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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (553)	4/23/2003 11:02:22 PM
From: i-node	Read Replies (1) \| Respond to of 3386

No actually what you had was GM converting "long term"payables into debt instruments. So in event of a BK. Their "long term payables" which would be lost in a formal reorg, were converted to debt. What in hell would you expect? Hell, I've done it a million times myself. A customer owes me money, can't pay, the first thing I do is put it on a note. All GM was doing is saying, "hell, if you're not going to pay now, we'd like a little collateral before we advance more money". GM would have been stupid not to do this. Hardly a big deal; it is done every day and is part of the business of finance. You try to make out as thought it is some kind of under-the-table trickery. You forget GM is in the financing business. know they are in trouble when your vendors start converting unsecured paybales into debt instruments. If the can pick up some warrants in the process.. This is utter nonsense. No finance person worth his salt would wait until a business was "in trouble" to get the debt secured. In the first place, most of the financing was just a swap of debentures for zeros. The balance just had a conversion option added to entice GM to advance more money. Which is exactly what the stockholders want (rather than dilution). I get the idea you don't understand anything about these issues. Do you have the slightest understanding of financial statements or the way finance is done? It seems like you come here with no understanding of this particular business, but instead, basing your expectations on other businesses that you apparently have had bad experiences with (if you've had bad experiences with them, perhaps you should have learned something -- LIKE DO YOUR HOMEWORK INSTEAD OF GUESSING WHAT THE HELL IS GOING ON!). Recapture is measured in YEARS Clueless. The period required to recover these costs is a function of what the costs are and how many subs you get. You're thinking in terms of thousands of subs and everyone else is thinking in millions and tens of millions. You continue to come here trying to post with authority but you clearly have very limited knowledge of the subject.