GM Stock Rallies

[tgagneguam]

Originally Posted by wescoent

Just because you haven't heard about it, doesn't mean something isn't in the works. Even at $11, GM is still at a very high risk for a takeover.

Perhaps, wescoent, and you might be saying that because this company might be worth more in pieces than as a whole. But can you imagine the absolute nightmare you'd inherit for your $6.5 billion? It'd be frightening. The Union, I'm fairly certain, wouldn't play nice (and I don't think it should, in the event that GM were taken over). And convincing someone to buy the pieces for a sum to make a profit might be a bit of a challenge: 49% of GMAC for sale in this market? how much would Saab or Hummer really fetch on the open market? I don't know if any Icahn's would be willing to bite. Good luck if they do.

And I cannot imagine another auto company like Toyota or Honda buying in. First, that doesn't seem to be the strategy they've used to be so successful, and it's easier to bleed GM slowly than knock it out all at once. Ghosn's Nissan-Renault? A Chinese, Indian or Russian company? Still, a lot of headaches, even if it's had a such a low price.

[DW115]

Don't you need 51% for a hostile takeover

[Buickman]

last report over 100,000 shares shorted. combine this with the $325,000 premium on top of the normal $500,000 to insure 5 year $10 Million bond against default and you can see that the market anticipates further failure in the stock price and company performance. Red Ink Rick is not the answer. imagine being a salary retiree. since RIR took over as CEO you lost over 90% of the value in your GM stock, no longer have health care promised, and now receive no dividend. ain't he great?

how long will people continue to stand for this fool to run GM deeper into the ground? how anyone could possibly continue to support him is incredible. unless of course, this is all intentional. however most knowledgable folks I know say he's just really that incompetent.

suppose all that will happen though is more bad news followed by more cuts. when is enough enough?

[TriShield]

Originally Posted by Buickman

temporary. the Red Ink will soon be flowing again along with further debt downgrade. also, July's results will be a disaster. sticking with forecast of $5 by mid-August. remember the banks always support Wags when he cuts deep. it won't last.

dingdingdingdingdingdingdingding

Correct.

[2002 Caddy]

Originally Posted by T-Type

May I ask what you bought it at?

~$43.00

[2002 Caddy]

Originally Posted by K-1

That makes no sense. They didn't "find" $800mil in cash, they just aren't paying it out. If I don't buy groceries this weekend, that doesn't mean I just found (i.e. increased my worth) $100. It has nothing to do with the share price or the number of outstanding shares (i.e. the market cap).

No, it makes perfect sense.
The promise to pay a dividend is a future liability.

Eliminating a liability is the same as getting an asset.

Look at it this way... Lets say you have a $500 a month car loan... Lets say that GM calls you up and says "K-1, we are forgiving next months payment cause you are a loyal customer" Since you now have that $500 to spend on something else, you just got $500 richer.

Long term Buick is right this will have a further negative impact... According to my broker this is only a short term anomaly that you see anytime a firm issues (or stops issuing) a dividend

[cavaselis]

Has anybody thought what would happen to the stock if oil drops to say 100 or 80 a barrel which I for one believe it will, people will start buying trucks and suvs again and walla GM makes money stock goes back up. It just seems like everyone assumes oil is gonna be at 150 a barrel for ever I dont think our economy can withstand that.

Just my .02

[PAULSTS1]

Originally Posted by steinravnik

GM stock is rallying as of 11:21am, July 16, 2008. It is up over 13% for the day. Hopefully it can be sustained.

http://finance.yahoo.com/echarts?s=G...urce=undefined

Steinravnik:

This is nothing new, it's been done on stage since before the 1920's! It's called MAGIC, and all you need is a little smoke (promises) and mirrors (deception).

[doh]

Originally Posted by 2002 Caddy

~$43.00

Ouch!!! Sorry to hear of your loses, one of the few here that has "Put thier money where thier mouth is"

It is a "Bargan at sub $10 mark" with todays economy, I mean where else to put your $$$ that is somewhat safe today?

[slowinthefastlane]

Originally Posted by DW115

Don't you need 51% for a hostile takeover

Depends on the company, stock structure, and who's on the board. For instance, if the company has a large number of non-voting shares outstanding, the takeover threshold can be much lower, since you would just need to capture a large percentage of the voting shares to appoint yourself and others to the board of directors.

Due to low voting rates in many companies, you could even appoint yourself to the board with as little as 5-10% of the shares and a few large shareholders on your side (i.e. institutional buyers or founders).

[2002 Caddy]

Originally Posted by cavaselis

Has anybody thought what would happen to the stock if oil drops to say 100 or 80 a barrel which I for one believe it will, people will start buying trucks and suvs again and walla GM makes money stock goes back up. It just seems like everyone assumes oil is gonna be at 150 a barrel for ever I dont think our economy can withstand that.

Just my .02

Google "peak oil"

[Motownr]

Short Covering.

[steinravnik]

Originally Posted by Buickman

last report over 100,000 shares shorted. combine this with the $325,000 premium on top of the normal $500,000 to insure 5 year $10 Million bond against default and you can see that the market anticipates further failure in the stock price and company performance. Red Ink Rick is not the answer. imagine being a salary retiree. since RIR took over as CEO you lost over 90% of the value in your GM stock, no longer have health care promised, and now receive no dividend. ain't he great?

how long will people continue to stand for this fool to run GM deeper into the ground? how anyone could possibly continue to support him is incredible. unless of course, this is all intentional. however most knowledgable folks I know say he's just really that incompetent.

suppose all that will happen though is more bad news followed by more cuts. when is enough enough?

I think people like him because the products have improved so much under him. Look at the new Malibu versus the Corsica or Lumina of the 90's. How about the Enclave you drive versus the old Roadmonsters and Skylarks of the 90's. GM has the best products today than it's had in a long time.

Alas, I believe it is too little, too late. Wagoner has made a lot of costly mistakes as well, and GM is continually caught with the wrong products at the wrong times. I agree, it is time for a change. But can anyone really come in and right the ship? GM is a lot like the U.S. economy. There are no easy answers, and no easy solutions in sight.

[steinravnik]

Originally Posted by 2002 Caddy

~$43.00

Ouch. I'm sorry. Do you really want to lock in that kind of loss though? You might as well chance that it goes up. Even if GM goes under, you're only losing another $9. I would just hold on and see what happens.

[steinravnik]

Originally Posted by 2002 Caddy

No, it makes perfect sense.
The promise to pay a dividend is a future liability.

Eliminating a liability is the same as getting an asset.

Look at it this way... Lets say you have a $500 a month car loan... Lets say that GM calls you up and says "K-1, we are forgiving next months payment cause you are a loyal customer" Since you now have that $500 to spend on something else, you just got $500 richer.

Long term Buick is right this will have a further negative impact... According to my broker this is only a short term anomaly that you see anytime a firm issues (or stops issuing) a dividend

Makes perfect sense.