GM Stock death spiral

[Delta6Echo]

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

 

[Ktulu]

With future models such as the Volt, Cruze, LaCrosse, Camaro and Beat and current stuff like Malibu and CTS I really don't see them going anywhere any time soon. If i had the dough, I'd buy way more than 20 shares right now. They'll rebound I have no doubt about that.

 

[alphatarget1]

Originally posted by: GeneValgene

Originally posted by: AmdEmAll
Ford is $2.66 a share... time to buy? Its hard to see them going out of business.

hmm...i'm wondering this as well....shoot

BAD BAD BAD. I don't see them going out of business either, but there is nothing that prevents them to declaring chapter 13 (or whatever) for reorganization, thereby wiping out shareholders.

 

[Random Variable]

Toyota's stock is having a very bad week.

 

[Ktulu]

Originally posted by: Random Variable
Toyota's stock is having a very bad year.

Chart

fixed

 

[robphelan]

and it gets worse... GM is coming out with a Hybrid Escalade getting a whopping 14mpg.. and a new Hummer T3... i don't know what they're thinking.

 

[Pepsei]

Originally posted by: jman19

Originally posted by: Pepsei
should i buy 20 shares?

i still need to fill out the 'outside brokerage approval form' so i can see if i can buy stocks.... been meaning to do tht....

Why not just trade where you work?

Or do you not feel like paying the higher fees?

higher fees.... even with employee discount..... i'm a cheap bastard

 

[SarcasticDwarf]

Originally posted by: PricklyPete

Toyota would happily manufacture the trucks/SUV's if people bought them. American SUV/Trucks have almost always been at least on par with their import counterparts...so American's were fine buying American. American cars have lagged behind imports for quite some time (although it is currently rectified in a lot of cases)...so Americans would rather buy the import than the American car.

ummmm....no

 

[JEDI]

Originally posted by: Fritzo
It's at 7.01 right now...if it goes below 7, I think that will be lower than when the company first went public---which was some years before Dwight D. Eisenhower was president.

I've only got like 20 shares, so no big deal, but it's interesting to watch history unfold on my desktop ticker

um.. GM is going to declare bankrupcy!

they've used up their $1B line of credit, and CAN'T GET MORE CREDIT!!!!!!!

Unless they magically become profitable, they are going to default on a few bills. (ie: employee paychecks.)

i predict GM will file chap 11 b4 Thanksgiving (due to cash crunch and not the usual reasons to file bankrupcy.)

 

[mchammer187]

Originally posted by: Ktulu

Originally posted by: Random Variable
Toyota's stock is having a very bad year.

Chart

fixed

no worse the the Dow, Goog, AAPL, Intc, MRK, GE,

and certainly much better than Ford/GM

 

[Thegonagle]

Originally posted by: ElFenix

Originally posted by: Fritzo

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Nothing to do with their build quality, it was their poor decisions in the early 2000's. It's actually a good lesson in greed and poor leadership.

Around 2000, Toyota and Honda were switching to eco friendly cars because they had foreseen high gas prices (they have The Force or something). GM decided to run the SUV train to death...until it was too late to stop the train from going off the cliff.

$3 gas hit, and GM execs acted like they were shocked that people didn't want 12MPG SUV's anymore. So, instead of costly retooling and redesigns, they decided to offer rebates. Huge, amazing rebates---to the point where they were losing money on each vehicle sold.

The rebates made new GM vehicles cheaper to finance than used vehicles. Therefore, used GM vehicle prices took a nosedive. When this happens, lease buyouts (GM's big cash cow) took a huge hit.

Which leads us to early last year, where GM is stuck with products nobody wants, and has to accept lease returns for used vehicles they can't give away. They tried to increase sales with...you guessed it...MORE rebates. It didn't work, and they finally realized they were going to have to make efficient smaller cars. They decided to do expensive redesigns and retooling at a time when they had negative cash flow, hence the layoffs we're seeing now.

Today, they're having to retool more plants and pay workers overtime because they can't get enough Cobalts and Aveos on the market to keep up with demand. They have a product people actually want, and they can't make enough of the damn things.

Someone's going to write a book on this some day with the title "How to Screw Up a 100 Year Old Business".

you seem to think that designing cars and retooling factories can be done overnight.

Looks to like me he's making the point that it can't be done overnight.

 

[DisgruntledVirus]

Originally posted by: JEDI

Originally posted by: Fritzo
It's at 7.01 right now...if it goes below 7, I think that will be lower than when the company first went public---which was some years before Dwight D. Eisenhower was president.

I've only got like 20 shares, so no big deal, but it's interesting to watch history unfold on my desktop ticker

um.. GM is going to declare bankrupcy!

they've used up their $1B line of credit, and CAN'T GET MORE CREDIT!!!!!!!

