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The price will suffer some hammering...if I have suffer a lost of 90% on my investment...well...jolly well leave it there...take it as if I lost everything...but if my lost is less than 50%...I will take back what is left and re-invest in another counter. if GM manages to pull through this ordeal...it might be another Apple in-the-making...
How many of your friend bought a chevy ? How many bought a Toyota ? How many bought a Honda ? Did you have a friend who own a Jaugar Type X ?
This is the question.
sixsence ( Date: 10-Jul-2009 18:24) Posted:
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NEW YORK (CNNMoney.com) -- After a six-week trip through bankruptcy, the "new" General Motors was born Friday morning owned by the government and free of tens of billions in debt and shed of unaffordable brands, dealerships and plants.
The sale of the valuable assets of the old company to the new GM was completed Friday morning, according to a source familiar with the transaction.
CEO Fritz Henderson is due to make a statement about the closing of the deal at a 9 a.m. press conference.
The new company retains the Chevrolet, Cadillac, GMC and Buick brands, along with most of its overseas operations. It also keeps 4,100 of its 6,000 U.S. dealerships and most of its plants. But 14 U.S. plants will be closed, and the company will eliminate about 20,000 of its 88,000 U.S. employees by the end of the year as it continues to cut costs.
While the new company goes forward outside of bankruptcy, much of its debt and many of the assets it shed in the process remain in bankruptcy. It will take about two to three years for an entity known as Motors Liquidation Co. (GMGMQ) to liquidate under court supervision.
The new GM has a tough road ahead. The company has suffered from decades of market share losses and now accounts for less than 20% of U.S. auto sales. It retains the lead over its rivals such as Toyota Motor (TM) and Ford Motor (F, Fortune 500), although last year it lost its long-time title of world's largest automaker to Toyota.
GM has lost $88 billion since 2005 as its debt rose to an unaffordable $54 billion. Its current crisis came as a downturn in the U.S. economy and credit crunch at the end of last year caused industrywide sales to plunge.
The Treasury has pumped about $30 billion into GM to keep it alive since late last year, and will give it an additional $20 billion before the end of 2009. In return, taxpayers will own 60.8% of the company going forward. Previous shareholders will have no ownership stake in the new company.
This counter can invest ? Any foreign counter expert can advise?