GM shares hit 76 year low
May 13, 2009 by Matt Brogan
General Motors shares hit a 76-year low today, one day after a group of its executives disclosed they had sold shares in the struggling manufacturer.
Six GM executives, led by former GM Vice Chairman and product chief Bob Lutz, disclosed on Monday that they sold almost $315,000 in stock and liquidated their remaining direct holdings.
The stock sale underscores the pressure on GM with less than three weeks remaining for it to win deals to slash debt and operating costs with the UAW and bondholders to avoid bankruptcy.
GM is headed for either a bankruptcy filing or an out-of- court restructuring that would wipe out current stockholders by flooding the market with new shares to pay off creditors.
The automaker’s stock could be worthless in a bankruptcy or worth less than 2 cents apiece if it proceeds with plans to issue shares to creditors led by the US Treasury Department.
“It’s a lose-lose situation as far as we see it, and the shares kind of seem to have been doing a levitating magic trick and just staying up there in the $1.50 to $2.00 range,” Standard & Poor’s equity analyst Efraim Levy said. “Given that there is a two-week deadline, coming there should be additional downside pressure.”
The automaker has historically been one of the powerhouses in the best-known measurement of US stocks, the Dow Jones Industrial Average. It has been on the index for 83 consecutive years and despite the dramatic fall in the price of its shares, Dow has still kept the stock as part of the index.
GM’s market capitalisation as of today was about $690 million, making it one of the smaller Dow members.
The company has lost $88 billion since 2004, including a $6 billion lost for the first quarter of this year.
The automaker’s shares fell 19.4 percent, or 28 cents, to $1.16 at 3:59 p.m. on the New York Stock Exchange. The stock had fallen to as low as $1.09 earlier in the day, the lowest since 1933.
GM was first listed on the Dow in 1915. It was removed before being added it again in 1925, and it has remained ever since. Only US conglomerate General Electric Co, which joined in 1907, has been there longer.
Print it: 
Not surprising.
Not only is it not surprising Adam, but judging from the lack of comments here I am guessing that it’s also a case of “no one cares” :)
Poor old GM. I’ll miss them in some strange little way.
Yes, exactly, CarAdvice enough of this GM doom and gloom already
yeesh
im sure the next story we get from advice about GM is that they are finally dead. Go ford mustangs for all of us.
Sorry to tell you this BK but ATM Ford have absolutely no Plans to export the Mustang.. It’s still going to be a USA only car.. its been designed and built to US Standards to suit US Tastes etc.
Told every redneck here many times, one day Holden will be based on Chinese Brilliance…
http://www.leftlanenews.com/gm.....-2011.html
Who cares?
Noone wants their clumsy products.
I hope Ford go the same way, they have peddled rubbish vehicles for years.
I predict GM to announce bankruptcy by the end of the week. They alredy only a few cents away from being delisted from the Dow Jones index.
already*
Sad1
Well maybe its G.M thats peddles rubbish vehicles to an even larger extent as Ford are NOT bankrupt or keep bludging our hard earnt taxes and owing the U.S Govt. 15 Billon Dollars, Oh hang on, that was yesterday, what is it Today.?!
“Tiss rather “Sad” is in it “Sad1″
Sad1,
Oh, Toyota lost over 7 billion in 3 months, production cuts of 28%…I guess Toyota peddle rubbish also.
Meanwhile Ford lost 1.8 billion, they are making no significant production cuts and gaining Market share in Europe and the US.
Aagain the misinformed strike again!
Adam, Toyotas true loss is actualy 26 billion. In 2008 they recorded an 18 billion profit. Sales of Toyota’s in some countries are down 72%.
To all of the rst of you, if GM enters bankruptcy, it will be chapter 11 which is bankruptcy protection. This gives them a period of time to restructure the company while creditors are not paid and cannot take action to reclaim monies owed or court actiion to wind GM up. It could be for as little as 3 months or as long as GM want or need. They will emerge from the chapter 11 a stronger, leaner and better company. If it happens, none of the overseas operations will be affected. However GM are in the middle of reviewing all overseas operations to see which are viable and which are not.
Adam & EH179 (still reckon they were cool “For Holdens;-) )
It’s good to see that some people actually do have a grasp on what is really happening {not just themselves}. The only real annoying thing about this is that it will allow GM to do what Ford has done but with a lot less pain & effort.
Frontman,
Correct, GM and Crysler in effect will have it easier than Ford filing for Chapter 11 bankruptcy to correct thier current business issues.
Makes you wonder.
The one area GM and Cryselr will struggle compared to Ford is product development and lead times, Ford will release a larger number of newer models faster.
It appears though that Ford is starting to see some effort for the hard work over the last 2 years.
Ford also doesn’t have the stigma of taking federal money to keep thier company operating.
Its all prob just a plan to go into chapeter 11 and just wipe out all there dept and just start again .looks like there been planning it all along
It will probably teach GM and Chrysler a lesson. So it will benefit them in the long run.