Unless they magically become profitable, they are going to default on a few bills. (ie: employee paychecks.)

i predict GM will file chap 11 b4 Thanksgiving.

I highly doubt that.

 

[Thegonagle]

How do I buy stock? Seriously?

Edit. Is E*Trade any good?

I've never done it before, because I've never had much extra money. It might be time for me to get started.

 

[Ktulu]

Originally posted by: robphelan
and it gets worse... GM is coming out with a Hybrid Escalade getting a whopping 14mpg.. and a new Hummer T3... i don't know what they're thinking.

Please do some research before posting idiocy. The Escalade Hybrid gets 21 city 20 hwy and will be produced in limited numbers. I don't hear anyone bitching about Toyota's Land Cruiser(13/18) or Seqouia (2wd:13/18,4wd14/19)

 

[KLin]

Originally posted by: mchammer187

Originally posted by: Ktulu

Originally posted by: Random Variable
Toyota's stock is having a very bad year.

Chart

fixed

no worse the the Dow, Goog, AAPL, Intc, MRK, GE,

and certainly much better than Ford/GM

http://bigcharts.marketwatch.c...&freq=1&time=8&x=0&y=0

OUCH! :Q

 

[Budmantom]

I was just looking at GM and now Ford, both have never been this low and I can't see them folding (but you never know), I'm think about buying a few shares just to see what happens...

Gm has done a lot of re-organization with it's management and renegotiating with the unions.

How much lower will it go.......?

 

[PricklyPete]

Originally posted by: SarcasticDwarf

Originally posted by: PricklyPete

Toyota would happily manufacture the trucks/SUV's if people bought them. American SUV/Trucks have almost always been at least on par with their import counterparts...so American's were fine buying American. American cars have lagged behind imports for quite some time (although it is currently rectified in a lot of cases)...so Americans would rather buy the import than the American car.

ummmm....no

care to explain?

 

[JS80]

Originally posted by: Corporate Thug
I guess that's what happens when you have crappy bloodsucking employees.

FIXED

 

[Ktulu]

Originally posted by: JS80

Originally posted by: Corporate Thug
I guess that's what happens when you have crappy bloodsucking unions combined with shitty management.

FIXED

fixed further.

It is in no way the employees fault. If they got lazy, complacent and overpaid it's because of the deals between the union and management.

 

[JS80]

Originally posted by: Ktulu

Originally posted by: JS80

Originally posted by: Corporate Thug
I guess that's what happens when you have crappy bloodsucking unions combined with shitty management.

FIXED

fixed further.

It is in no way the employees fault. If they got lazy, complacent and overpaid it's because of the deals between the union and management.

what is management supposed to do if the union extorts them to a deal and they can't just fire the union?

 

[IHateMyJob2004]

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Time to be politically incorrect.

The reason US automakers are having a tough time is because of the U.A.W.

It's hard to be cost competitive with foreign companies when those companies do not pay outrageous pay rates and give wonderful benefits. The UAW did it to themselves.

Actually, it is the pay rates for non-skilled labor that killed the US auto industry (because of the UAW). Benefits are kind of a moot point.

 

[dbk]

What happened to the $25B bailout that they got?

 

[Ns1]

Originally posted by: JS80

Originally posted by: Ktulu

Originally posted by: JS80

Originally posted by: Corporate Thug
I guess that's what happens when you have crappy bloodsucking unions combined with shitty management.

FIXED

fixed further.

It is in no way the employees fault. If they got lazy, complacent and overpaid it's because of the deals between the union and management.

what is management supposed to do if the union extorts them to a deal and they can't just fire the union?

fuck unions

 

[preslove]

Originally posted by: IHateMyJob2004

Originally posted by: Corporate Thug
I guess that's what happens when you make crappy cars.

Time to be politically incorrect.

The reason US automakers are having a tough time is because of the U.A.W.

It's hard to be cost competitive with foreign companies when those companies do not pay outrageous pay rates and give wonderful benefits. The UAW did it to themselves.

Actually, it is the pay rates for non-skilled labor that killed the US auto industry (because of the UAW). Benefits are kind of a moot point.

The thing is that German and Japanese autoworkers get government pensions and health insurance. America having the worst healthcare system in the western world and relying on employers to pay for their workers' health insurance is an important factor in why American manufacturers can't compete.

Japanese get the same or better "benefits" as UAW autoworkers, but it is the Japanese government giving it to them.

 

[Ktulu]

Originally posted by: JS80

Originally posted by: Ktulu

Originally posted by: JS80

Originally posted by: Corporate Thug
I guess that's what happens when you have crappy bloodsucking unions combined with shitty management.

FIXED

fixed further.

It is in no way the employees fault. If they got lazy, complacent and overpaid it's because of the deals between the union and management.

what is management supposed to do if the union extorts them to a deal and they can't just fire the union?

Fuck 'em. Play hardball. Not give in. They're only hurting themselves.