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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (442439)12/24/2008 2:10:15 PM
From: tejek  Read Replies (1) of 1577194
 
GM is a great example of incompetent capital management.

By Daniel | December 3, 2008

In 2004 GM reported earnings of $4.76 per share and paid a dividend of $2 per share
In 2005 GM reported earnings of -$18.78 per share and paid a dividend of $2 per share (!!)
In 2006 GM reported earnings of -$4.29 per share and paid a dividend of $1 per share (!!)
In 2007 GM reported earnings of -$76.52 per share and paid a dividend of $1 per share (!!!)
In 2008 GM has reported earning of -$37.52 per share in 3 quarters and paid dividends of $0.50 per share

Lessons from this:

1) Never buy shares in a company that is losing money.
2) Don’t trust management that pay dividends with complete disregard for the losses they are incurring
3) Don’t bailout companies that behave this way. You only encourage them.

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