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

To: Tenchusatsu who wrote (566871)	5/17/2010 10:22:21 PM
From: bentway	Respond to of 1579893

You left off F's debt of $34 billion.

To: Tenchusatsu who wrote (566871)	5/17/2010 11:10:23 PM
From: i-node	Respond to of 1579893

>> 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. Don't worry, they only owe us $50 B. I would say if the US could settle for 50c/dollar the way they did with Chrysler today, they ought to consider it.

To: Tenchusatsu who wrote (566871)	5/18/2010 12:23:47 AM
From: tejek	Respond to of 1579893

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. So then, GM should have a market cap larger than Ford's. No? 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). Ford is making these profits at a time when car sales are the lowest they've been in 15 years. Annual sales were running around 10 million this past year. Imagine if car sales get back up to 16 million. Ford's and GM's profits should increase significantly in the next two years, allowing for higher stock prices. the same way they value Ford, especially when GM already screwed over its investors and bondholders once. It doesn't work that way. If GM keeps making the right moves, investors won't care what happened in the past. For the first time in 30 years, most of the old players are gone from GM. That, in and of itself, is a relief to investors. Ultimately, GM's IPO later this year will tell us what we want to know.