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Author Topic: 2 years after IPO, GM is piling up cash Back to Topics
Nitewolf
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Anchorage

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Message Posted: Nov 18, 2012 1:03:39 PM

By TOM KRISHER — AP Auto Writer

DETROIT — Two years after a wounded General Motors returned to the stock market, the symbol of American industrial might is thriving again.

Sunday marks the anniversary of GM's initial public stock offering in November 2010. The company has made money for 11 straight quarters, piling up more than $16 billion in profits. Its cars and trucks are selling for good prices. And sales are strong in China.

But there are signs of trouble. GM's U.S. sales, the prime driver of its profits, aren't rising as quickly as the overall market. There's been turmoil in the executive ranks, and the company is hemorrhaging cash in Europe.

Since the IPO, here are GM's achievements, struggles and question marks.

ACHIEVEMENTS:

BIG PROFITS: GM is making money - nearly $4
Visit Anchorage Daily News for full article
REPLIES (newest first) Post a Reply
DrCashFlow
Champion Author Massachusetts

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Message Posted: Nov 20, 2012 4:57:27 AM

gm should move hq to china
RonElp
All-Star Author El Paso

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Message Posted: Nov 20, 2012 4:48:43 AM

Pay off some debt and save the interest.
bston
Champion Author Oklahoma City

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Message Posted: Nov 19, 2012 10:46:01 PM

It won't work, just like before.
StArrow68
Champion Author Oakland

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Message Posted: Nov 19, 2012 12:38:53 PM

What is surprising is that the Liabilities went down as little as they did after a limited bankruptcy. Other Current Liabs only dropped from 28B to 20B and LT Liabs from about 10B to 7B, they still have plenty of hangover from the Union left to pay in the future. As long as they don't fund those that cash is already spoken for, until they go back to the well again.
doctorindyj
Champion Author Santa Fe

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Message Posted: Nov 19, 2012 12:15:17 PM

So in other words stockpiling cash but won't pay back the taxpayers because things could be bad shortly.
Shaduu
All-Star Author Twin Cities

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Message Posted: Nov 19, 2012 11:55:29 AM

I dont see anybody crying that Obummer owes the Goverment 6 trillion or is it 7. some Morons still voted for him anyway.
GM paid the government with shares its over sheesh.
Norm10
Champion Author British Columbia

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Message Posted: Nov 19, 2012 10:44:19 AM


Don't worry - GM will still find ways to squander this and beg for more tax payer money!
Van_Halen
Champion Author Atlanta

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Message Posted: Nov 19, 2012 9:38:53 AM

.
They should have gone into bankruptcy because the Bail Out was illegal! And speaking of the bailout, if a business can't make it after being given BILLIONS of free dollars and not required to pay ANY taxes for the next 10 years, they should have been liquidated!
GDAE
Champion Author Wichita

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Message Posted: Nov 19, 2012 9:02:59 AM

"Good...then start buying back the stock at $53/share so the taxpayers can get their money back."

Yup!
derKraut
Champion Author Ontario

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Message Posted: Nov 19, 2012 8:56:13 AM

The Canadian taxpayer would like some debt relief so pay off your debt to us too GM.

[Edited by: derKraut at 11/19/2012 8:56:43 AM EST]
Dennis783
Champion Author Des Moines

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Message Posted: Nov 19, 2012 8:38:01 AM

pay off their government loans first
altonb1
Champion Author Pennsylvania

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Message Posted: Nov 19, 2012 7:36:44 AM

Good...then start buying back the stock at $53/share so the taxpayers can get their money back.
alex395
Champion Author Louisville

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Message Posted: Nov 19, 2012 7:31:49 AM

Absolutely no Government Motors cars or trucks, ever. Keep um and paste UAW decals all over to make yourself happy.
blupupher
Champion Author Houston

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Message Posted: Nov 19, 2012 7:24:39 AM

so are they going to completly pay back their debt to the govt?
BoerneWatch
Champion Author San Antonio

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Message Posted: Nov 19, 2012 7:13:06 AM

The author seems puzzled as to why the stock is down while GM is "piling" up cash.

