Market valuations for GM, Ford skid as fears accelerate

[Oracle of Delphi]

Market valuations for GM, Ford skid as fears accelerate

Fri, July 11, 2008

Shares of General Motors Corp. slid to another record low yesterday, as speculation swirled about the financial viability of U.S.-based automakers and a possible bankruptcy filing at GM.

GM shares fell 64 cents, or 6.2 per cent, to close at $9.69, after tumbling to $9.32 earlier, passing Monday's five-decade low by 60 cents.

Yesterday's low marked the Detroit-based automaker's lowest share price since July 2, 1954, when its stock dropped to $9.15, according to the Center for Research in Security Prices in Chicago. The price is adjusted for splits and other changes.

Carl-Peter Forster, president of GM Europe, called rumours that the automaker is near bankruptcy "baseless."

But Forster acknowledged the automaker must restructure its U.S.-businesses in the next 18 months.

GM chief executive Rick Wagoner also dismissed the speculation, saying at a lunch meeting of Dallas business leaders that comments in the past week about a potential bankruptcy are "not at all constructive or accurate."

Forster also said that while GM is discussing the sale of its gas-guzzling Hummer brand, reports about other brands being up for sale are pure speculation.

Mark LaNeve, GM's vice president of North American sales, also denied reports that the automaker is looking into the possible sale of other brands in a memo to GM dealers this week.

GM's shares have taken a beating this year, as soaring gas prices drove U.S. consumers away from its sport utility vehicles and pickup trucks in favour of more fuel efficient cars and crossovers.

Since the beginning of the year, GM shares have fallen nearly 60 per cent. In the last 12 months, GM shares have lost about 72 per cent.

Shares of Ford Motor Co. also tumbled yesterday, falling 37 cents, or 7.5 per cent, to close at $4.58, after dropping as low as $4.47 earlier. The Dearborn, Mich.-based company's shares dropped to a multi-decade low of $4.30 on July 3.

Citi's Itay Michaeli said that both GM and Ford, along with privately held Chrysler LLC, will need significant cash as they face one of the most severe downturns in their industry's history.

Michaeli said that while a bankruptcy filing at one of the Detroit-based automakers could happen, it's more likely they would try to work out their financial problems outside of court.

Link: http://lfpress.ca/newsstand/Business/2008/...126896-sun.html

Edited July 12, 2008 by Pontiac Custom-S

[Newbiewar]

I'm not sure... I want to keep buying, but my feet are getting cold...

i guess we'll keep holding and keep buying, i really cant forsee this staying down this low, but if the entire banking industry collapses... perhaps GMAC is the reason for fears...

Rescap being the second largest morgage lender in the united states, could tumble just as countrywide did

I'm not sure if this is good or bad... but apparently this was news from the 9th? just a few days ago

"NEW YORK (Reuters) - Residential Capital LLC, the mortgage lending arm of GMAC LLC, said on Wednesday a GMAC affiliate has agreed to acquire its resort finance business.

ResCap said it received an initial $250 million deposit from GMAC Commercial Finance, representing the estimated net proceeds for the business, which finances vacation resorts. It said the fair value of the business will be determined by a third party. The transaction is expected to close on July 30.

The money-losing lender has been struggling to pay its debts, and last month GMAC arranged a $60 billion refinancing for the company.

Private equity firm Cerberus Capital Management LP CBS.UL in 2006 led a group that bought 51 percent of GMAC from General Motors Corp (GM.N: Quote, Profile, Research). The automaker owns the remaining 49 percent"

[regfootball]

wall street smells blood. they know any sort of hysteria they can create to actually make this happen will net all themselves millions and billions. breaking it down and building it back up is a significant business opportunity for those jerkwads.

[longtooth]

wall street smells blood. they know any sort of hysteria they can create to actually make this happen will net all themselves millions and billions. breaking it down and building it back up is a significant business opportunity for those jerkwads.

Ideas, abstract concepts. People who have never had to labor, having no idea what manufacturing entails sitting in judgement of lowly labor. America the idea Nation. Apparently the idea of a collapsing Stock Market, runaway inflation in connection with any commodity you'd care to name, bank failures, housing foreclosures are all a part of some inter-connected master plan which will put us on the road to prosperity. Even though it would appear we're headed for perdition. Ask the IndyMac bank customers. The "Full Faith and Credit of the United States Government". Very catchy.

Edited July 12, 2008 by longtooth

[regfootball]

Ideas, abstract concepts. People who have never had to labor, having no idea what manufacturing entails sitting in judgement of lowly labor. America the idea Nation. Apparently the idea of a collapsing Stock Market, runaway inflation in connection with any commodity you'd care to name, bank failures, housing foreclosures are all a part of some inter-connected master plan which will put us on the road to prosperity. Even though it would appear we're headed for perdition. Ask the IndyMac bank customers. The "Full Faith and Credit of the United States Government". Very catchy.

yup

[longtooth]

yup

Reg', I'll admit it fits in with my notion that there's a move afoot to "One World-ism". Aided and abetted by those charged with seeing after the integrity of our sovereign State. Witness the seemingly unregulated nature and tenor of Wall Street. It a Casino for the wealthy, who siphon value more adeptly than any band of 'Goodfellas' could ever have dreamt. That a few regular 'mugs' (us) are tangentially caught up in the intrigue is coincidence. Likewise the Petroleum bubble/scam/speculation-driven lottery. I personally see no reason for such a volatile valuation of that commodity save for the saber-rattling comments by obtuse administration members. My views seem to be the minority opinion. Hmmm. I wonder what 'Joe Average' would say were some pointed questions asked of him?

