GM Inside News Forum - View Single Post - GM shares fall below $10 for first time since 1954

drew770 · 07-03-2008, 08:49 AM

I watched Fox Business News and they had a few anayslts to examine GM's situation. There was no spin or doom & gloom, just honest assessment.

First, in order for GM to stay in business past 2009 they will need to raise 15 billion dollars in capital. This will be difficult because the bankers are in trouble themselves and not into lending money like they use to.

Second, GM is only worth 7 Billion dollars & Ford is worth 10 Billion. At this low value GM will be dropped from the Dow. As GM no longer represent a leader in it's segment.

Third and the most important, GM has to change LEADERSHIP now!!! The current management has lead GM straight to the bottom and with no clear insight to return the company to profitablity. Everyone agreed that Rick Wagoner is not the right person to lead GM at this time. Yes, Rick has gotten better UAW contracts but the bad outweighs the good.

The time is grave and sad for GM. At a valuation of 7 billion dollars, GM is worth junk. Again, GM has to do drastic steps to save itself and that means to cut brands, close plants, layoff workers and change LEADERSHIP.

07-03-2008, 08:49 AM	#27 (permalink)
drew770 3.6 Liter SIDI V6 Join Date: Mar 2005 Location: Central Florida Drives: 2004 Chevy Trailblazer 2002 Acura TL 3.2 2006 N Posts: 1,088	Re: GM shares fall below $10 for first time since 1954 I watched Fox Business News and they had a few anayslts to examine GM's situation. There was no spin or doom & gloom, just honest assessment. First, in order for GM to stay in business past 2009 they will need to raise 15 billion dollars in capital. This will be difficult because the bankers are in trouble themselves and not into lending money like they use to. Second, GM is only worth 7 Billion dollars & Ford is worth 10 Billion. At this low value GM will be dropped from the Dow. As GM no longer represent a leader in it's segment. Third and the most important, GM has to change LEADERSHIP now!!! The current management has lead GM straight to the bottom and with no clear insight to return the company to profitablity. Everyone agreed that Rick Wagoner is not the right person to lead GM at this time. Yes, Rick has gotten better UAW contracts but the bad outweighs the good. The time is grave and sad for GM. At a valuation of 7 billion dollars, GM is worth junk. Again, GM has to do drastic steps to save itself and that means to cut brands, close plants, layoff workers and change LEADERSHIP. __________________ Don't forget CRACK IS WHACK!!!