GM skids to 18-year low

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Dec 21, 2005 | 03:02 PM

#16

poSSum

Disciple

Joined: Nov 2000

Posts: 1,479

Re: GM skids to 18-year low

Quote:

Originally Posted by Z28x

...and that is with no Ch.11

As the price gets lower I worry more about GM declaring bankruptcy.

I don't think stock price has any bearing on them going Chapter 11. They've got a lot of cash to burn through first.

Quote:

Originally Posted by Darth Xed

I understand cutting GMAC free will help them, but it should hurt GM itself, being that GMAC is actually profitable.... I guess it'll depend on the selling price.

They only want to sell 51%. If GMAC is then able to borrow at non junk bond rates GM may actually make as much money on GMAC as they do now ... and have have an extra $10 billion or so in cash for operations.

Last edited by poSSum; Dec 21, 2005 at 03:04 PM.

Dec 21, 2005 | 03:03 PM

#17

johnsocal

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Joined: Dec 1969

Posts: 1,911

From: Southern California (SoCal)

Re: GM skids to 18-year low

Quote:

Originally Posted by Darth Xed

The most recent projections I have heard have GM going down to $16, and even $14 before it bottoms out...

If GM stock does fall down to those levels or even down to Ford levels ($8-$9) in early-mid 2006 it would appear like Wall-Street is predicting a GM banckruptcy. Ironically as soon as GM officially stated "IF" they were going bankrupt that stock would began to move higher since all the bad news has been "Baked in the Cake".

Last edited by johnsocal; Dec 21, 2005 at 03:31 PM.