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GM to go bankrupt?

Discussion in 'Fred's House of Pancakes' started by Wolfman, Mar 24, 2005.

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  1. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    So if I understand the article correctly, it is better to have profits than market share. And yet GM is the largest automobile manufacturer with falling profits but remains "the heartbeat of America". I don't get it.

    And if I had to choose, I'd rather humbly break even than lose money. Better if I can break even while increasing market share.

    I think it's difficult for Americans to understand the Japanese mindset. Our corporations are driven by shareholders who are interestedonly in stock price and bail at the first hint of instability. Toyota, on the other hand, makes quality products, returns an average stock price, and keeps cash on hand in the event they need it. As I said, Americans find it difficult to understand common sense.
     
    #21 TonyPSchaefer, Mar 27, 2005
  2. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    the valuation of stock where the P/E ratio is very high only means the company has the investor's best interests in mind. a low P/E (price to earnings ratio) may mean a riskier stock for the investor but in a strong company with ever rising sales and a good reputation, it also means that the company favors the customer over the investor and that is what I AM LOOKING FOR.

    i dont care about Toyota stock, i do care about what i am driving. knowing that i am buying from a company that doesnt base all their decisions on whether it will make their shareholders happy gives me a much better sense of security than going with a company that has a higher P/E, declining sales and a piss-poor reputation.

    that fact that Toyota rolls nearly 50% of their profits back into R&D obviously irks the investor looking for a big dividend or large company buy back of stock (this is done to either increase the price of stock or too prevent excessive dilution in the case of a planned stock split)
     
    #22 DaveinOlyWA, Mar 27, 2005
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