TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Bankruptcy Probable for GM Rolfe Winkler, CFA submits: WSJ: General Motors Corp. still hopes to avoid a bankruptcy, but the option is becoming increasingly unavoidable as the company struggles to achieve key goals toward completing an out-of-court restructuring.Complete Story » seekingalpha.com |
GMAC Plunging Even Deeper into Taxpayers' Pockets Tyler Durden submits: GMAC, which has already received a direct taxpayer donation of $13.5 billion, and has recently been accused of poaching depositors with higher rates than permitted by the FDIC, is turning to the very same FDIC with the hopes of now issuing FDIC-guaranteed debt. Never one to miss a well-engineered rally which JP Morgan (JPM), Morgan Stanley (MS) and American Express (AXP) already capitalized on and sold yet more shares at ridiculous valuations, Bloomberg reports that GMAC will be coming to market shortly with a TLGP issue. The notes, whose principal is unknown but capped by the May 21 permitted carve out of $7.4 billion, will have a December 2012 maturity, and will be underwritten by Bank of America Corp., Barclays Plc, Deutsche Bank AG and JPMorgan Chase & Co.As all this taxpayer money will ultimately be funneled back to taxpayers who are naive enough to purchase either a bankrupt [[GM]] or a bankrupt Chrysler turbocharged plywood soapbox, it is safe to say that not much of it will be utilized and hopefully in 3 years, when GMAC faced chapter 7, taxpayers will be able to recover some of their cash. Of course, this is much more than can be said for Obama Capital Unlimited Liability Company's investment in GM and Chrysler.Complete Story » seekingalpha.com |
Raytheon Company Q2 2009 Earnings Call Transcript Raytheon Company (RTN)Q2 2009 Earnings CallJuly 23, 2009 9:00 am ET Complete Story » seekingalpha.com |
Stocks, Bonds and Automobiles Outlook This was a rough week for economic optimists and stock market cheerleaders. The stock market took its biggest beating in months. Long-dated treasuries reached their lowest yields in months. Auto sales dropped sharply in September without the benefit of "Cash for Clunkers." Let's discuss.GM reported a sales decline of 45% and Chrysler a drop of 42%. The government and its UAW supporters have their work cut out. Both companies are losing markets share and are directionless in terms of product. GM, Chrysler and Ford (F) need annual U.S. market auto sales of approximately 15mm to 16mm. The current sales pace is just over 9mm. With traditional lending standards back in use (one actually has to prove their ability to make payments) it is unlikely that auto sales will reach necessary levels, even when the economy rebounds. How critical is it for the Detroit Three to sell to subprime borrowers? Prior to its bankruptcy filing, GM's management asked the government to assist GMAC in lending to subprime borrowers. GM and Chrysler are done in their current forms and as long as they have to depend on UAW labor.Complete Story » seekingalpha.com |
Lear Management: Unintentional Comedians Brendan Wagner submits:Lear is back folks. Well almost back. They're about to re-emerge from bankruptcy, after wiping out holders of the previous class of common stock. Barclays was out Thursday morning upgrading what I'll assume are the "new" shares. They're probably making a good call -- now that management owns enough of the new shares to actually care about the equity holders in this new "structure." I put this info out there not because I enjoy ranting about inept management, but rather as a warning to people who assume common stock ownership is (1) as safe as you think it is, and (2) that management is on your side all the time.Complete Story » seekingalpha.com |