GM Posts Big 2Q Earnings, but Can't Get Any Respect

ChasC5 · 08-08-2011, 7:14am

You have to wonder what's going through the minds of executives at General Motors.

After posting far better than expected earnings in the second quarter, and having the company in its best position in years investors are shrugging their shoulders and saying, "so what?"

Today, GM beat the street earning $1.54 a share vs. $120 estimate. Revenue was better than consensus $39.4 billion vs. the street estimate of $36.73 billion. And for the first time in a long time GM is profitable in all regions of the world. It is not only the best quarter GM has posted since coming out of bankruptcy, but also for the company overall in years.

To quote GM CFO Dan Ammann, "We had a significant increase in global market share. We have been able to get significant improvements in price, much lower incentives and that price/ incentive and share combination is really what has driven the result this quarter."

Still, GM's not getting much respect from investors. The stock languishes around $27 a share, well below its IPO price of $33. Yes, the overall market stall has pulled all stocks down, but there's a sentiment issue weighing on GM. Some investors are still wondering if GM can sustain success. When I bring this up to people on Wall Street they shake their head and say at some point people will wake up to the fact this is a different GM.

Against this backdrop, GM executives feel they have their business lined up to succeed long term. The product portfolio, after going through a dip, is moving towards being more complete. The European operation, a long time troubling and money losing business, is finally back in the black. And with auto liquidity standing at $39 billion, GM has more financial flexibility than in the past.

There are many who are hesitant to invest in GM, or buy into its turnaround until the US government sells its remaining stake. Is that the only reason GM shares are languishing? No. Concerns about the broader economy are also a factor. But, get beyond both of those, and you have to wonder when investors will give GM credit for posting solid results.

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RedLS1GTO · 08-08-2011, 7:22am

Hmmmmm.... so people are hesitant to buy into a company that cost it's investors billions of dollars just 2 years ago.

Never would have guessed that would happen.

ChasC5 · 08-08-2011, 7:25am

Quote:

Originally Posted by RedLS1GTO

Hmmmmm.... so people are hesitant to buy into a company that cost it's investors billions of dollars just 2 years ago.

Never would have guessed that would happen.

Chances of me buying into GM ever again = 0.

So I can assume you don’t put your money in Banks.

BTW; Welcome to the VETTE BARN.

RedLS1GTO · 08-08-2011, 7:26am

Quote:

Originally Posted by ChasC5

So I can assume you don’t put your money in Banks.

BTW; Welcome to the VETTE BARN.

WTF are you talking about?

ChasC5 · 08-08-2011, 7:29am

Quote:

Originally Posted by RedLS1GTO

WTF are you talking about?

Ever hear the old saying; if you don’t know, maybe you should ask someone.

Where have investors placed more of their money bailout money?

RedLS1GTO · 08-08-2011, 7:35am

Quote:

Originally Posted by ChasC5

Ever hear the old saying; if you don’t know, maybe you should ask someone.

Where have investors placed more of their money bailout money?

So you jumped from GM and it's investors losing billions and being hesitant to buy back in to banks?

The fact that you can't even stay on your own topic for more than 1 post is amusing.

...and the WTF comment was directed at this:

Quote:

BTW; Welcome to the VETTE BARN.

Was that some sort of joke, or just another of your random off the wall comments that has some meaning that only you understand?

Exotix · 08-08-2011, 7:36am

All the parts are made in Mexico, China and Canada and assembled by American slaves ... yes ? no ?

RedLS1GTO · 08-08-2011, 7:39am

Quote:

Originally Posted by Exotix

...and assembled by American slaves ... yes ? no ?

So how much does the average GM "slave" make these days?

ChasC5 · 08-08-2011, 7:43am

Quote:

Originally Posted by RedLS1GTO

So how much does the average GM "slave" make these days?

The only person I know who works at GM is an Engine Designer who worked for GM for 25 years.

He does quite well as most 25 year engineering veterans.

Exotix · 08-08-2011, 7:44am

Quote:

Originally Posted by RedLS1GTO

So how much does the average GM "slave" make these days?

That's the point ... you can make $100 an hour and get nowhere in life here in America ... as opposed to other countries where 5 cents an hour means you're above poverty level and that's great ...

RedLS1GTO · 08-08-2011, 7:58am

Quote:

Originally Posted by Exotix

That's the point ... you can make $100 an hour and get nowhere in life here in America ... as opposed to other countries where 5 cents an hour means you're above poverty level and that's great ...

What in the hell are you even talking about?

How does any of that equate to GM using slave labor in your mind? Better yet... what does any of that have to do with GM stock prices?

ChasC5 · 08-08-2011, 8:00am

Quote:

Originally Posted by RedLS1GTO

What in the hell are you even talking about?

How does any of that equate to GM using slave labor in your mind? Better yet... what does any of that have to do with GM stock prices?

Please post a link so that I can study your claim for General Motors using Slave labor.

Exotix · 08-08-2011, 8:06am

Quote:

Originally Posted by RedLS1GTO

What in the hell are you even talking about?

How does any of that equate to GM using slave labor in your mind? Better yet... what does any of that have to do with GM stock prices?

Well that's why I posed my inquiry in a question ... goes to investor confidence ... why would investors even pose the question ?

Perhaps right-wing corvette owners are still in shock because referring to their vettes as socialist govt. motors hasn't changed anything ?

RedLS1GTO · 08-08-2011, 8:06am

Quote:

Originally Posted by ChasC5

Please post a link so that I can study your claim for General Motors using Slave labor.

Pay attention and sound out the big words. I was referring to this post made by your liberal friend. HE is the one that made the dumbass statement they were using "slave" labor.

Quote:

Originally Posted by Exotix

All the parts are made in Mexico, China and Canada and assembled by American slaves ... yes ? no ?

RedLS1GTO · 08-08-2011, 8:08am

Quote:

Originally Posted by Exotix

Well that's why I posed my inquiry in a question ... goes to investor confidence ... why would investors even pose the question ?

Perhaps right-wing corvette owners are still in shock because referring to their vettes as socialist govt. motors hasn't changed anything ?

... and the word "slaves" fits in this how?

ChasC5 · 08-08-2011, 8:09am

Quote:

Originally Posted by Exotix

Well that's why I posed my inquiry in a question ... goes to investor confidence ... why would investors even pose the question ?

Perhaps right-wing corvette owners are still in shock because referring to their vettes as socialist govt. motors hasn't changed anything ?

Exotix · 08-08-2011, 8:09am

Quote:

Originally Posted by RedLS1GTO

... and the word "slaves" fits in this how?

Again don't know ... ask Bush & Cheney and all the neocons why ... (Bush Tax Cuts that were to make the (R) Party permanent ... )

ChasC5 · 08-08-2011, 8:11am

Quote:

Originally Posted by Exotix

Again don't know ... ask Bush & Cheney and all the neocons why ...

Maye they don't want to touch that Tar-baby

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