Why GM stocks are tanking?
 

When GM folded last year and wiped out part of my retirement nest eggs/children college funds, I still hoped that given a fresh start with no baggage I might actually be a fool and reinvest its stock again. The IPO was $34 and the price did climb to about $38, but now it is $26! No, I didn't put any money in it but I just scratch my head while the stock is so bad? It does have a consecutive monthly profit and it sales in July was over 7% while the nationwide auto sale was in 1%.

Because the stock market itself has tanked and the economic future is likely headed into another recession?

Look at Apple.

Are you Rexjakes dad by any chance?

Apple could easily go bankrupt in less than 10 years...hell they've almost done it before for exactly the same reasons that it could happen this time. The only advantage they have this time around is that when it happened the first time their execution and marketing missteps were dealing with a MUCH smaller market for computers so they had less margin for error. Plus the general consensus is there is a tech bubble going on again. When recession hits it is likely to pop.

Apple sells trinkets that nearly anyone can afford and you certainly don't need a loan to buy their goods. Selling a car for tens of thousands of dollars is another story.

1) Millions are out of the loan market for any goods.
2) The future doesn't look bright due to many companies (once again) announcing they are going to have mass layoffs later this year.
3) The price of the stock today is a view of sales down the road, not last month.

This might also be a problem. Management seems to think the Volt is selling well... compared to reality.

The July sales numbers are out and the Chevy Volt continues to electrify (get it?) the country. GM sold … 125 Volts last month!


http://www.weeklystandard.com/sites/...ama%20Volt.jpg


Way back in March I made fun of the Volt for selling 281 units in February. Turns out, February was a good month. But wait, there’s more! GM says they’re going to increase production to 5,000 Volts per month in order to keep up with demand. You see, they claim that the reason the Volt isn’t selling is that they can’t keep enough cars on the lot. A GM spokeswoman recently claimed that they are “virtually sold out.” Which is virtually true. Mark Modica called around his local Chevy dealers and found plenty of Volts waiting for an environmentally conscious driver to bring them home.


All told, GM has sold close to 2,700 Volts. (Funny aside: There’s a Volt in my neighborhood and a Volt that parks in my garage at work. So I see almost 0.1 percent of all the Volts in America on a daily basis.) But hey, the EV future is just around the corner.

because they continue to make junk cars and charge just as much as cars that are far more reliable.

next question

We aren't in one already?

I have two coworkers that drive Malibus and love them. I've ridden in one of them once and it's a nice car. I don't know about reliability at all, but they've had no problems.

I think it will get much much worse before it gets better... This country has zero leadership and no true direction.

Perception wise and from mainstreet wise very likely...but from a technical point of view the economy is still growing(very slowly) at least for now.

Actually our company is growing like wild fire due to the economy... We cant meet the demand for our services and have started a waiting list.

I have actually had to stop sales and take the foot off the gas. We damn near burried the company.

We are having to control this insane growth...

What business are you in? Is it something that offers a cheap alternative to the way things were done before? Just curious.

The company I work for is doing well, too, but it's because of Asia and the Middle East, not what's happening in the US for sure.

This