GM and Ford STOCK now rated as "Junk"

**airshaq20** · May 6th, 2005 11:55 AM

Link:

http://biz.yahoo.com/ap/050505/autom...ngs.html?.v=10

**empy** · May 7th, 2005 12:14 AM

small correction sir, it's their credit (debt) rating that was cut to high-yield, or 'junk' status - not their stock. in other words, S&P is saying that GM and Ford are now riskier to lend money to, so you should charge them more interest. ;)

their stock isn't doing all that well either because of this and other reasons, but depending on what you believe, they could be a good buy-low target right now.

**kuroy** · May 7th, 2005 08:15 AM

speaking of stock ng gm tumaas yatang bigla ng mukhang magiging majority owner si kirkorean ba yun...yung billionaire businessman

**badkuk** · May 7th, 2005 09:58 AM

one other problem they have is with the worker's union; i.e. they're getting saddled with "legacy" costs -- pension, benefits ng retired workers -- as well as very restrictive CBA terms(bawal daw magsara ng plant ung GM, and all plants should operate at at least 80% capacity).

hopefully with a little belt-tightening, makakaraos sila sa short term. but they have to solve their most fundamental problem -- i.e. no one's buying their cars.