Will GM or Ford stock ever go back up?

  • Thread starter Thread starter Nirvana
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Nirvana

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I was shocked today to see both companies with shares under 2 dollars. With such dangerously low numbers, how are these companies suppose to stay afloat? All the bailout money is doing is stalling. Will these companies ever make a recovery?
 
I do not see a recovery in any meaningful period of time. The heavy debt and legacy costs are enough to bankrupt most companies. The common stockholders risk a bankruptcy and loss of their equity. Bloomberg reports that Toyota and Honda are facing difficult days. Of course, they are making the changes to weather the weak market conditions. The stock of GM or F is not a wise place to put your money.
 
How come you didn't mention Chrysler? The bailout money is keeping the auto workers, and more importantly from the Democrats point of view, the UAW, afloat.
Sales of domestic automobiles plummeted in 2008. They tanked before the Fall crisis.They tanked before there was any word of bailouts and possible bankruptcies.They tanked before anyone imagined that the dealer who sold you a domestic car could go out of business long before your warrantee expired. What hope could there be now that all is revealed?
Assuming that its engineers are not necessarily as dumb as its executives, the American auto industry might well produce the next wonderwagon; but what on earth are they going to do with the acres of unwanted vehicles - each of which has a large unsatisfied price on its head?
 
<<<Will GM or Ford stock ever go back up?>>>

<<<Will these companies ever make a recovery?>>>

No one has a time machine to tell you with any certainty what will happen in the future. What I think is clear is that most people now think the companies will fail, but some people still think the stock is worth buying because if they do turn around successfully the potential profits are a lot larger than the potential losses if the companies fail.

<<<I was shocked today to see both companies with shares under 2 dollars. With such dangerously low numbers, how are these companies suppose to stay afloat?>>>

They will not stay afloat without some kind of assistance. That means it is in every stakeholder's best interest to make some sacrifice to help them. It remains to be seen if they will sacrifice enough.
 
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