cars. On the other hand we don't feed the UAW and make better cars. That some chunk of cash goes to Japan is irrelevant at this late stage. It's not like GM has been pouring profit into stockholders pockets of late. The suppliers made some money and they'll continue to do so no matter who is paying the invoices. Losing those GM jobs is what I'd like to see avoided.
I'd rather see that than a bailout. On one hand we feed the UAW and make shitty cars. On the other hand we don't feed the UAW and make better cars. That some chunk of cash goes to Japan is irrelevant at this late stage. It's not like GM has been pouring profit into stockholders pockets of late. The suppliers made some money and they'll continue to do so no matter who is paying the invoices. Losing those GM jobs is what I'd like to see avoided.
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