GM....ouch

On bloomy they said they would take it off the tabel in regards to keeping the the common divy where is at... they may cut it like they did 1993.
 
they may cut it all.... if you check out there financially there financial leveraged with alot of debt... when earnings gets hit the EPS drops hard...

Just look at the all the kinds of debt they have from senior secured --- to unsubordinated debt..

@25ish it look pretty cheap though.
 
Looks a lot like what happened to Ford not too long ago. Bonds went to junk and came back. GM has to borrow in '06 and there is a UAW thing in either '06 or '07. If your a conspiracy nut you'd believe they fk'd the company to get UAW to drop a lot of concessions, then put everything back on track and pay the top some big bonuses. It is rather surprising that they are the only ones with dreadful results.
 
their crooks if that were to happen... its just going to hurt the working middle class. the only thing postive out of that is the top doggs pay higher taxes.. which in turn gives the govt extra funds for tax credits for the working poor.. that it if that. :mad:
 
The real story of course is if GM's debt is downgraded to junk. I believe it's only one notch above right now. That is the event that would open the floodgates of pain on the whole market, not just GM. The automobile sector is the largest borrower in the corporate debt markets, and GM is the largest of them. If their bonds went to junk the amount of forced selling would overwhelm the corporate debt market (the charter of many income funds does not allow them to hold junk). Corporate spreads in general are the tightest they've been in two decades, so there is a lot of room for things to come off. The corporate debt market is very very firm right now and if it did manage to stabilize without major damage, GM is still screwed because they have so much debt that needs to be rolled over next year.

You can buy exchange traded GM debt that after today is yielding about 8.5%. I'd own that way before I'd buy the common for it's yield. Wouldn't touch it with a ten foot pole right now though. As a frame of reference, Delphi Automotive has one class of debt that is one notch below investment grade and it's yielding about 11%. Tread carefully.
 
I bought dph debt today i thought it was a bargin i locked it at 12.25% at 17.65 going long and am willing to double down to.

also bought some GM debt today as well got it yielding 8.5% @21.89


If you bought Fords debt 2 years ago you would have made a great return 6-7 pts plus 9 divys to
 
tried to hit the bid this morning at 17 but the bastards didnt fill it.. i later tried putting in limit orders and they bought at the offer or in between.

lots of buying pressure this morning with DPH went from 17.26 to 18.50 in about 2 hours.
 
Real interesting to read the posts. I'm with lescor. Please let me be the bulldozer and not the dirt.

GM sure has a nice chart, for shorting.
 
I'm pleased! I had puts on GM and TASR @ 32.50. I bought them at pennies and was not expecting this at all.

I had some heavy derivative losses as a result of being long QQQQ but I made all that back with GM today
 
You must log in or register to reply here.
Back
Top