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$4.11 -0.79 (-16.12%)
12/4/2008 4:01 PM

General Motors Corp (GM)

CAPS Rating:
*

The Company is engaged in the worldwide development, production, and marketing of cars, trucks, and parts.

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Avatar TMFRoybotnik (< 20) Submitted: 7/14/07 12:29 AM : Underperform Start Price: $35.65 GM Score: 43.51

They're losing money even though they have massive sales, so they go and spend tons and tons of money on terrible marketing campaigns filled with famous actors? Why push sales when that obviously isn't the issue? Ridiculous.

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Avatar SH2F088 (97.15) Submitted: 9/17/07 1:04 AM

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GM has very large fixed costs associated with retirees and current labor that is hard to change (though there are some expectations that current negotiations will reduce the pressure on this some). There are also costs associated with running the myriad factories that have a lot of inertia. So profit margins are better with higher sales, and with sales that match factory output/expectations. This is why they target sales levels.

As you may realize with so much revenue and so little market cap, a little bit of profit margin goes a long way to drive the earnings. That is due to the high leverage and is a big reason why this stock is not for the faint at heart.

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Avatar dwot (100.00) Submitted: 11/22/07 9:10 AM

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GM is "technically" already bankrupt.

Michael Shedlock is one of the best...

http://globaleconomicanalysis.blogspot.com/2007/11/desperation-at-gmac.html

Run while you still can...

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