Question: "Why does Wall Street not like GM?"

Answer: They know GM is not stable. GM is making money in China. Period. But, their company is a small scale version of what is wrong with European countries and our own. Union obligations will slowly eat up that extra cash faster than it can come in. China profits will shrink as their economy matures. GM needed to go through bankruptcy and they probably will in the future which makes their stock worthless.
Sneakers55
Champion Author Houston

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Message Posted: Nov 19, 2012 7:00:51 AM

On Nov 18, 2012 7:30:10 PM, YumaFellow wrote:

>Leadership has always seemed to be a problem at GM; it appears that it
>remains to be seen if the current leadership is up to the task.

Government Motors can't even get a car guy to run the company. They have a telephone guy running the company. And not even a telephone guy from a good company like AT&T or Verizon. They had to take one from bankrupt and fraud-ridden MCI.


[Edited by: Sneakers55 at 11/19/2012 7:03:05 AM EST]
Sneakers55
Champion Author Houston

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Message Posted: Nov 19, 2012 6:54:06 AM

On Nov 19, 2012 5:25:34 AM, zoomer20 wrote:

>Go GM! Be American, Buy American!

You must work for Government Motors. Buy a Ford. They're much better and they didn't take money at the bailout trough like GM.
cheap59
Champion Author Michigan

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Message Posted: Nov 19, 2012 6:51:38 AM

Now pay the taxpayer back!
TxMtb
Champion Author Ohio

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Message Posted: Nov 19, 2012 6:50:29 AM

Don't they still owe us money?
Hemond
Champion Author Providence

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Message Posted: Nov 19, 2012 6:49:03 AM

So those of us who were GM stockholders and lost huge amounts of our investments in the old GM are supposed to be happy? The American way is to screw the former owners of the company?
zoomer20
Veteran Author Indiana

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Message Posted: Nov 19, 2012 6:25:34 AM

Go GM! Be American, Buy American!
Straitliner
Champion Author Illinois

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Message Posted: Nov 19, 2012 6:21:16 AM

So am I. Saving jobs is always a good measure.
leeac
Champion Author Ohio

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Message Posted: Nov 19, 2012 5:10:03 AM

I am glad Obama and the government saved GM and all those good jobs.
Luckylindy
Champion Author Milwaukee

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Message Posted: Nov 19, 2012 4:56:56 AM

They have 1 big bill to pay yet.
djgunrunner
Champion Author Salt Lake City

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Message Posted: Nov 19, 2012 4:55:34 AM

Then why don't they finish paying of the American people?
JohnofGB
Champion Author Flint

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Message Posted: Nov 19, 2012 1:51:56 AM

And to the author roadrunner, GM did go bankrupt. Ask the bondholders. Your anti union rant would have hurt many more than your over developed sense of superiority.
Vette1967
Champion Author Albany

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Message Posted: Nov 19, 2012 1:51:32 AM

Lets hope they don't squander it.
JohnofGB
Champion Author Flint

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Message Posted: Nov 19, 2012 1:48:31 AM

They need to buy back the government stock and pay them back.
roadrunnerMO
Champion Author Kansas

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Message Posted: Nov 19, 2012 1:41:12 AM

Had they gone bankrupt, they would have emerged stronger than ever. The union would be gone or their air would have been out of their sails. No cost of $5,000 plus added to cost of each car to pay retirement benefits which are outragious. Pay is far too high for the skills possessed. That is true of others who have unionized jobs such as the school teachers in some parts of the country. REMEMBER THE BOND HOLDERS WHO WERE TOTALLY SCREWED OUT OF ALL THEIR INVESTMENTS BY OBAMA.
Eugenian
Champion Author Oregon

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Message Posted: Nov 19, 2012 1:17:07 AM

Good thing we didn't listen to the "let Detroit go bankrupt" fools.
Nancy&Len
Champion Author Cleveland

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Message Posted: Nov 19, 2012 12:58:06 AM

