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General Motors General Motors Company, also known as GM, is a United States based automaker with headquarters in Detroit, Michigan.
By sales, GM ranked as the largest U.S. automaker and the world’s second largest for 2008. GM had the third highest 2008 global revenues among automakers on the Fortune Global 500. GM manufactures cars and trucks in 34 countries, recently employed 244,500 people around the world, and sells and services vehicles in some 140 countries.
On June 1, 2009 General Motors filed for Chapter 11 bankruptcy proceedings from which it emerged on July 10, 2009 in a reorganization in which a new entity acquired the most valuable assets. GM is temporarily majority owned by the United States Treasury and to a smaller extent the Canadian government, with the US government investing a total of US$57.6 billion under the Troubled Asset Relief Program.
While no GM shares are currently available to the public, the company plans an initial public stock offering (IPO) in 2010.
GM plans to focus its business on its four core US brands — Chevrolet, Cadillac, Buick, and GMC. In Europe, following a period of negotiation to sell a majority stake in its Opel and Vauxhall brands, GM decided to retain full ownership of these operations.
On January 26, GM announced that it had reached an agreement to sell SAAB to Spyker Cars NV. GM also has an agreement to sell its Hummer brand, awaiting Chinese regulatory approval, while winding down its Pontiac and Saturn brands as they remain under the old GM, now known as Motors Liquidation Company. (Wikipedia Jan 2010)
Smooth sailing unlikely
By John Schroy, on May 20th, 2010 | 
Markets can be inefficient for different reasons and persist for long periods. The transition between one type of inefficient market to the next is usually a period of strife and uncertainty which may last five to fifteen years. Looking back at how the economy emerged from previous transitions, I note that in each new period, equity prices started at reasonable levels. This was true at the beginning of the Roaring Twenties, the Post WW II Period, and the Reagan Era. It is as if markets, recognizing prior inefficiencies ‘reset’ and start over. However, for the current market to ‘reset’, it will be necessary for equity prices to fall considerably, which will have dire consequences.
Q3 2009
By John Schroy, on February 22nd, 2010 | 
In Q3 2009, American households saved 4% of their income, a sharp increase from 1.5% in 2007 before the current financial crisis. Tax breaks in the “economic stimulus” package were directed to savings rather than consumption.
Private sector tax payers were incensed by the profligate behavior of the Pelosi-Reid Congress, which gave rise to the Tea Party Movement.
Post Modern Security Analysis
By John Schroy, on August 19th, 2009 | 
‘Corporate governance’ is a buzz-word that came into vogue as employee-executives were able to wrest control of public corporations from the real owners, long-term investors.
Misuse of stock buybacks, excessive executive remuneration, and conflicts of interests are issues that security analysts must now study.
The analyst’s question should be, ‘Which stakeholders control the company?’ and ‘Are their interests the same as those of investors?’
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