GM: Huge loss leaves it almost out of cash

Sunt din Brasov si situatia mi se pare asemanatoare cu cea de la Tractorul sau alti colosi in care s-au pompat bani cu nemiluita desi nu mai erau de mult rentabili si tehnologia lor era expirata de mult.

Mai bine ar pompa banii aia in TeslaMotors sau orice alta companie de acest gen.

Sunt din Brasov si situatia mi se pare asemanatoare cu cea de la Tractorul sau alti colosi in care s-au pompat bani cu nemiluita desi nu mai erau de mult rentabili si tehnologia lor era expirata de mult.

Nov. 10 (Bloomberg) -- General Motors Corp. plummeted as much as 31 percent and moved toward its lowest level in 62 years after a Deutsche Bank AG analyst downgraded the shares, saying they may be worthless in a year.

``Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy-like,'' Deutsche Bank's Rod Lache wrote today in a note. The New York analyst recommended selling the shares and cut his 12-month price target to zero. He previously advised holding the stock.

The decline shows mounting pessimism that a turnaround will succeed at the largest U.S. automaker amid the credit crisis and the worst sales market in at least 15 years. GM is petitioning the U.S. government for aid after saying last week it may not have enough cash to operate this year. A bankruptcy typically wipes out the value of a company's shares.

Barclays Capital and Buckingham Research Group cut their price targets for GM to $1.

GM, based in Detroit, lost 99 cents, or 23 percent, to $3.37 at 2:45 p.m. in New York Stock Exchange composite trading. It fell as low as $3.02 in intraday trading, which would be the lowest close since Nov. 22, 1946, according to Global Financial Data in Los Angeles. Ford Motor Co. dropped 9 cents to $1.93.

``We believe any government assistance would likely significantly dilute GM's equity,'' said Chicago-based Barclays analyst Brian Johnson, who reduced GM to ``underweight'' from ``equal weight'' and lowered his price target from $4.

Government Support

GM, Ford and Chrysler LLC, owned by Cerberus Capital Management LP, appeared over the weekend to be moving closer to gaining that federal aid. U.S. House Speaker Nancy Pelosi of California and Senate Majority Leader Harry Reid of Nevada wrote Treasury Secretary Henry Paulson to urge that bank-bailout funds be opened up for loans to automakers.

Rahm Emanuel, chief of staff to President-elect Barack Obama, said the U.S. auto industry ``essential'' to the economy.

While Emanuel stopped short of endorsing such a plan, the White House today signaled its opposition, saying aid to the industry wasn't discussed during the debate on the banking bailout. Congress may take up automaker assistance when it returns next week.

``GM's only salvation is a capital injection from the government,'' said Buckingham analyst Joseph Amaturo in a note today, cutting the automaker's share-price target to $1 from $3. ``The company liquidity position is dwindling rapidly given the automotive cash burn,'' said the New York-based analyst, who rates GM shares ``underperform.''

Liquidity Support

GM's 8.375 percent bond due in July 2033 rose 1.75 cents to 25.75 cents on the dollar, or less than half its price of two months ago, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The bond yielded 32.5 percent.

``Shareholders are likely to be wiped out, effectively,'' Bruce Zirinsky, co-chairman of the financial restructuring department of Cadwalader, Wickersham & Taft LLP, said in a phone interview from New York. ``If you look at the GM debt, it's trading at a substantial discount, at stress prices.''

GM, in a regulatory filing today, said the global economic and credit turmoil requires the company to find ``additional near-term liquidity support.''

``Based on our estimated cash requirements through December 31, 2009, we do not expect our operations to generate sufficient cash flow to fund our obligations as they come due, and we do not currently have other traditional sources of liquidity available to fund these obligations,'' GM said.

Dealers Petitioned

GM asked dealers to petition the U.S. Congress for funds for the industry, saying the credit crisis is preventing automakers and suppliers from getting needed loans.