[Chevy Nick]

This financial disaster will not bode well for the legacy of george w bush, people will want someone to be accountable, people will want someone to blame.

[Satty]

Has anything over the last 7 1/2 years bode well for W?

[longtooth]

Has anything over the last 7 1/2 years bode well for W?

A link to the IMDb web-site for the 1994 film "The Madness of King George". Just for sh*ts n' giggles.

The title really says it all. No real need to link to the site unless you're a fan of practical irony.

http://www.imdb.com/title/tt0110428/

[CARBIZ]

Reg', I'll admit it fits in with my notion that there's a move afoot to "One World-ism". Aided and abetted by those charged with seeing after the integrity of our sovereign State. Witness the seemingly unregulated nature and tenor of Wall Street. It a Casino for the wealthy, who siphon value more adeptly than any band of 'Goodfellas' could ever have dreamt. That a few regular 'mugs' (us) are tangentially caught up in the intrigue is coincidence. Likewise the Petroleum bubble/scam/speculation-driven lottery. I personally see no reason for such a volatile valuation of that commodity save for the saber-rattling comments by obtuse administration members. My views seem to be the minority opinion. Hmmm. I wonder what 'Joe Average' would say were some pointed questions asked of him?

You're not in the minority, sir. Most 'Joe Averages' either don't know what questions to ask, or don't give a damn, "pass the remote, please."

I've been emailing and writing every damned councilor in the city of Toronto lately because our band of shiftless, socialist half-wits on Council are merrily rubber stamping the Mayor's proposal to tear down the only highway in or out of the downtown core, just because it blocks his view from the wall of condos that are being built. Most people I talk to are 100% against the idea, but most shrug it off and say there is nothing that can be done.

It is that very lack of imagination or curiosity for the truth that is breaking the spine of both our countries. I guess 40 years of dumbing down public education has paid off: the rapists in charge can do whatever they want and the muelling Masses just swallow it all.

Trust me, there are many days when I survey the mess and truly wish Iran or China would nuke us so we can just start over............ ah, well, another rainy Saturday.

[longtooth]

You're not in the minority, sir. Most 'Joe Averages' either don't know what questions to ask, or don't give a damn, "pass the remote, please."

I've been emailing and writing every damned councilor in the city of Toronto lately because our band of shiftless, socialist half-wits on Council are merrily rubber stamping the Mayor's proposal to tear down the only highway in or out of the downtown core, just because it blocks his view from the wall of condos that are being built. Most people I talk to are 100% against the idea, but most shrug it off and say there is nothing that can be done.

It is that very lack of imagination or curiosity for the truth that is breaking the spine of both our countries. I guess 40 years of dumbing down public education has paid off: the rapists in charge can do whatever they want and the muelling Masses just swallow it all.

Trust me, there are many days when I survey the mess and truly wish Iran or China would nuke us so we can just start over............ ah, well, another rainy Saturday.

'Biz, I hear you. The "dumbing down" is nearly in full effect. Couple that to apathy and the formula is nearly ready for wide release. We've either become too complacent or content. I've written and e-mailed my political representatives. I sure that they are aware of the situation as it applies to both of our countries.

To amplify the term "dumbing-down". It isn't merely slack-jawed stupid as it could imply. It could mean partially educated as to the mechanics of some thing, or concept as I like to rail about, but it is also the inexperience and the lack of rounded development of those who've passed through our educational institutions. They come out of college so narrowly focused so as to be unable to see how current events are situated in the context of history. The saying goes: Those who do not learn from history are doomed to repeat it. I feel that we are about to repeat some dreadful mistake. Perhaps old "Mad Money Cramer" can booyah our @sses out of the frying pan, and away from the fire. I don't put any faith in the 'princes' of this world. Not even my buddy MM Cramer...

[daves87rs]

'Biz, I hear you. The "dumbing down" is nearly in full effect. Couple that to apathy and the formula is nearly ready for wide release. We've either become too complacent or content. I've written and e-mailed my political representatives. I sure that they are aware of the situation as it applies to both of our countries.

To amplify the term "dumbing-down". It isn't merely slack-jawed stupid as it could imply. It could mean partially educated as to the mechanics of some thing, or concept as I like to rail about, but it is also the inexperience and the lack of rounded development of those who've passed through our educational institutions. They come out of college so narrowly focused so as to be unable to see how current events are situated in the context of history. The saying goes: Those who do not learn from history are doomed to repeat it. I feel that we are about to repeat some dreadful mistake. Perhaps old "Mad Money Cramer" can booyah our @sses out of the frying pan, and away from the fire. I don't put any faith in the 'princes' of this world. Not even my buddy MM Cramer...

So very true....

[FUTURE_OF_GM]

wall street smells blood. they know any sort of hysteria they can create to actually make this happen will net all themselves millions and billions. breaking it down and building it back up is a significant business opportunity for those jerkwads.

Bingo!

"The Street" will push Detroit as hard as they can.

[FUTURE_OF_GM]

Trust me, there are many days when I survey the mess and truly wish Iran or China would nuke us so we can just start over............ ah, well, another rainy Saturday.

Careful, careful my friend You're getting dangerously close to my state of mind.

"Blackened is the end. Winter it will send.

Blowing all you see. Into obscurity.

Death of mother earth. Never a rebirth.

Evolutions end. Never will it mend.

NEVER!" --- MetallicA

[Blake Noble]

Careful, careful my friend You're getting dangerously close to my state of mind.

"Blackened is the end. Winter it will send.

Blowing all you see. Into obscurity.

Death of mother earth. Never a rebirth.

Evolutions end. Never will it mend.

NEVER!" --- MetallicA

Great song.