GM Worth More Than Ford?

Edward Niedermeyer
by Edward Niedermeyer
gm worth more than ford

So says the bond market according to Bloomberg. And yes, we’re definitely talking about the “New GM.” Using a Deutsche Bank formula for analyzing the bond market, demand for GM debt shows the company to be worth about $33 billion post-bankruptcy. By comparison, the same formula estimates Ford’s value to be about $19.9 billion. Still, that valuation shows just how little the taxpayer intervention in GM bought for its $65 billion investment. The Deutsche Bank report, by analyst Rod Lache, indicates that GM’s post-bankruptcy value will be on-par with its 2002 value. But, “Much higher — and consistent — levels of profitability” will be needed to keep that market value, according to Credit Sights Inc analyst Glenn Reynolds (no relation to the famed blogger). “It takes more than government debt-to-equity swaps.” There’s always a catch, isn’t there?

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  • Strippo Strippo on Jun 04, 2009
    The worth of a thing is what will it bring. With GM it’s not muchy I'm imagining that Master Po dude what called Kwai Chang Caine "Grasshopper" saying this. It's working for me. (RIP DC. You da Man.)

  • Flashpoint Flashpoint on Jun 04, 2009

    JCKIRLAN I specifically avoided giving names because of my employment...

  • ZoomZoom ZoomZoom on Jun 05, 2009
    Flashpoint : I specifically avoided giving names because of my employment… And for good reason, too. I would never buy stocks that are still going down; as are most of those in your link...

  • Flashpoint Flashpoint on Jun 06, 2009

    ZoomZoom So in your opinion its stupid to buy into stocks that are low but have had extremely high apexes - which are currently rolling out new drugs? I bought into Palm, Walmart, Ford and a bunch of other stock that were on decline ... with 1000 shares each mentality. Now I'm sitting on top of a couple million dollars. How do you say that my picks are bad? BUY LOW AND SELL HIGH.