What is a good method for the fundamental analysis estimate on the bankruptcy ETA of GM Negative equity, negative earnings How long before they burn out like a dot com or get a bailout
stock is probably not worth anything, eventually chapter 11 is their only answer, just wait too much debt
I am studying to learn their balance sheet Anyone know how to calculate this? Last year they got kicked in the teeth by a $39B loss mostly due to a 'nonrecurring' deferred tax charge Presently they have $25B cash How can I know what skeletons GM have in the closet for more 'nonrecurring' charges to appear on their book Or is this being overly skeptical
watching fast money last night and they have that game for which stock is the best stock for 2008, well last night it was GM vs TM, it came out to a tie with Dylan being the 5th vote, remember this is to see which stock is the best performing stock over the next year, well Dylan broke the tie by chosing GM as the stock..... hmmmm GM is not a buy now...
The only thing that will save GM is a plan similar to Reagan's. GM requires some sort of gov't intervention to stay afloat. The US Auto Industry's focus has been on financing for years and not quality. How much expensive luxurious bullshit can I fit in this frame and how low can I make the monthly payment? -7-year auto loans? Are you kidding? -Financing available for spinning rims (Rent-n-Roll) -A $30,000 Saturn Sportscar? Get real. It's a sobering situation.
I believe its 'Deferred Long Term Asset Charges'. this was tax 'assets' that they had on the balance sheet due earnings loss that they were planning to use to offset future income taxes, when their accountants realized there wasnt going to exist any future income anytime soon they had to writedown those 'assets'. as of dec 07 they have $2.1B of new tax assets
I kind of think the Gov will bail GM and F out before letting them go bankrupt. Allowing them to go bankrupt would be unpatriotic, afterall.
I heard they are going as high as 8 YEARS... $30,000 Saturn Sportscar, haha I have probably seen 2 of those on the road since they came out, they are not selling, Hyandai is also releasing a new sports car, I believe the price is in the upper 20's lower 30's, I dont see how they can grab a market with those type of prices.
Insanity.. pure insanity.. The sales reps push low monthly payments just like we did in the mortgage industry with the 1% LIBOR ARMS. It's bullsh*t.