GM Shares Plunge To 75-Year Low....1933 Price

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    Mar 07, 2009 12:28 AM GMT
    http://www.cbsnews.com/stories/2009/03/06/business/main4848447.shtml

    Opportunity? Or the beginning of the end?

    "General Motors Corp. shares on Friday fell to their lowest point in more than 75 years, as investors fretted that despite government help the ailing automaker may still be forced to file for bankruptcy protection.

    GM shares hit a low of $1.27 in late morning trading Friday, before rebounding. At the closing bell, GM shares dropped 41 cents, or 22 percent, to $1.45.

    The low point matched a record set on May 4, 1933, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

    GM released a statement Friday saying that it had not changed it position on a possible bankruptcy protection filing, and that an out of court restructuring remains its best option."
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    Mar 07, 2009 2:52 AM GMT
    [quote]I think GM and Chrysler are probably done for.[/quote]

    Maybe it's not such a bad thing. Don't some mighty old oaks have to fall every now and then to allow sunlight through the forest canopy so new saplings can grow? Isn't that the "free" enterprise way? Maybe it will hasten a shift to the new green economy.

    There's gonna be pain though.
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    Mar 07, 2009 3:22 AM GMT
    Only in the weird make believe lands of Detroit and Washington, D.C. is there any doubt that in the good scenario GM and Chrysler need to be restructured via bankruptcy. In the bad scenario they will be liquidated. Either way, their current shareholders will be wiped out.

    There are just too many archaic contractual arrangements and too much excess capacity for either company to recover without bankruptcy protection. Arrangements with labor unions regarding staffing levels, work rules, wages and benefits (for both current workers and for retirees) must be redrawn. As do arrangements with suppliers, bondholders and dealer networks.

    Drip feeding cash from Washington in these companies throws good money after bad and merely denies the eventual reckoning.

    No doubt bankruptcy will lead to a further horrible surge in unemployment at the car companies, at their suppliers, and in the cities and towns were those companies are located. Ford and the profitable car makers in the US (i.e. Japanese, Korean and German transplants) will be temporarily disrupted as supply arrangements are re-drawn. But, one way or the other, these adjustments will have to be made.

    It would be much wiser to force both GM and Chrysler into bankruptcy and to spend taxpayer money on debtor-in-possession finance, warranty arrangements for any buyers of cars while the companies are being restructured and loans and grants to the states and cities worst affected by the downsizing to help unemployed workers transition to new jobs or to long term unemployment.

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    Mar 07, 2009 7:11 AM GMT
    Its the end. I mean they are not making cars that the American consumer wants. Who here actually has a Chevy car, not counting trucks,... I bet not that much.
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    Mar 07, 2009 7:20 AM GMT
    Shameful and stupid too. Years ago when that 100 miles a gal carburetor came around...... they should have put it to good use. Especially, in the 70's oil crises. Now all I have to say is...GOOD BYE!!

    A sign of the times:

    An ATM withdrawal costs more than 1 share of C.

    A gallon of gas more than a GM share.

    A pack of lightbulbs more than a GE share.
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    Mar 07, 2009 7:54 AM GMT
    Coming from a GM family I recently did my part to help the company out and ordered a new 09 colorado with every possible option available.I'm not giving up on them.
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    Mar 07, 2009 8:14 AM GMT
    discojim saidComing from a GM family I recently did my part to help the company out and ordered a new 09 colorado with every possible option available.I'm not giving up on them.

    Here here! im getting my moms 07 tahoe and shes getting a new one! Lets save one of the things that made this country great! and oh fuck chrysler, im in the take theirs not mine mood tonight
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    Mar 07, 2009 8:19 AM GMT
    discojim saidComing from a GM family I recently did my part to help the company out and ordered a new 09 colorado with every possible option available.I'm not giving up on them.


    Good for you. If people are willing to pay more for GM because they think they are better cars then the company will survive. Unfortunately a big reason the company is in trouble is because people aren't doing this. Buy American if American is better, but don't buy just because it's American. In the end you just encourage American mediocrity, and stifle international ingenuity. If GM can't produce a quality affordable car, perhaps they should cease to exist.
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    Mar 07, 2009 1:44 PM GMT
    flieslikeabeagle saidOnly in the weird make believe lands of Detroit and Washington, D.C. is there any doubt that in the good scenario GM and Chrysler need to be restructured via bankruptcy. In the bad scenario they will be liquidated. Either way, their current shareholders will be wiped out.

    There are just too many archaic contractual arrangements and too much excess capacity for either company to recover without bankruptcy protection. Arrangements with labor unions regarding staffing levels, work rules, wages and benefits (for both current workers and for retirees) must be redrawn. As do arrangements with suppliers, bondholders and dealer networks.




    I'm interested if bankruptcy would provide restructuring of union contracts and overly lucrative exec pay deals, etc etc.

    If they don't change something about the equation, the bailout IS just throwing good money after bad.

    It's a shame to see the company going down, especially now when it's managing to produce some winners:

    Cadillac CTS
    Chevy Malibu
    Corvette
    Chevy Avalanche
    Silverado / Sierra pickups
    Traverse / Outlook / Acadia clones

    If there's a chance for a turnaround, now might be the time to buy stock.
  • coolarmydude

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    Mar 07, 2009 2:59 PM GMT
    They're going bankrupt. If you must invest in GM, wait until after their bankruptcy, if they're still around.
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    Mar 07, 2009 4:17 PM GMT
    There are a lot of car makers around the world and they all seem to produce vehicles better and cheaper than Detroit.

    GM's role as a supplier of military vehicles is a concern, as is government's role in helping bring down one of the greatest US companies.

    Since Chrysler under Lee Ioacoca, it's tough to think of a government "loan"/bailout that didn't leave the recipient worse off than it was. That doesn't necessarily concern vote-buyers in Washington.