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GM: Yikes, 1953 Low

June 26, 2008 10:34 AM

factoryruins.jpgGM is getting crushed yet again. Rumors are swirling that there there will be a Chapter 13 on an auto company because of oil. That would not surprise me as U.S auto manufacturers make their margins on trucks and SUV’s. They sell cars, well a few, but they do not have any margin. If they cannot figure out how to make small cars profitably, they could be in big, big trouble.

Written by Tom@StockBlade.com · Filed Under Stock Comments 

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One Response to “GM: Yikes, 1953 Low”

  1. mikey on June 30th, 2008 7:46 am

    Here is my 2 cents:

    GM is profitable outside the U.S.A.
    GM has announced that they are building a gas/electric Silverado in Oshawa, Ontario starting in November despite admitting that the factory will be shutdown at end of 2009. Silverado is the Motor Trend Truck of the Year and very profitable vehicle for GM until oil started spiking > $100.

    Lotsa staff buyouts of highpriced $33/hr labor being replaced with $14/hr laborers across all GM divisions.

    If Congress regulates the speculators (i.e. raise margins on Oil futures contracts) then Oil plunges to $65 and GM shoots up to $25 (at least).

    In worse case scenario, they pull the same stunt that Chrysler did back in 1980 and get a government bailout to survive.

    GM stock plunges to………$5 ? Dividend to zippo. Screaming BUY !

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