Thursday December 4, 2008 Navivest

General Motors (GM), Ford (F) and Chrysler executives will today, be back in front of Congress, which will be holding hearings on the $34 billion in aid that the automakers are seeking from the government.

The automakers will be presenting their plans on how they plan to use the money, in response to a congressional request that they produce such business plans within ten days of their November 18th appearance before Congress.

In a press conference yesterday, Speaker of the House, Nancy Pelosi came out in full support of a bailout for the automakers, by stating that bankruptcy was not an option. She also said that if the plan from the automakers that was not sufficient, then congress would tell them what congress wants in order to be able to provide aid.

So it does seem help is on the way and as such, we reiterate our

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Eric Roseman says none of the “big three” automakers deserves a bailout. Even if they get one, it will only delay their inevitable bankruptcy. Letting Detroit go under will be painful. But Eric says that is better than wasting more taxpayers’ money. And it could help restore some confidence among investors.

This from Sovereign Society:

With the auto industry now the “bailout flavor of the month” in November, investors are fretting over the possible demise of one or possibly all three U.S. automobile manufacturers. The Big Three have seen their respective stock prices virtually annihilated in the last few months, with General Motors (NYSE:GM) trading at the same nominal price as during the Great Depression.

Conservatives in Washington are balking at an auto industry bailout and investors are worried that any delay in helping Detroit will result in the collapse of the industry, hundreds of thousands of jobs and the

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General Motors (NYSE:GM) just doesn't get it, check out their new 2009 Hummers, cut & pasted right from their website, aren't those prices just lovely, how about the ...

If you thought the earnings report released this morning by Ford (NYSE:F) was scary, you had better be sitting near a trashcan to hear the news from its cross-town rival, General Motors (NYSE:GM). These figures will make you nauseous.

Really, just one quote from the company says it all.

“Even if GM implements the planned operating actions that are substantially within its control,” the report says, “GM’s estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business.”

The company goes on to say it will take a significant economic turnaround, strong proceeds from an asset sale, and/or government intervention for even a chance at having the cash flow it needs to survive through next year.

It does not look good for the nation’s manufacturing gem.

The Big Three ain’t so big

Just take a look at some of the numbers from the automaker. During the last three

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Thursday October 30, 2008 Navivest

The U.S. Commerce Department today, put out a report that showed the Gross Domestic Product or GDP, contracted at an annualized rate of 0.3%. Economists were looking for a rise of 0.3%.

The GDP which is the broadest measure of a nation’s economy, is the sum total of all the goods and services that a country produces. As such, a shrinking GDP means we are producing fewer goods and services, which would then mean less people employed, and all the other negative economic implications that come with that.

The number should not entirely be a surprise. Employment is already at 6.1% a 0.7% jump in September, from the 5.4% August 2008 rate. Consumer sentiment for October 2008 showed a reading of 57.5, a steep drop from the September reading of 70.3. Forecasters had been looking for the number to come in at 64.5.

Furthermore, major corporations have

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Tuesday October 28, 2008 Navivest

Embattled auto companies General Motors (GM) and Chrysler, got more bad news yesterday, after Moodys cut its ratings on both companies. GM (GM) and Chrysler are now rated Caa2, eight levels below investment grade. In other words, Moody’s ranks them deep in junk territory.

In a statement regarding the ratings cut, Moodys stated that “despite all of GM’s business restructuring and liquidity-raising efforts to date, the magnitude of cash outflows due to ongoing operating losses, debt repayments and other uses will consume the company’s available cash during 2009.”

Moodys also said that GM’s (GM) overall credit quality is eroding more rapidly than previously expected, in the face of weakening business conditions and rapidly depleting liquidity.

General Motors (GM), which currently has $21 billion in cash, is burning through a billion dollars a month. The company is also in merger talks with Chrysler and both companies are in

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A Short Transport ETF Strategy for the Global Slowdown Given the global economic slowdown, lower commodity prices, and cool-down in former red-hot grow markets such as China; the accompanying table presents statistics and an overview of a global transport short ETF strategy for passenger airlines, auto makers, maritime, and trucking companies. While I am still bullish on the prospects for railroads as a long investment idea and a hedge to these short transport ETF ideas, they will also suffer to some degree depending on the length and depth of the slowdown. However, the railroad industry is more fuel efficient than trucking, is not plagued by overcapacity, and also enjoys pricing power as there is a limited amount of railroad track and little ...

Market conditions have recently looked promising for investors looking to get into a blue chip stock at deeply discounted rates. GM stock took a massive beating last week, closing at a 50 year low of $4.89 on October 10th. Forecasts portraying the future sales automobiles show a significant decline in sales due to the difficulties for consumers to obtain credit for purchase. Incentives by the auto industry have increased demand, but the problem of credit remains. While panic gripped the exchange last week, this morning seems to be showing a bit of that silver lining. The larger question to ask is: Is now the right time to jump into GM?

Speaking on condition of anonymity, executives at GM and Chrysler have both indicated that the market is ripe for such a consolidation. Auto manufacturers such as GM, Chrysler, and Ford could benefit from such a merger. Decreased costs would cut

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My last post was about China auto sales and here is another news story that I was shocked to see: General Motors and Chrysler are considering a merger?  I know the auto business is tough but I doubt that the marriage of two trouble companies would make things any better. You'd just end of with one mega-sized company in trouble instead of two companies in trouble.

My last post was about China auto sales and here is another news story that I was shocked to see: General Motors and Chrysler are considering a merger?  I know the auto business is tough but I doubt that the marriage of two trouble companies would make things any better. You'd just end of with one mega-sized company in trouble instead of two companies in trouble.