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Old 10-10-2008, 08:36 PM
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Colorancher
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Default RE: Forget the Camaro

One of the key things to keep in mind is that the drop in stock prices does not affect the real performance of a company. It really does nothing to the bottom line except perhaps in secondary issues like bond prices. Yes, GM may have to pay more interest for future bond issues, but the stock price does not affect their ability to produce or profit (much). They have to move cars. While the market certainly helps emotionally (and not realisticaly) support better "quality" cars (read: Toyota), GM will sell lots of cars. Their bang for the buck signifiaantly outweighs Toyota. I think they are a bargain at this stock price and others will also. I predict someone will make a hostile takeover bid, probably a foreign company. The price is just too low and a great bargain. My suggestion buy in heavy just after the election. It doesn't even matter who wins. They could easily screw up the Camaro, however. It is really just a Pontiac G8 with a semi-new body. They blew it with the GTO so who knows.
As far as Chrysler, guess what, they don't care except how many they are selling. The price of Challengers is very competitive with other cars in the same performance range yet look a lot better. They will do all right. They got a good deal in the first place from those German suckers so they can hang on for quite a while, even in the face of lower sales. They will not sell these valuable facilities and plants a the lowest values in stock history, they will hang on for a while.They haven't lost any stock value, they are privately owned. Just look at their marketing plan. They have never advertised the Challenger yet they are selling rapidly.