The automaker offered a proposed letter on its Web site suggesting dealers say that ``helping our industry in the short term will have a much lower cost than addressing the effects of a failed industry in the midst of an economic turnaround.''

GM hasn't posted an annual profit since 2004 and sales in the U.S., its largest market, have declined every year since 1999.

Implied volatility for GM options exceeded 300, a level Lehman Brothers Holdings Inc. topped before its bankruptcy filing and American International Group Inc. reached prior to the U.S. government's bailout. Implied volatility, the gauge of option prices for GM at-the-money contracts expiring in 30 days, climbed 43 percent to 326.97 at 2:40 p.m. in New York, according to data compiled by Bloomberg.

GM's November $3 puts were its most-active contracts, with 15,550 changing hands. They more than doubled to 70 cents. December $2.50 puts jumped 62 percent to 89 cents. The contracts give the right to sell GM shares for a certain amount by a given date.

pana si cei de la deutsche bank cred ca gm e foarte aproape de faliment, recomandand tuturor actionarilor gm sa-si vanda actiunile atata timp cat mai valoreaza ceva, ei sustinand ca e posibil ca intr-un an actiunile gm sa valoreze cat o para chioara:

Orice s-ar intampla GM nu va fi lasata sa dea faliment.

Actiunile General Motors au coborat in ultima sedinta de tranzactionare bursiera cu 15%, pe fondul unui recul generalizat al pietelor de capital.

Capitalizarea GM a ajuns astfel la minimul ultimilor 65 de ani, dupa scaderi semnificative in ultimele cinci zile, cauzate de temerile privind capacitatea grupului de a-si asigura lichiditatile necesare in primul trimestru din 2009, potrivit Reuters. Titlurile producatorului auto american se prabusisera vineri cu 40%, dupa anuntarea unor pierderi-record in trimestrul al treilea, iar in timpul sedintei bursiere de luni au pierdut 30% din valoare. Astfel, toate actiunile GM ajunsesera sa mai valoreze ieri seara (ora Romaniei) 1,78 mld. $, adica mai putin decat companiile romanesti din Top 10. Astfel, GM valoreaza pe bursa cat BRD sau cat doua treimi din Petrom.

Si alte companii din domeniu au consemnat scaderi, in principal actiunile Ford, cu 8,3%, care a ajuns astfel la o capitalizare de 4,3 mld. $. Analistii grupului financiar JP Morgan au precizat ca GM dispune de mai multe variante pentru imbunatatirea lichiditatii, insa supravietuirea grupului pe termen scurt necesita interventia guvernului si implicarea furnizorilor de piese auto. Chiar daca interventia statului va reduce riscul unui faliment, costurile vor fi majore pentru actionari, considera analistii. Casa Alba a anuntat ca este gata sa analizeze orice propunere a Congresului pentru accelerarea acordarii de credite pentru sectorul auto american, in cadrul programului de stimulare a productiei de autovehicule cu consum si emisii poluante scazute, care dispune de 25 de mld. dolari. Totodata, GM a anuntat noi masuri de stabilizare a lichiditatii, insa a estimat ca fondurile grupului vor fi aproape de nivelul critic necesar in 2008 si sub acest prag in primele doua trimestre din 2009. Potrivit raportarii facute saptamana trecuta, pierderile General Motors (GM) au urcat la 21,26 mld. dolari in primele noua luni ale anului, dupa ce producatorul auto american a raportat un rezultat negativ de 2,5 mld. dolari pentru trimestrul al treilea. GMa cerut sprijinul autoritatilor americane printr-un nou program de creditare a intregii industrii auto americane, cu fonduri de 25 mld. dolari.

poate o cumpara patriciu. well, daca nu ar fi fost dobitoci si ar fi luat masuri din timp, n-ar fi ajuns la nici un faliment. cind esti prost ca noapte oricum dai faliment, cu sau fara crize mondiale