Do you think GM will cease to exist? Their stock is at $1.09, is that a good buy?

R

ron

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Do you think GM will cease to exist? Their stock is at $1.09, is that a good buy? The Ford stock was trading close to a dollar in February and today it's at $5.49
 
You'd have to consider the financial position of both companies. On its 1st quarter earnings, Ford announced it would be back in profit by 2011. Meanwhile GM burnt through another $10b and is likely to keep crawling to the Whitehouse begging for taxpayer money. No price is worth paying for shares soon to be worth $0. They can't even afford to pay their union and bond holders who get first priority over shareholders in the likely event of bankruptcy.
 
I think GM will last a little while longer...but if they dont pair up with another car co. they may go under for good. I know they are shutting down plants..and getting rid of the buick...or oldsmobile.
I dont think it wise at this point to invest in GM unless you get some sort of divine sign from the heavens or something...I wouldnt...However I think chrysler will live on. This is just an honest opinion. hope it helps.
 
They wont cease to exist. They will file Chapter 11 bankruptcy and reorganize. Its not a good buy. When they file bankruptcy the stock will be canceled and worthless and they will issue new stock. Ford is in better shape financially and thats why their stock has risen.
 
I would think so, general motors is going down. Remember filing for bankrupcy is not the end. A new gm will come out of this, and this may be the best way of doing that. At the moment the company is inefficient due to bad operating cost and plenty bad decision making. In my view it should fail. It needs to sort out it's creditors and get a handle on it's operating cost. It can not operating in these conditions in its state. The truth is the automotive industry is not about to pick up any time soon. Gm has to fail. I would rather see the government assist a new cost efficient gm. As for buying their shares, well dont. Unless you can take the risk.
 
If you have some money you don't mind risking, buy some GM. If they avoid bankruptcy somehow and it's trading at 10 dollars in 2 years, you'll be looking pretty good. They'll likely be declaring so your odds aren't great.

Unfortunately, back in February I went and bought some GM stock. Should have went with Ford.
 
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