IS GM Going to Declare Bankruptcy? (May 8th)

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  • rm18
    SBR Posting Legend
    • 09-20-05
    • 22291

    #1
    IS GM Going to Declare Bankruptcy? (May 8th)
    I'm not really familiar with this, but +3500 on no seems interesting
  • isetcap
    SBR MVP
    • 12-16-05
    • 4006

    #2
    General Motors is likely to face ongoing pricing pressure, though its stock may benefit from improving sentiment in the first half of 2006, according to Goldman Sachs.

    "We believe that GM's market share will continue to face persistent long term downward pressure, and that market pricing pressure will intensify over time, eroding GM fundamentals further," Goldman analyst Robert Barry wrote in a recent report.

    The analyst reiterated an "in-line" rating on GM (nyse: GM - news - people ), reflecting expectations of share price support from improving investor sentiment.

    Barry believes GM will reach a settlement with Delphi to avoid a strike, and will successfully reach a stake sale with GMAC. He also expects GM's earnings comparisons in the first half to be favorable.

    "We think the combination of these three factors [will] help to allay fears that a GM bankruptcy filing is imminent," the analyst said.

    Barry raised the 2007 and 2008 earnings-per-share estimates on GM by 75 cents each to $3.50 and $3.75, respectively, based on an expected benefits cuts.
    Comment
    • isetcap
      SBR MVP
      • 12-16-05
      • 4006

      #3
      Investors are dictating that the 'No' appears to offer some genuine value.
      Nice find RM
      Comment
      • SBR_John
        SBR Posting Legend
        • 07-12-05
        • 16471

        #4
        Its a loser. The GM board just cut the dividend from .50 to .25 on the common shares. If they were gonna declare bk that dividend would be zero. Also, GM's bonds have held steady since the end of last year with the long maturities hovering in a tight range around 70. If this was a BK situatition those bonds would be 25ish. There may be a BK but it wont be in 06 or 07 imo.
        Comment
        • isetcap
          SBR MVP
          • 12-16-05
          • 4006

          #5
          Originally posted by SBR_John
          Its a loser. The GM board just cut the dividend from .50 to .25 on the common shares. If they were gonna declare bk that dividend would be zero. Also, GM's bonds have held steady since the end of last year with the long maturities hovering in a tight range around 70. If this was a BK situatition those bonds would be 25ish. There may be a BK but it wont be in 06 or 07 imo.
          That means the 'NO' is a winner, right?
          Comment
          • freebie
            SBR MVP
            • 08-10-05
            • 1174

            #6
            GM makes the Shittiest cars
            Comment
            • bigboydan
              SBR Aristocracy
              • 08-10-05
              • 55420

              #7
              Originally posted by isetcap
              That means the 'NO' is a winner, right?
              that what he's saying bud, but that doesn't mean they won't file.
              Comment
              • isetcap
                SBR MVP
                • 12-16-05
                • 4006

                #8
                Originally posted by freebie
                GM makes the Shittiest cars
                NO DOUBT ABOUT IT!!!

                Did you go to the car show when it was in DC, Freebie? I was there and Toyota's offering was definitely receiving the most attention. The hybrid Camry they are about to offer is going to be off the chart in terms of sales. GM didn't even bother showing, although they did have Cadillac there. It's hard to think of anything exciting that GM offers other than it's Corvette and Cadillac products. From what I understand they are attempting to pioneer the first hydrogen vehicles the US will see. This is really their only chance to carve out any forseeable marketshare in the next decade for them.
                Comment
                • rm18
                  SBR Posting Legend
                  • 09-20-05
                  • 22291

                  #9
                  General Motors avoid bankruptcy next 3 months? Mon 5/8 0:00AM (EST)
                  9162 No +3500
                  * Note: Will General Motors be able to avoid declaring bankruptcy in the next 90 days?


                  I guess I got it backwards, it seems like it is +3500 for them to declare bankruptcy, I think that has to have value though too, but maybe not
                  Comment
                  • isetcap
                    SBR MVP
                    • 12-16-05
                    • 4006

                    #10
                    I think the only bet that will pay out is the 'No'.
                    Comment
                    • freebie
                      SBR MVP
                      • 08-10-05
                      • 1174

                      #11
                      Originally posted by isetcap
                      NO DOUBT ABOUT IT!!!

                      Did you go to the car show when it was in DC, Freebie? I was there and Toyota's offering was definitely receiving the most attention. The hybrid Camry they are about to offer is going to be off the chart in terms of sales. GM didn't even bother showing, although they did have Cadillac there. It's hard to think of anything exciting that GM offers other than it's Corvette and Cadillac products. From what I understand they are attempting to pioneer the first hydrogen vehicles the US will see. This is really their only chance to carve out any forseeable marketshare in the next decade for them.
                      I saw you mentioning hop over the bridge and march to congress.
                      I'm assuming you're talking about the 14th street bridge or Rosslyn bridge. Anyway, you're in Va?
                      Comment
                      • datek23
                        SBR Wise Guy
                        • 01-08-06
                        • 667

                        #12
                        No Way. GM will make it through, The Big three always work in cetain cycles and they get hit in certain years however no matter how negative the media is they will all survive. In terms of assets GM is the biggest companie and in the world they just have way too much assets. Who knows Delpi was once part of GM and was doing good and went bankrupt.

                        True Story, I had a lady that work for Delpi office in some state tell me that I must buy Delpi it will rebound back. It was like .50 at the time and the next day they declared bankruptcy. what luck,lol

                        Kmart was in the pitts for years, they GM should get that Lambert guy to straight GM up. Reissued their shares at $10 and exploded to Couple hindred dollars, over 1000%. Did anyone know back in 1980 Kmart and Walmart was almost the same in marketcap and a lot of people were expecting Kmart to survivr and not Walmart. Walmart is now a unstoppable force in other countries making other retail companies in other countries to bankrupt soon after. Our great Media always fails to mention this, since they always try a negative USA spin.

                        Dont believe me, Remember the 12 alive miners. no all dead. Remember Gore winning the presidentcy? Remember Weapons of mass destruction? Our media is pathetic. Sadem Hussein now looks like the good guy. He warned the Presidents of the USA that there was a attack brewing but no one listened until now.

                        If GM, Chrysler, or Ford go down the economic of the USA might go into a recession or a depression and it will be a perfect times to play with shorts and puts in the stock market.

                        Our whole ecomonic is dwinding in certain areas but also gaining in several other areas, every time I call travelocity, I talk to some Indian that I call barely understand. Having a successful Indian and China is great for the USA the more successful they are the more products they buy from us. Even if the media always use the negative image of sending jobs to India and China, they never tell the positive spin, The jobs that were created in Mexico, India, and China have also cause an increases in USA jobs, since these 3 countries buy trillions or dollars from our country. More to the certain people let on.
                        Comment
                        • isetcap
                          SBR MVP
                          • 12-16-05
                          • 4006

                          #13
                          Originally posted by freebie
                          I saw you mentioning hop over the bridge and march to congress.
                          I'm assuming you're talking about the 14th street bridge or Rosslyn bridge. Anyway, you're in Va?
                          Yes, I'm in Alexandria right by 395. The hop over the 14th St bridge takes about 5 minutes for me by car. The hop over the Key Bridge (Rosslyn) takes about 10.
                          Comment
                          • RickySteve
                            Restricted User
                            • 01-31-06
                            • 3415

                            #14
                            Originally posted by datek23
                            every time I call travelocity, I talk to some Indian that I call barely understand.
                            I can see how this would be troubling to someone with such obvious command of the English language.
                            Comment
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