Posted on 11/06/2012 7:41:23 AM PST by tobyhill
President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.
Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.
(Excerpt) Read more at forbes.com ...
Ok, you go ahead and kid yourselves. I’m not going to waste time arguing with you.
I follow these numbers for a living ok. I constantly monitor these numbers.
What happened to “we killed bin ladin and saved the auto industry”
“I follow these numbers for a living ok.”
No, you don’t. Not if you don’t know to strip finco assets and liabilities from the operating company.
Go dingle norwood yourself.
A fake analyst with bad manners. Who’d of thunk it?
Look dumb ass. I posted actual numbers, go look it up. They post financials all over the place.
But hey, let me make it really, really, simple for you, or anyone else...
GM had over 100 billion in lt debt. That debt was owned by a variety of investors. When the company went bankrupt, the bond holders got about 8 cents on the dollar of common stock of new gm, along with some warrants. Then no longer own the bonds, nor are they paid interest. Follow me so far?
Ok, so that means that GM is no longer on the hook for the bonds, and they don’t pay the interest or the principal, right??
That DID NOT happen at F.
My point is, that the lack of expense in paying interest or principal on the debt, GM has a massive cash flow advantage compared to before, and since F DID NOT default on THEIR debt, they have a much, much higer operating expense than GM.
There, I wasted some time on you, I’ll write it off as a charitable expense.
If you want to argue what I just wrote, humor me, and prove how stupid you are.
Do it right this time, no bailout and wipe out the unions and their benifits/pensions!!!!
“That DID NOT happen at F.”
No, it didn’t. They hocked everything, including the blue oval. All those assets are back, unencumbered by debt.
I’m astounded that someone who claims to be an analyst would only look a Ford overall, and not separate the operating company from the finco. They are not the same. S&P and Moody’s (for what they’re worth, which isn’t much) give them separate credit ratings. There’s a reason for that. Think about what the debt of the operating company is used for vs. what the finco uses it for.
You claim that GM’s balance sheet is in much better shape than Ford’s. It is, but the balance sheet isn’t all that matters. Ask yourself why GM’s credit ratings, overall, are lower than Ford’s.
You mention how GM went bankrupt. No, they didn’t. The GM North America subsidiary went bankrupt. The rest of their world-wide operations were unaffected by that.
You may be an analyst. If so, you’re still learning. Keep it up. Trust me - strip out the fincos, and keep working on your CFA.
I read the entire article, which reinforces the long trend of crappier management at GM, followed by still crappier management.
The jist in the article is that GM’s crappy management settled for mediocrity, in the design of the 2013 Malibu, which finished last in comparison to the rivals.
Ford on the othe hand is designing cars which compete favorably, with the best in the world.
Huyndai us building amazing vehicles, some right here in America.
European, Japanese and Korean makers build cars for who they plan to have as customers for the next 40 years. GM builds cars for people that will be dead in ten years.
The head of VW is checking out the Huyndai competition, not GM. Very telling.
Guaranteed repeat bailouts reinforce crappy management, who survive, mediocrity or not. In the USSR they would shoot the head of GM, but here we give him raises and stock options, probably a future in the K Street lobby industry.
“..another dirty management rick to scare us.”
“Studebaker will be here when you’re dead and gone!”
-UAW workers when told the Studebaker plant in South Bend was closing in 1964. Two years later the last of the company’s cars rolled off the Canadian assembly line after 114 years of manufacturing wheeled vehicles.
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