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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (7781)	10/28/2003 9:58:21 AM
From: BWAC	Read Replies (1) \| Respond to of 25522

<GM's high debt to equity ratio of 22+.> GM is a bank. And a car maker on the side.

To: Proud_Infidel who wrote (7781)	10/28/2003 10:04:37 AM
From: robert b furman	Read Replies (1) \| Respond to of 25522

Hi Brian, Not real sure on that. I do know they took on 13 billion loan at bottom of rate drop to bolster unfunded pension liability. They are the only ones who are even close to bridging the gap. Their debt will be upgraded when they get that behind them thus the slow sell off of EDS and GM hughes and IPO of Delphi. Thei will leave GM with worldwide production facilities and a dominance in the North American market luxury cars and full size truck market - only markets that give an ROI. The rest they'll import and rebadge entire vehicle or at least the major components. That will leave them with a huge Mortgage business(that they fund not resell) and a very large and conservative car finance operation. When the pension liability is fully fiunded it will differentiate their bonds from the others. At that magical moment their cost of funds will be below their competition.Knowing GM as I do - they won't use that as a market share tool - they'll simply have a higher yiel on the loan portfolio and should do the stock holders/ dividend recipients quite well. A very slow moving large manufacturer that is doing quite well executing a very long term plan.Probably is a double bagger in the long term. Not bad compared to Ford which may noy make the trip.I'm thinking it could be a great use of Msft's money???? Bob P.S. Market running away nicely here??