When it hit $4, it was worth $2.25 billion in market cap. You could have bought the historic GM company for only that much. Of course, they have debt of about $43 billion, which is bad, but you have cash of about $20.50 billion. All in all, you could buy it debt free for about $25 billion, which looks cheap if you can take over this giant and turn it around.
just remember many long term union contracts dont count as debt BUT ARE FUTURE DEBT Is Pension also under reported? You need to analyze better
GM has one foot in the grave. This is going to be one of THE pivotal bankruptcies in the history of the USA. Willy
Plus dont forget the massive losses in Rescap…(GMAC)
GM sucks. I personally would never touch it.
kcin Wrote: ------------------------------------------------------- > GM sucks. I personally would never touch it. Exactly it is a dead man walking…
What long-term union contracts? These workers will lose everything if nothing is done…they are no longer in that strong position they once were in. They would be happy to renegotiate…I would even give them stock ownership on top of salaries, so what? Instead of a total cost of $25 billion, make that $35 billion, or $40 billion. As long as you believe in GM cars and GM as a company (which I don’t to both counts), this is a good deal.
Just look where all of the bonds are trading…this company is insolvent. Even IF they have the liquidity to weather this storm, no one is going to refinance their bonds and their equity is worth sh!t.
Even in a moderate growth environment their survival was riding on the razors edge. Now, with commerce around the globe about to come to a screaching hault, they are DOA.
Except you guys are talking about different things. I think GM might well be worth something if you bought the whole thing.
JoeyDVivre Wrote: ------------------------------------------------------- > Except you guys are talking about different > things. I think GM might well be worth something > if you bought the whole thing. But who is willing to buy the whole GM with this market condition?!
strangedays, Abu Dhabi? Nah, no need for that. Many private equity funds could easily afford that.
done! i told you yesterday, my friends @ GMAC are scared as balls!
Dreary Wrote: ------------------------------------------------------- > strangedays, Abu Dhabi? Nah, no need for that. > Many private equity funds could easily afford > that. Ask Cerberus is they are happy about GMAC…
Will be bailed out by tax payers. We will be paying the high salaries of the inefficient union workers.