Yes, some things never change. Just a correction: C reverse split 10 for 1, so the stock is actually $2.70 cents pre-split, a drop of OVER 90% of its value from the 52 week high. The airline stocks are no different, they just file bankruptcy and then relist the stock later, yet STILL can't hold their gains. My guess is if GM keeps tanking, it may end up doing a reverse split just like C. The bottom line: "Fool me once, shame on you, fool me twice, shame on me."
Everyone has a different timeline and different motivation, but I think some pretty smart people are buying into the stock here. A PE of 5 is compelling though I haven't looked at it much.
But is it just another moral hazard bet? i.e. perpetual bailouts. And it should be made clear that there are "direct" bailouts and "indirect" bailouts (such as ZIRP, suspension of MTM accounting and the myriad of accounting gimmicks allowable).
Perhaps. I don't know. But what the bull thesis is (and I don't know a lot about the company), is that the bankruptcy helped shed legacy healthcare costs. These costs amounted to like $1500/car. This makes the cars more competitive. Also their european and asian divisions are quite strong and their US cars are improving. This is from the brief stuff I had read around their IPO, so it's dated and maybe not relevant. Einhorn is buying GM. GM GMCR spread trade. I guess he doesn't like CR
GM has been losing money in Europe for the last 10 years.In Q3 GM posted a pretax loss of 292 million in Eurpoe.
Yeah. You are right. GME sucks. I must have been reading some propoganda. However in 2010, their global automotive business did generate almost 6Bn in pre-tax income.