http://biz.yahoo.com/ap/060524/gm_mover.html?.v=1

GM Shares Rise on Upgrade
Wednesday May 24, 11:19 am ET
Shares of GM Jump After Analyst Upgrades Automaker to "Buy"


NEW YORK (AP) -- Shares of General Motors Corp. jumped Wednesday, after an analyst upgraded the automaker to "Buy," the second such upgrade on the company this month.
Merrill Lynch's John Murphy said that based on discussions with the United Auto Workers union and industry sources, about 12,400 workers have already been asked to take buyouts and the rate of offers will pick up as the company's June 23 deadline approaches.

"Therefore, we now estimate that GM will be successful in pulling forward its planned headcount reduction of 30,000 workers by the end of 2008 to present day, which would represent a significant acceleration of its restructuring plan announced in November 2005," Murphy wrote in a note to investors.

The analyst boosted GM to his firm's highest rating from "Neutral," introduced a price target of $37 and increased his earnings estimates for 2007 and 2008, citing an expected speed-up of its restructuring plan.

Shares of the world's largest automaker surged $1.86, or 7.6 percent, to $26.34 in morning trading on the New York Stock Exchange. Over the past year, the stock has traded between $18.33 and $37.70.

Wednesday's upgrade comes just over a week after Keybanc Capital Markets also rated the Detroit-based company a "Buy," citing indications that Delphi, GM and the UAW will reach an agreement as early as June that will avoid a strike.

Merrill's Murphy also said the savings as a result of the buyouts, which will also allow the automaker to proceed with planed capacity reductions, will be close to $4 per share.

Murphy more than doubled his 2007 earnings estimate to $4.10 from $1.90 and increased his 2008 estimate to $5.25 from $3.15. The increase also accounts for an adjustment for the portion of earnings from GM's financial arm, which will be sold in late 2006/early 2007, Murphy said.

Analysts polled by Thomson Financial expect GM to earn $2.16 per share in 2007 and $1.74 per share in 2008.

 

I knew I should have bought at $19.

I bet it will be back up to $50-60 by the time the Camaro comes out.

 

I was watching a local news program's discussion of today's stock market and they actually said that GM was driving the market for a good portion of the day. I was like

 

Almost makes a person remember the good old days when GM was undisputed king of industry.

Although with their market cap so small nowadays, I'm surprised they can still be such a driver on the stock market. Perhaps it's perception as much as reality.

 

Pretty damn shocking given the past year and all the doomsday predictions of all those "experts".

And all this is mainly driven by the SUVs off of the GMT900.

Wait till the new 900 Pickups come out, the new Saturn lines hit the streets, the new Cadillac CTS hits the showrooms, and word gets out in mainstream news that GM is actually going to make the Camaro, all within the next 10-12 months.

The ONLY things that can possibly stop all this (outside a rather nasty recall on the Tahoe) is Delphi's upper management (...or rather mismanagement) or a deficit driven US economic meltdown.

As far as GM's own internal operations, the worse is behind it.

 

Where's BM at now?

Rick W.

 

Kicking and screaming probably.

 

I believe the "BM" has been "flushed".

 

Jim Crammer even gave GM stock a Buy on mad money the other day.

 

I didn't see that, must have missed it.

He has been pretty solidly against GM as a stock too up until now. He would always counter with a "Best of Breed" Toyota purchase.

For him to give GM a "buy", says a lot, IMHO.

 

http://biz.yahoo.com/rb/060525/autos...outs.html?.v=5

More than 20,000 GM workers accept buyouts: report
Thursday May 25, 10:43 am ET


DETROIT (Reuters) - More than 20,000 blue-collar workers at General Motors Corp. (NYSE:GM - News) have accepted buyout offers, surpassing the automaker's internal target with a month to go before the deadline, the Detroit News reported on Thursday, citing people familiar with the situation.

GM spokeswoman Katie McBride, while declining to comment on specific buyout numbers, said: "We are pleased with the acceptance rate so far."

The automaker, which made the offers to all 113,000 of its U.S. hourly workers, had expected 20,000 employees to come forward by the June 23 deadline, the sources told the newspaper.

GM will continue to offer buyouts to workers who sign up by the deadline as the automaker plans to take as many buyouts as it can get, the sources said.

GM shares rose more than 7 percent and its bond price got a slight lift on Wednesday after Merrill Lynch analyst John Murphy raised its rating on the automaker on signs that its cost-cutting program was moving faster than expected.

Murphy said there appeared to be significant interest in GM's buyout programs for its hourly workers represented by the United Auto Workers union, indicating progress in cutting GM's high labor costs.

McBride said GM was hiring temporary workers at some North American plants, partly to replace workers who have already left the company after accepting the buyouts.

GM also typically hires temporary workers in the summer to fill in for employees who are on vacation.

McBride said "a limited number" of employees have already left the company. She declined to be specific, but said the numbers have "exceeded our expectations."

Many of the temporary workers the automaker is hiring will eventually be replaced by GM workers from closed plants and Delphi Corp. (Other OTCPHIQ.PK - News) workers who are returning to the automaker as part of an earlier agreement with the parts maker and its union, McBride said.

GM is in the midst of a comprehensive restructuring, which includes closing a dozen plants and laying off 30,000 workers, to return its auto operations to profit.

GM's shares were up 4.83 percent at $27.79 in morning trading on the New York Stock Exchange.

 

temp workers??

are the "job banks" empty?