GM stock down $1.10 to $3.26/share
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
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Joined: Aug 2001
Posts: 2,400
From: Michigan's left coast
Even if the government steps in and allows GM to avoid bankruptcy, the shareholder equity will be greatly diluted by whatever action the Feds may take. I thought that the market would wise up to this earlier, but apparently it took last week's "earnings" report for people to figure out what should have been obvious for the past couple of years.
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Joined: Aug 2001
Posts: 2,400
From: Michigan's left coast
http://money.cnn.com/news/newsfeeds/...5_FORTUNE5.htm
The suckiness is about to enter a whole 'nother phase.
Credit insurer Euler Hermes (425403.FR) has canceled insurance protection for suppliers of General Motors Corp. (GM) and Ford Co. (F) , two people familiar with the matter told Dow Jones Newswires Monday.
According the sources, deliveries from the suppliers weren't covered by insurance in the last two weeks, as the risk of the car makers failing to pay them for deliveries is too high.
According the sources, deliveries from the suppliers weren't covered by insurance in the last two weeks, as the risk of the car makers failing to pay them for deliveries is too high.
The suckiness is about to enter a whole 'nother phase.
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Joined: Feb 1999
Posts: 27
From: Wilmington, DE
http://finance.google.com/finance?fstype=bi&q=NYSE:GM
75 billion in short term trade notes, payables, and accrued expenses and a scant 19.7 billion in cash to cover it coupled with a quarter where the GROSS PROFIT was nearly a negative billion dollars. Staggering.
75 billion in short term trade notes, payables, and accrued expenses and a scant 19.7 billion in cash to cover it coupled with a quarter where the GROSS PROFIT was nearly a negative billion dollars. Staggering.
Last edited by MrBonus; Nov 10, 2008 at 01:31 PM.
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Joined: Sep 2002
Posts: 9,705
From: Oakland, California
Registered User
Joined: Sep 2002
Posts: 9,705
From: Oakland, California
S&P REITERATES SELL OPINION ON SHARES OF GENERAL MOTORS (GM; 2.57):
Despite the apparent rebuff in congress of the Detroit 3's leadership, we expect a government assistance package to be made available for the domestic automakers. While the program we expect is not a panacea, we believe that, with the current fragile economy, the government should not risk further disruption from a ripple effect from the failure of a major automaker, as the economic costs could then be greater than the aid. We think automakers and related parties should submit to strict terms, including showing a timetable to profitability, as a precondition to accepting aid. -E. Levy-CFA
Despite the apparent rebuff in congress of the Detroit 3's leadership, we expect a government assistance package to be made available for the domestic automakers. While the program we expect is not a panacea, we believe that, with the current fragile economy, the government should not risk further disruption from a ripple effect from the failure of a major automaker, as the economic costs could then be greater than the aid. We think automakers and related parties should submit to strict terms, including showing a timetable to profitability, as a precondition to accepting aid. -E. Levy-CFA