Poop Why GM stocks are tanking?

Msmith · 08-03-2011, 12:01 PM

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%.

**CrazyPhuD** · 08-03-2011, 12:02 PM

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

Msmith · 08-03-2011, 12:05 PM

Look at Apple.

**Dave Lane** · 08-03-2011, 12:09 PM

Are you Rexjakes dad by any chance?

**CrazyPhuD** · 08-03-2011, 12:11 PM

Quote:

Originally Posted by Msmith

Look at Apple.

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.

Stewie · 08-03-2011, 12:11 PM

Quote:

Originally Posted by Msmith

Look at Apple.

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.

Stewie · 08-03-2011, 12:18 PM

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!

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.

**BossChief** · 08-03-2011, 12:19 PM

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

next question

**loochy** · 08-03-2011, 12:20 PM

Quote:

Originally Posted by CrazyPhuD

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

We aren't in one already?

Stewie · 08-03-2011, 12:20 PM

Quote:

Originally Posted by BossChief

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

next question

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.

Reerun_KC · 08-03-2011, 12:22 PM

Quote:

Originally Posted by loochy

We aren't in one already?

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

**CrazyPhuD** · 08-03-2011, 12:23 PM

Quote:

Originally Posted by loochy

We aren't in one already?

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.

Reerun_KC · 08-03-2011, 12:29 PM

Quote:

Originally Posted by CrazyPhuD

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...

Stewie · 08-03-2011, 12:32 PM

Quote:

Originally Posted by Reerun_KC

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.

acarter25 · 08-03-2011, 12:33 PM

Quote:

Originally Posted by BossChief

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

next question

This

08-03-2011, 12:01 PM
Msmith Veteran Join Date: Jan 2004 Casino cash: $9128035	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%.
Posts: 1,994

08-03-2011, 12:02 PM	#2
CrazyPhuD Meow Join Date: Jun 2005 Casino cash: $10005050	Because the stock market itself has tanked and the economic future is likely headed into another recession? __________________ "Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a t*rd by the clean end"
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08-03-2011, 12:05 PM	#3
Msmith Veteran Join Date: Jan 2004 Casino cash: $9128035	Look at Apple.
Posts: 1,994

08-03-2011, 12:09 PM	#4
Dave Lane Space Cadet and Aczabel Join Date: Aug 2000 Location: Kanab, UT, USA Casino cash: $9333275 VARSITY	Are you Rexjakes dad by any chance? __________________ Thanks, Trump for the civics lesson. We are learning so much about RICO, espionage, sedition, impeachment, the 25th Amendment, order of succession, nepotism, separation of powers, 1st Amendment, obstruction of justice, the emoluments clause, conflicts of interest, collusion, sanctions, oligarchs, money laundering and so much more.
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08-03-2011, 12:18 PM	#7
Stewie MVP Join Date: Oct 2006 Location: West of the Equator Casino cash: $1899901	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! 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.
Posts: 13,606

08-03-2011, 12:19 PM	#8
BossChief SuperBowl or bust Join Date: Dec 2008 Location: BF Iowa Casino cash: $1864088	because they continue to make junk cars and charge just as much as cars that are far more reliable. next question __________________ Dreams do come true... http://www.chiefsplanet.com/BB/showp...postcount=1407
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