GM shares hit 60-year low on cash burn worries

[Amerigo Vespucci]

Source: Business Week

Shares of General Motors Corp. plummeted to their lowest price in more than 60 years Monday on increasing worries about accelerating cash burn and mounting losses at the automaker.

GM shares dropped 97 cents, or 22.3 percent, to $3.39 in morning trading. They earlier plunged as low as $3.02.

That marked the automaker's lowest share price since Dec. 2, 1946 when it hit $3, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

The drop came despite an increase in the overall market stemming from China's recently announced $586 billion stimulus package that was seen as a benefit to U.S.-based multinational companies. The Dow Jones industrial average rose more than 90 points.

Read more: http://www.businessweek.com/ap/financialnews/D94C5KPO0.htm

[dkofos]

1. Could the UAW afford to buy a majority and take over?

[John K]

6. The would have the unions put their money where their mouth is

I like it. They will then be owners of their success.

[8 track mind]

7. ya know that might just work....

Thats a damn good idea!

[LiberalFighter]

9. If the UAW could afford it that means other groups with much more resources could do it.

And more likely.

[John K]

11. The UAW has a vested interest

Other groups may not look at the UAW as an ally, so it would be the same adversarial situation as now.

[LiberalFighter]

13. And you think they wouldn't be concerned about it if they can pick up a company for pennies?

[zbdent]

2. buy now so that when the Govt. does bail them out,

you'll get your share of the bribing of the stockholders, instead of fortifying the corp. ...

:eyes:

[John K]

5. Not a good strategy

If the government has to buy them, they will probably zero out shareholders.

[John K]

3. GM's Shares Tumble on Rising Cash Concerns

Source: Wall Street Journal

General Motors Corp.'s shares Monday plummeted to a price it hasn't seen since 1946, on rising concerns the auto maker will run out of cash in the next few months and that any government bailout won't be beneficial to shareholders.

Shares of GM fell 23% to $3.34 in late-morning trading, after earlier hitting a 62-year low of $3.02, as analysts at both Barclays Capital and Deutsche Bank cut their target prices and investment ratings on the stock.

Barclays now targets GM shares at $1, while Deutsche Bank slashed its target price to zero.

Read more: http://online.wsj.com/article/SB122633261247513857.html

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Should we let GM go under?

[John K]

4. GM's Shares Tumble on Rising Cash Concerns

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[lutefisk]

8. Google- are you listening? Buy GM (Google Motors) and turn it into a "green" company

Use petty cash (you won't even miss it) and strike a deal with the federal government to make the deal even better. Use the manufacturing and design assets to go all out producing green Google Motors cars and trucks.

[LiberalFighter]

10. The CEO and the rest of the board should be fired immediately.

Rick Wagoner

In 1992 he was named GM's chief financial officer, in 1994 he became executive vice president and/or president of North American Operations, and in 1998 he was named president and chief operating officer. He became president and chief executive officer in June 2000 and was elected chairman on May 1, 2003.


The guy is a failure!!

[dkofos]

12. That's how he keeps moving up I guess.