GM Stock Factoring in Bankruptcy?
With so much uncertainty surrounding the auto makers these days it is interesting to watch the stock prices of both General Motors (GM) and Ford (F).
General Motors has been on slow decent the last two months and now is on the brink of falling back under $2 a share. The stock hit a low of $1.70 back on November 20th, 2008 and had since not fallen below $2.50, let alone $2.
Even with a freshly submitted recovery plan requesting another $30 billion investors sold the stock as Obama’s new car czar team has given hints that a pre-packaged bankruptcy may be the only way to go.
The bottom line is that every day GM stock continues to slide to lower prices it is a sign that shareholders are giving up hope and the overall majority feels a bankruptcy is almost guaranteed to be in the cards.
Perhaps GM needs to be added to list of companies nearing bankruptcy.
The Most important challenge GM faces is to win back the trust of the tax payers. Giving away billions of tax payer money is not going to go under good sights of the consumers