GM invested two billion in hedge funds to test the hedge fund market. and now they are considering investing billions more.
their 90 billion pension fund in investments is less than a seven % return on the dollars. which they need to replenish the funds pension outlay.and keep it afloat.
the fund is staring to feel the pinch. because of low interest rates, and market conditions.
but hedge funds are the highest type of risk for any investor, unless they have their own printing press,...
gm management should forget about the hedge fund investing..
those funds are not regulated at all, by any government body.
the commission fees run 2% plus 20% of any profits that may arise.
If Gm thinks they got problems now, wait and see what will happen to the gm pension fund if they start investing in hedge funds...
at the end of the day gm retirees and future retirees if there are any left can kiss their pensions goodbye..
Nice lot of BS here. Proof that GM is betting the farm on very risky investments is where? I don't think you are aware that GM want to continue selling cars, they do NOT want to file Chapter 11, thay DO control the automotive market no matter what your opinion is, they will survive as we know them, the pension fund is safe! What the hell does a Canadian know about it anyway?
Must be since most of the financial guys that study the books of companies are quite worried. Probably more a denial thing, actually. GM isn't beyond hope. All they need to do is figure out how to pay off ~278 billion dollars in debt with the ~18 billion dollars they have in the bank while loosing an additional 6 billion dollars a year. Should be a piece of cake! ;-)
James, I am a "financial guy" and I'm puzzled by your debt figure, as well as your 18 billion dollar figure. I just visited GM's site and pulled off their SEC Filings. I'll post their Condensed Balance Sheet for September
30, 2005, below. You will note therein that GM had "Total Debt" of $ 446 Billion at that time. But the most important figure is the company's "Current Debt", which was recorded at $ 74.7Billion. Now if you take a look at the Assets, you will see "Current Assets" of $ 53.8Billion. To this, you have to add the Current Assets of Financing and Insurance Operations, which look like this: Cash & Cash Equivalents $ 21.4Billion Investments in Securities 16.5Billion Finance Receivables - Net 177.0Billion
Loans Held For Sale 17.6Billion Assets Held For Sale 18.7Billion ------------------- Current Assets of $ 251.2Billion Financing & Ins. Ops.
Now James, if we add this figure to the $ 53.8Billion figure above, we find that as at September 30, 2005, GM had Total Current Assets of $ 305Billion, which would quite easily handle their Current Debt, which was $ 74.7 Billion. I fail to see the liquidity crisis you seem to allude to. Even if GM had a temporary liquidity problem at some point, they could raise Billions of dollars quite quickly by leveraging up some of their Fixed Assets, which I'm sure would have substantial value over Book Value. So let's not get out the shovels to bury GM just yet. Her demise is highly exaggerated and the funeral wake is premature.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(As
restated,
see Note 1)
Sept. 30, Sept.
30,
2005 Dec. 31, 2004
(Unaudited) 2004 (Unaudited)
---------- -------- ----------
ASSETS (dollars in millions)
Cash and cash equivalents $35,089 $35,993 $37,589
Marketable securities 18,012 21,737
21,034
------ ------ ------
Total cash and marketable securities 53,101 57,730
58,623
Finance receivables - net 177,082 199,600
193,755
Loans held for sale 17,581 19,934
20,116
Accounts and notes receivable (less allowances) 16,285 21,236
StingRay Thank you for showing these bigoted idiots the facts regarding General Motors. Is GM in some trouble? For sure! Can they recover? For sure. Now Delphi is a horse of a different color. Delphi and the UAW are in for a tough time of it.
NOYK in Florida Over 10,000 days at GMPT/GMED/CPC/Chevrolet/Central Foundry Divisions
"No One You Know" wrote in message news: snipped-for-privacy@g14g2000cwa.googlegroups.com...
There seems to be a lot of fear mongering going on regarding GM's financial status. Part of the problem is that a lot of people just seem to like to see big business fail. Others just naievely believe whatever they read from the people dissemminating the vicious propaganda and just jump on the fear bandwagon. And others just haven't taken the time to look at GM's actual financial statements, or if they have read GM's statements, they just don't understand them. We also have to remember that financial statements are merely a snapshot in time of a company's well-being and that company's like GM often have considerable hidden worth in depreciated assets - worth that isn't even reflected on the Balance Sheet. Yes, GM is presently losing money. Can they sustain these losses for a reasonable period of time? Yes. Are they taking firm action to mitigate these losses and return to a profitable footing? Yes. Will GM be profitable again before it's too late? Definitely. Will GM be operating successfully long after we're all dead and gone? Without a doubt. But they have a lot of hard work, in the short term, ahead of them. A lot of hard decisions, such as plant closings, have to be made and followed through on. How can we help them? By providing feedback whenever the opportunity arises and by buying GM product. We're all subjective in our taste for our vehicles and we're all passionate about them. And we're all in this GM NewsGroup for a reason - there is some GM product that we are or have been passionate about and we are all anxious to see GM return to strong operating results, so we can continue buying GM for many years to come.
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