Detroit Business Daily

GM ????????????????????

What is the likelyness that Gm is bailedout before the go bankrupts and if they are bail out how lo will their shares be

Public Comments

1. GM is in the worst shape it's been in for about 65 years. These continuous government bailouts are shameful. We are rewarding corporations who've made crappy business decisions and are all paying for it - and what do we get out of it?!
2. Shares could hit $1.50/share, but they're likely to be bailed out. A Democratic prez won't let GM fail, even with their HUGE problems.
3. It is highly unlikely GM will bounce back, we are talking about months here. You can bail them out but they are losing 2 billion a month so your actually only buying time. Who knows how long the financial crisis and oil prices will last, so why waste tax payers money on nothing really, they dont even make good cars.
4. Shareholders will likely get zero. Senior bonds were trading at 30 cents last week when stock was 5. It is not worth owning a stock that makes you lose sleep. I think company will still be around. Chrystler was bailed out in the 70's and is still making vehicles. GM will be around but I sure as hell would not speculate on their shares. The company has been losing market share for several years to Honda and Toyota and makers of smaller/better cars. The current recession just sped up things a bit.
5. The government probably will do it. But it will be a while before they are a strong company again.
6. they already have a negative equity value, and sales are falling off while labor costs are through the roof (gotta love the strategy of the UAW - bilk the company for as much as you can before it goes belly up!). why would you want to own such a terrible company?
7. Even if the big three are bailed, it would probably be equivalent to buying them around 1-2 years of time. Have you seen the recent 3Q results that stated GM lost more money than its stock is worth?
8. I sure hope they get bailed out - and I think they will. If they don't we're looking at Lehman Bros #2 and the economy continues to get flushed down the toilet. It's important to consider not just how huge a company GM is, but also the huge number of americans they employee! A bailout of GM does not save the economy and turn everything around - but it would be a step in the right direction.