Originally Posted by Thrill.Ride07
Operating costs each month for GM are $2Billion
Now their stock was lower than it was before World War 2.
If GM goes under Millions of jobs will be lost, Billions of dollars each year to the government will be lost
Trillions will be lost for the economy.
I say Bargain Bargain Bargain.
Keep your eyes open!
When I say I think they will get bailed out, I do not think the equity will hold any value.
They will be placed into receivership, the govt will control the restructuring and sale/division of the companies. The govt will also ensure their debt.
I think the equity is worthless, with the amount of debt they have their name and real estate are the only things of value, and in a cash strapped world they have that much less value.
I would really like to see some hard analysis as to where you are deriving your estimate for fair value of GM common. Because I think its about 0.00