How can you actually show a timetable to profitability, when NOBODY has any idea how low the economy will go, or how long it will take to recover???d

I can ask my Rott to paint my house............... and he will look at me with a big ol silly "ok mama, whatever you want," on his face..................... it doesn't mean that he has the actual ability to do so.

 

After all, both Ford and GM have been completely unable to show timetables for a return to profitability even during economic upswings...

 

Don't forget hold means sell most of the time. Especially in a market like we have now. Then when a sell rating comes out it sometimes means you "should have sold over the summer".

GM and the three have a deal for some cash supposidely. Shares popped hard on the news.



A timetable can be made without regards to the economy. They have to start to restructure and layoff. Sell assets, close plants, cancel product,etc. So essentially the deal is you are bankrupt and have to write out your plan as if it was official.
It essentially is over for them. They have taken there last loan and need to spend all the time shrinking the company. It's not lets sell some cars and we'll be fine time.

 

so the question is...

let's say that GM does get the goverment loan...

what would they do next? what would happen to the stock if they do get the money? it is a 3.01 as I type this....

 

GM, if it gets its $12B share of the loan, would stay in business for another six months. That's it. Does this still sound like a great investment opportunity?

 

They would come back to ask for more as was painfully evident in yesterday's testimony/questioning...in any case, the stock isn't going to rebound anytime soon no matter how many loans they get or how much they get...they are going to have to prove they have a long-term future before the price rebounds.

No one is expecting a real turnaround in the economy until well into 2009 or even early 2010...how long do you any of the Big 3 can hold out without seeing a significant uptick in sales even if they get their money?

 

Neither GM or Ford will be good common stock investment prospects. If they get some aid the stocks will pop, then drop back down.

If you really must own some of either of these guys save the money and wait till we get more info. Jumping in in 08-09 isn't gonna work. If things pan out for them in the positive the time will come to own there stock again. Don't worry, no one will get left out. You'll see it coming and have plenty of time to build a position.

 

I have $500 burning a hole in my pocket. I'm seriously considering buying some GM stock.

 

i just don't see how GM can fail... and just disappear like that... if it does I think we ALL would have more serious issues than 500 or 1000 dollars that we put on GM stock.

but... it has the potential to retun 10x in 3 years.... why the hell not?