And the taxpayers got screwed.
pricewar
Champion Author Ogden

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Message Posted: Nov 19, 2012 12:39:04 AM

All that bail out money waisted. The bankruptcy route would saved us from debt.
Thanks for your inexperience mr Obama
danindenver
Champion Author Denver

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Message Posted: Nov 18, 2012 11:21:02 PM

When do I get my money back?
LostInNY
Champion Author New York

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Message Posted: Nov 18, 2012 11:14:47 PM

yeah well my old gm stock is worthless...thanks a lot GM
davenles
Champion Author Texas

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Message Posted: Nov 18, 2012 10:56:16 PM

If they are doing so well, then pay us back.
Mark8601
Champion Author Bakersfield

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Message Posted: Nov 18, 2012 10:46:34 PM

Lets hope it lasts.
HoBuddy2012
Sophomore Author Toronto

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Message Posted: Nov 18, 2012 10:04:58 PM

good...
ExplorerWA
Champion Author Washington

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Message Posted: Nov 18, 2012 10:00:33 PM

This is released just to make us taxpayers feel good.
lesabreAZ
Champion Author Phoenix

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Message Posted: Nov 18, 2012 9:57:09 PM

what a re- VOLTing development
dh0770
Champion Author Colorado

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Message Posted: Nov 18, 2012 9:21:56 PM

Pay back the bailout....and we keep the stock shares as a "cost of business"!
MidNJ
Champion Author New Jersey

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Message Posted: Nov 18, 2012 9:18:37 PM

Perhaps Mitt Romney was right when he said we should allow GM to go bankrupt.

Or was he????
yankeeriffraff
All-Star Author Phoenix

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Message Posted: Nov 18, 2012 9:16:45 PM

so when do they pay back the bailout money?
ScottTee
Champion Author Detroit

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Message Posted: Nov 18, 2012 9:16:10 PM

They are gonna need it
drpepperTX
Champion Author Texas

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Message Posted: Nov 18, 2012 8:47:08 PM

Oh come on orphancarguyPE, GM still owes U.S. taxpayers $27 billion, and U.S. taxpayers still own under a third of GM, or 500 million shares, which remain underwater. The stock will have to trade at around $53 a share for taxpayers to breakeven; they currently trade at around $23. In August, the Treasury Dept. revised higher the cost of the auto bailout by $3.4 billion, up from the prior estimate of $21.7 billion.
Tacodan
Champion Author Cincinnati

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Message Posted: Nov 18, 2012 8:41:59 PM

LET DETROIT GO BANKRUPT ……!
knutzAL
Champion Author Alabama

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Message Posted: Nov 18, 2012 8:39:16 PM

how bout paying me off for the bonds that you basically gave to uncle suga!
humblepie
Champion Author Toledo

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Message Posted: Nov 18, 2012 8:30:18 PM

a cruel cruel joke, nothing more
YumaFellow
Champion Author Arizona

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Message Posted: Nov 18, 2012 8:30:10 PM

Leadership has always seemed to be a problem at GM; it appears that it remains to be seen if the current leadership is up to the task.
TripleHs
Champion Author Austin

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Message Posted: Nov 18, 2012 7:43:11 PM

good for the company and its investors
TableTalk
Champion Author Virginia

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Message Posted: Nov 18, 2012 7:12:33 PM

Maybe out of the goodness of their heart they can pay the gov't back for the loss that has accrued on the Government's "bad" investment. Let's do the math: 13.4 billion under Bush + 36.1 billion under Obama = 49.5 billion. 23.1 billion has been repaid as of March, 2012. That leaves outstanding 500 million shares of commons stock and 26.4 billion to go. With the stock price at $23.85, If sold on Monday at that price, the Gov't would earn 11.9 billion (not counting commissions). This would be a loss of 14.5 billion. With $16 billion in the bank, I think they could make up the difference and we won't fret about the lost interest money on the deal.
dorisntx
Champion Author Fort Worth

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Message Posted: Nov 18, 2012 6:50:08 PM

price your cars so we can afford them then!
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