Ford & GM Post Losses

[Ron61]

Even larger losses than had been predicted, but it is also really hitting all other Automobile Companies as well. It could soon be a good time to buy stock in these companies as I feel they will survive, but maybe not as we have known them.

http://www.reuters.com/article/busin...e=businessNews

Ron

[cobra de capell]

Well, lucky for me my investment in Ford matures later this month, on the down side - it's generated 8% since 2005 and now that will be gone.

My GMAC investment has three years to go - YIKES!

[mdmull]

I am incapable of understanding how Ford can lose 129 million in the quarter but use up 7 BILLION in cash???

[cobra de capell]

Originally Posted by mdmull

I am incapable of understanding how Ford can lose 129 million in the quarter but use up 7 BILLION in cash???

Here's how........make a lot of cars that no one can buy or will buy; add those cars to the balance sheet as 'assets' by transferring 'cash' assets to 'inventory' assets. The use of 'cash' assets (including investment assets) for inventory can be a good thing if that inventory can be sold within a reasonible time. In this case, using billions in 'cash' assets to cover a building inventory that is selling slow and not making a bottomline profit is a recipe for disaster. When 'cash' is used up, you are basically toast unless someone comes in with more 'cash' in the form of additional stock, etc.

[stuartb]

don't buy either ford or gm stock, if you must own them buy the bonds. This is because the bond guys are controlling the price of the stock, and if they do go under the if you own the bonds you are first in line to collect if you own the stock so sorry you get nothing.

[cobra de capell]

I have the bonds, not the stock - but, bonds will go down if they go down - first in line for nothing is nothing.