gm alliance - i don't get it...

Discussion in 'Wall St. News' started by niceneasy, Jul 3, 2006.

  1. nassau


    we will never really know what is going on.
    but what we do know is this type of news gives us the opportunity to trade as it creates volume and volitiltiy.

    could be good opportunity to write some july / august staggered calls

  2. Pabst


    How do you know if Kirk Kerkorian has losses? GM pays a great dividend that he's been collecting. More importantly you're pointing out old news. It's in the market.

    Bottom line: They're the biggest auto maker in the biggest market. A persistently weak dollar hurts foreign competitors. Higher rates may dampen auto sales but HELPS GM's pension liability. Lastly many of GM's new models are finding buyers at various price points.

    When enough people think a stock's going to zero, it'll be the last stock that goes to zero. Meaning: there's a boatload of shorts getting KILLED in GM.
  3. MRWSM


    You got them all right except #1 =terrible product quality. I have proved on these boards many times using non biased means of testing long term durability of GM vehicles and each time shows that GM is unsurpassed in long term durability. Yet people who know nothing keep hammering on the same statement of quality issues.

    Myself having my GM vehicles go 300,000 miles before selling them, I can't see how you can expect anything better. I know a fleet owner that has GMC vans regularly go 500,000 miles to a million miles before renewing the fleet. His drivers put 100,000 miles a year on average for each van.
  4. =============
    a]Dont overweight fundamentals;
    unless you like mental/financial pain

    b]Dont fight a 50 dma , like ''a'' hinted

    c] See what i mean????;
    also huge gap ups with huge # of sellers arent bring it down , see what i mean???? Ignore huge profits made by shorts earlier;
    at least for a while as Pabst hinted:cool:
  5. the quality isn't as bad as it used to be.....

    (i own a grand prix that was built in canada. great ride.)
  6. Pabst


    If you look at user opinions on autos.msn it's downright scary how negative some folks experiences with European makers have been. Except for BMW I'd be wary of buying any Euro-car. MBZ, Audi, VW and even Volvo report high incidents of "quality issues" that are far worse than a rattling dashboard. I can live with a loose door handle. I can't live with a transmission or engine blowing at 40k miles. Not to mention the cost of normal maintenance. As word get's out how imposible it is to afford servicing an older Euro-car, resale prices will plunge. (they already are) People will shy away from spending $35k on that troublesome A4 when they can't get more than 16k for it three years down the line.

  7. give this man a cookie.
  8. maxpi


    GM long term quality is the best. My daily ride, Camaro, has 345,000 miles on it, no rattles, squeaks, etc. I had a Toyota that at 100,000 miles was the biggest piece of shit imaginable, nearly unfixable, mechanics laughed when I talked about rebuilding things. My wife has a Ford with about 150,000 miles on it, the interior is falling apart, I mean the whole interior, and the front end needs bushings as well, otherwise pretty good car.

    This JD Powers quality thing that gets quoted so much is about defects first 30 days. The people at consumer reports that always rate Japanese cars so highly, they are good at reading their telephone bill and understanding every last thing on there but they don't know doodly squat about cars. They say my Camaro is not nimble enough to get around in a parking lot!!

    GM has had many triumphs over the years and they never talk about it in their advertisements. They have the stupidest public relations and advertising department I can imagine. They could do infomercials pointing out the handling capabilities of their Corvettes and Camaros/Firebirds over the competition, they could point out all the technical innovations they have done over the years, they could talk about long term quality and maintenance costs, they could do a lot, but instead they do those stupid saturation advertising repetitive motion obsessive compulsive ads that are such a turn off.
  9. im sorry - im not buying ANY of this. the company is de facto bankrupt. burning about a half to a billion a month in cash . 300 odd billion in debt. on the hook for 10 or 30 billion for delphi which is a huge mess.

    you can watch the market share go down literally by the hour.

    the only product they have making any money are the suvs and NOBODY is buying those. thats only gonna get worse as oil goes up...they have a broad portfolio of cars that nobody wants that they have to continue producing to keep the union happy.

    its bonds are junk. GM owes its bondholders about $113 billion, of which almost $15 billion falls due this year with an additional $27 billion scheduled for repayment next year. they only have 20 or so billion in the bank last time i checked a few months ago. what am i missing here?

    they lose money every time they sell a car.

    as for quality - a 10 year old toyota has less service issues than a brand new gm. more product recalls than any other manufacturer. save yugo lol. visit a gm factory parking lot for the real writing on the wall.

    why ally with gm? could pick the bones over for a few cents on the dollar in a few years.

    the employee buyouts are equivalent to rearranging the deck chairs on the titanic pre plunge.

    the ceo is a bum as far as i am concerned. if they had any balls - they'd dividend out all the cash save for a few months operating expenses and then start negotiating with the unions. cut all the fat out of the model, kill all and any brands that arent profitable. but they wont - they will bleed to death slowly and then rely on taxpayers to bail them out. then they will do the same thing over again. just like the airlines. fuck the equity holders.fuck the bond holders. fuck the taxpayers. pay the management.

    i dont get it. im not short or long so have no vested interests either way but who the hell would be buying htis p.o.s???
    #10     Jul 3, 2006