General Motors Valuation:
(Put into spreadsheet)
1) GM will retain 35% ownership of GMH
Reference: 3/10/2000 Value Line by Scott T. Falzone
GMH stake currently 68%
Reference: 4/2000 issue of "Worth"; pg.120-121
Michael Price's 12-month pick
2) $2.00 dividend
Yield: $2.00/$85.00 = 2.3% yield
3) Anticipated eps (per Value Line):
2000: $9.20
2001: $10.40
4) General Motors Acceptance Corporation (GMAC) = $18/share
Reference: Michael Price in 4/2000 "Worth"
5) End of 1999: GM's stake in GMH = $28 Billion, equal to
$46 for each existing GM share
Reference: 4/2000 "Worth"
6) $14.4 Billion in Cash ($13/share)
Reference 4/2000 "Worth"
7) 100 manufacturing facilities, real estate, 14,500 car
dealers; brand names like Chevrolet, Oldsmobile, and
Cadillac; and the relatively new Saturn division.
Reference 4/2000 "Worth"
8) GM Price Per Share: $85
GM's Market Capitalization = $52,681,000,000
GMH Price Per Share: $130
GMH's Market Capitalization = $17,924,000,000
GM's 68% ownership of GMH = $12,188,320,000
GM's 35% ownership of GMH = $ 6,273,400,000
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