Friday, August 17, 2012

SIlly Season at Forbes

There are plenty of valid concerns about the GM/Chrysler bailouts.  I've always held that they should have been allowed to enter 'prepackaged' BK proceedings.  But it is what it is.

Having said that, some guy at Forbes needs to take his meds.

...Now Forbes tells us GM is probably heading for bankruptcy again.  Its stock price would have to more than double, to $53.00 per share, for taxpayers to recover their “investment.”  Instead, stock values have declined by 39 percent in absolute terms, and 49 percent relative to the Dow average, since GM went public in 2010.  Louis Woodhill of Forbes thinks political considerations would prompt Obama to “ride the stock down to zero” instead of cashing out at a massive loss to the public....

Woodhill bases his case on one car-mag's unfavorable review of one Chevrolet product (the Malibu ECO).  That particular model is expected to be a small portion of overall Malibu sales.  Weak tea.

But there's more.  The author also mentions the growth of Volkswagen--without mentioning that VW has acquired a number of competitors whose sales dollars are wrapped into VW's numbers.  He also blasts GM's CEO Akerson--which may be the most valid of his complaints--but Akerson is not long for the GM world anyhow.

Is GM a risk?  Yes.  But the same could be said of VW, Ford, Mazda (which has REAL trouble) and certainly Fiat/Chrysler.  That's business.  But Woodhill's "case" isn't serious.


Anonymous said...

Dad, did yoy read this one? Lots of links.

40 Points That Prove That Barack Obama And Mitt Romney Are Essentially The Same Candidate

I think I'm going to sit out this election for the good of my soul.

Jim said...

Anon: On a similar note, I'm sure they both agree that if someone stops breathing they will die.

"4. Neither candidate supports immediately balancing the federal budget."

That's because, whatever their faults, neither one is insane.