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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (566845)	5/17/2010 8:59:19 PM
From: Tenchusatsu	Read Replies (3) \| Respond to of 1579883

Ted, > At today's stock price, Ford is worth $41 billion and F is still smaller than GM. Ford makes about $125B a year in revenue, which translates to annual earnings (EBITDA) of $10B, or $6B available to common shareholders. P/E ratio of F is 7, leading to the market cap of $41B. The newly downsized GM will likely make about $140B a year in revenue. GM had to struggle to get to $1B in profit last quarter, and it isn't clear that it's going to get much better. Maybe GM too will get to annual profits of $10B EBITDA, but that would be quite a miracle, especially with the unions asking for theirs once again. > And let me add, F's stock price is projectd to reach $20 in the next year. At $20, the company would be worth $68 billion. Ford would either have to increase profits by a significant margin, or its P/E ratio would have to rise to a level above that of Toyota (P/E ratio of 8, last time I checked). You're dreaming if you think investors are going to value GM the same way they value Ford, especially when GM already screwed over its investors and bondholders once. Tenchusatsu