No GM left to short on IB :)

Discussion in 'Stocks' started by scriabinop23, Oct 24, 2006.

  1. barring having a more detailed discussion of the technicals of the mortgage industry (which i'm not precisely aware of), I always thought lenders merely marked up 1, 5, 10, and 30 yr treasury instruments -- they of course don't pocket all of the interest. there is a cost of capital to the lenders. i always thought of lenders as 'buying a bond' from the borrower, while fixing cost basis and duration with treasury related or derived instruments, pocketing the difference between the treasury related hedge and the 'bond rate' (mortgage rate).

    regardless, look at this:

    http://www.thestreet.com/_googlen/n...092.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

    an example of a decent run lender that failed to meet wall street expectations just yesterday. my point is that the mortgage industry will continue to falter, so owning a mortgage business at this point in the real estate game isn't exactly an ace in the hole (understated).

    so while the housing market is slowing down and less loans are originated and refinanced, this component of GM will likely be hurting too (hurting = performing under expectations). I'm not implying as a loan originator vulnerability to loan default is the issue here.
     
    #11     Oct 24, 2006
  2. I thought they sold their GMAC arm - or at least most of it?
     
    #12     Oct 24, 2006
  3. tef8

    tef8

    http://www.gm.com/company/corp_info/profiles/

    Global company with a few different businesses - GMAC seems to still be under their roof according to their website.
    (if it's not then their site would be out of date).

    Interesting link about the mortgage business...

    I guess my main point is that GM is not just an auto company.

    I have no positions in the stock - I used to work for them years ago and was amazed by how big it really is.
     
    #13     Oct 24, 2006
  4. http://www.usatoday.com/money/autos/2006-03-23-gmac-commercial_x.htm

    they sold part of it off earlier in the year.
     
    #14     Oct 24, 2006
  5. tef8

    tef8

    Yes, part of it.
     
    #15     Oct 24, 2006
  6. Drew07

    Drew07

  7. tef8

    tef8

    #17     Oct 24, 2006
  8. Drew07

    Drew07

    I use it as is....I really don't know what more is included in a subscription. I just use it to find the number of short shares.
     
    #18     Oct 24, 2006
  9. whats curious to me is the dating and accuracy of the info. On yahoo.com they show short interest for gm 'effective' Sep 12th with similar #s to the prior.

    Wonder if the yahoo date is merely incorrect.
     
    #19     Oct 24, 2006
  10. i don't appreciate your tone.
     
    #20     Oct 25, 2006