GM shares fall below $10 for first time since 1954

[Vinsetta]

Bree Fowler / Associated Press
NEW YORK -- Shares of General Motors Corp. plunged Wednesday to close below $10 for the first time in more than half a century, as investors shrugged off better-than-expected June sales and analysts raised concerns about the company's cash needs.

http://www.detnews.com/apps/pbcs.dll...TO01/807020411

[big swede]

A few more dollars and it's time to buy.

[Carver]

Originally Posted by big swede

A few more dollars and it's time to buy.

Only assuming they avoid bankruptcy.

[GM-10]

Whew...that's loooooow.

[Aprime]

I'm honestly starting to doubt they'll find the liquidity they need.

Gah.

[Ming]

Originally Posted by big swede

A few more dollars and it's time to buy.

That's what they said about Ford stock at 7 dollars.

F - Ford Motor Company (NYSE)
$4.41 -0.30 (-6.37%) Jul 2 4:01pm ET

If you'd invested $10,000 then, well, you do the math...

[MrMax]

Long time since I posted on here. My new job isn't so lenient concerning internet use. But I'm very troubled over these recent developments. I intend to invest at some point in the company, but... wow. I never saw this coming, and in such a short period of time. When stock hit $27 a share last year, I thought the turnaround was about to pick up steam, but I guess I was short sited. Now is as good a time as ever for someone to give me some optimism. I mean, I know whats in the pipeline. The new Cobalt, Volt, CTS Coupe (CTC), CTS Wagon, Diesel Silverado/Sierra, but... none of these hit the road until 2009 at the earliest... And with the rate GM is burning through cash... Is there reason for hope? Somebody tell me there is. Someone give me a reason to believe.

[CamaroCrazy]

It's hard to believe, that's the problem. Every automaker (ok, not Honda) is taking it hard right now. The whole market is in a downturn and if its not because truck sales are tanking, its because people who were otherwise considering buying a car (any kind of car) are holding off, probably to see just how bad things are going to get across the broader economy through the rest of the year. The Big 3 need cash and if they can't get it, I'm afraid what happens to one is going to happen to all of them.

[MrMax]

Originally Posted by CamaroCrazy

It's hard to believe, that's the problem. Every automaker (ok, not Honda) is taking it hard right now. The whole market is in a downturn and if its not because truck sales are tanking, its because people who were otherwise considering buying a car (any kind of car) are holding off, probably to see just how bad things are going to get across the broader economy through the rest of the year. The Big 3 need cash and if they can't get it, I'm afraid what happens to one is going to happen to all of them.

That would mean Chrysler is an indicator as to the condition of all The Big 3. Which means life is over. I don't think Chrysler is a complete representation, but I do believe that if either Ford or Gm go under, its over. For The Big 3, and the US economy, for quite some time. For shame...

[kenman923]

I think that the Government will have to step in and give them a loan guarantee. If GM goes under, the U.S. auto industry as we know it will be nonexistent and will wreak havoc on our economy even worse than it is now.

[Buickman]

the government should not bail them out. it is the direct fault of management, the Board for leaving Red Ink Rick in place, and the shareholders for keeping a useless Board. any guarantees or money given will only be wasted fruitlessly by a management team incapable of stopping the downward slide. much as I love GM and hate to say it, GM must be allowed to go under.

the writing is on the wall, negative $41 Billion in shareholder equity, and the same old goofy, cheeseball, money losing, distress merchandising SALES which are the reason we have gone downhill. I feel no sorrow or pity. they just wouldn't listen and now they are toast. too bad for those who will suffer because of Wagoner. as I said we don't need a Volt, we need a Revolt!

[logansowner]

If it hits $8.50 I'll buy $1000 worth. I think they will turn it around soon, they are finally getting the idea of what they need to be doing. You never know, it goes back up to the $40ish range...couple grand for not much effort.

really don't foresee bankruptcy, lots of buyouts hit them big over the last couple years, but they will soon reap those benefits.

[logansowner]

Originally Posted by kenman923

I think that the Government will have to step in and give them a loan guarantee. If GM goes under, the U.S. auto industry as we know it will be nonexistent and will wreak havoc on our economy even worse than it is now.

Surely unrepayable credit is the way to go here. I mean, look how great credit works for the government...and mortgage holders.

I don't think they will go under, but I also don't like corporate welfare.

[Buickman]

Originally Posted by logansowner

Surely unrepayable credit is the way to go here. I mean, look how great credit works for the government...and mortgage holders.

I don't think they will go under, but I also don't like corporate welfare.

short interest is over 20% of the float and 5 year bond guarantees cost over 40%, very indicative of the downward pressure and high likelihood of BK. you'd have much better odds taking your $1000 to the casino, even if you only play Roulette (worst game in the house).

[Carver]

Originally Posted by Buickman

the government should not bail them out. it is the direct fault of management, the Board for leaving Red Ink Rick in place, and the shareholders for keeping a useless Board. any guarantees or money given will only be wasted fruitlessly by a management team incapable of stopping the downward slide. much as I love GM and hate to say it, GM must be allowed to go under.

the writing is on the wall, negative $41 Billion in shareholder equity, and the same old goofy, cheeseball, money losing, distress merchandising SALES which are the reason we have gone downhill. I feel no sorrow or pity. they just wouldn't listen and now they are toast. too bad for those who will suffer because of Wagoner. as I said we don't need a Volt, we need a Revolt!

If they go bankrupt the shareholders, board members, and Wagoner will pay. But the government may still have a role in ensuring that post-bankruptcy GM is sufficiently capitalized. Then again, government action may not be necessary at all, but it should be something that our political leaders are willing to consider (although some of them seem to have no interest in the autobuilders at all).