General Motors Profit Falls 90 Percent Compared With a Year Ago

[TOY4TWO]

http://www.cbsnews.com/stories/2007/...siness_2756882

[marlboromike]

Guess the price of the SKY & Solstice are going to rise...they have to meet Standards & Goals.

[ggccg]

They still made money... and would have made more if it wasn't for the predatory sub-prime lending antics of GMAC Finance that GM still owns 49% of.

[cerberus]

Yup. GMAC put a big drag on GM's financial performance as ggccg mentions. More to this than just the headline.

[rs0987654]

The objective that people don't think about is that the price of a stock should be the present value of its long term revenue stream. The sub-prime lending problem is that it is just a 'blip' in that stream. The value is still there.

The real news that people have not been focusing on is that North American Operations is breaking even. Every other market is doing okay, the America's have challenges in developing cars that are characterized by providing cars that meet the increasingly more demanding fuel economy needs while providing more value. Kappa's do that and the case can be made that potential longer versions designed to carry more people for more purposes are needed. But Astra's are also coming and more hybrids are coming. Lutz is trying develop a diesel hybrid to match to the new Zeta platform as he is developing the plug-in hybrid. So, GM is desperately trying to change itself into the company that people will want to buy cars from tomorrow as well as today.

As I said before, this is just a blip.

If you are looking for a LONG TERM investment with growth promise, then GM is a potential candidate that could be nestled into the higher risk part of a portfolio.

[NightSky]

Originally Posted by rs0987654

If you are looking for a LONG TERM investment with growth promise, then GM is a potential candidate that could be nestled into the higher risk part of a portfolio.

I'll try that with about $1,000 and see how it turns out in 10 years.. sounds like a worthwhile risk.