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Discussion Starter · #1 ·
acoording to a report in the New York Times....so says the word on the virtual street. I'd post the article but I don't have the subscription to NYT.
 

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I did a quick look and at the end of Sept 05, the latest published QTR for both companies, and Harley Davidson International's equity was worth 12% of the equity that GM was sporting at that time. GMs stock price has fallen 25% since then. HDI has picked up 12%. No matter how one would spin it, GM is somewhat larger than the MoCo. That is unless you work for Enron
 

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My Harley is worth more money than my GM car and truck together.:sofa: :xhere:
 

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Discussion Starter · #4 ·
rkt88403 said:
My Harley is worth more money than my GM car and truck together.:sofa: :xhere:

Mean it, my bikes are worfth way more than my 97' Grand Marquis beater I keep around for the nasty days. :roflback:
 

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Sprung said:
Mean it, my bikes are worfth way more than my 97' Grand Marquis beater I keep around for the nasty days. :roflback:
My truck is a '95 GMC Sierra 1500. My car is a homebuilt '81 Olds Delta 88 with a '77 403. My bro borrowed my car a few months ago. Ain't returned it yet. He,his wife,and daughter drive Fords,so at least one is broke down at anytime. Damn,I miss my Olds.
At least he rides a Harley.!drunk!
 

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Sprung said:
acoording to a report in the New York Times....so says the word on the virtual street. I'd post the article but I don't have the subscription to NYT.
Thats just the stock market cap, but go compare assets, GM's restrooms are worth more than HDI.
 

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geoffreyt said:
The company is only worth its market cap

Market capitalization is a function of the price of a firm's stock and may not accurately reflect intrinsic value because of varying future expectations held by investors. It is common for a firm's market capitalization to exceed book value.

The total market capitalization of all the companies listed on the New York Stock Exchange is greater than the amount of money in the United States.

I guess that about sums it up.

Prime example, Google has a market cap $128 billion dollars, is it worth that much with a small amount of assets?
 

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:sucks:

Doesn't matter really if HD is worth more per share stock wise than GM. It is no secret that last year both Ford and GM's stock were considered Junk Bond status. If those two companies don't do something to intice people to buy then who knows how long it will be before they go the way of Chrysler.

Personally, I want to see some inovation out of both of them instead of seeing what new SUV they can muster out of their roster or what old car they can try to bring back. How about something new that people want to buy?
 

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Dirty Jim said:
Google has a market cap $128 billion dollars, is it worth that much with a small amount of assets?
I think the short answer is, "probably."

The collective wisdom of the market, which usually exceeds that of any individual (except for possibly insiders), says that the company will generate future earnings high enough to support its current market cap.

The market can certainly get it wrong, but over time, I think it gets it close most of the time.

John
 

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Well, as long as you don't count the entire dot.com era.

JRS said:
I think the short answer is, "probably."

The collective wisdom of the market, which usually exceeds that of any individual (except for possibly insiders), says that the company will generate future earnings high enough to support its current market cap.

The market can certainly get it wrong, but over time, I think it gets it close most of the time.

John
 

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Sprung said:
acoording to a report in the New York Times....so says the word on the virtual street. I'd post the article but I don't have the subscription to NYT.
I am a GM shareholder. Yes, at the time of the article, i'm sure Harley was worth more than GM in "market cap".

But in terms of raw, net assets, no way.

While I believe GM has the capacity to go bankrupt, the probability of the company doing so is pretty remote. They have more than 19 billion dollars in cash, against 500 million dollars in long term debt due in 2006, with an over funded pension fund that returned 13.2% last year. The UAW contracts expire at the end of 2007, and GM has 16 new products scheduled for release in 2006....I believe management will fix these problems and get the company back in the black. Over the last 10 years, GM has earned an average of 5.32 a share...one bad year is not going to sink the company.

Wall street has a nasty habit of making mountains out of mole hills.

In terms of "market cap", I paid an average price of 21 dollars a share x's 565 milion shares for the "business" or...21 x's 565 = 11.865 billion dollars for GM.

Auto stocks, in general are very cyclical, in that they are losing billions at the dirt cheap phase , and they are making more money than they know what to do with, during euphoric booms ( 1999-2000 )

I bought my first Vette for MSRP back in 2000. In 2003 I bought my second vette, a 405hp Z06, for delear invoice. The second car had 65 more hp, was 3 years newer, with a 7 year warranty, yet only 500 bucks more.

Thus, investing in these stocks is somewhat tricky. You want to buy stocks like GM when they are losing billions, and everyone else is anxiously and urgently selling, ( like last month ), and you want to sell when the company is reporting record revenues and the best deals you can get on new models is MSRP. ( 1999-2000 )

In the end, one still has to have faith ( in the cycle ) ....i.e...what goes around, comes around, to be a GM investor.

And that, is virtually the orbit that most DJIA stocks are constantly on...dirt cheap, fairly valued, expensive, greater fool theory top, collapse, denial, panic, dirt cheap....here we go again.

Nazz
 

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Listen to Nazzdak...he is making sense. Right now GM is a chance to buy a share of the assets of a huge corporation at almost pennies on the dollar. Read this month's issue of Forbes magazine...they make the same points basically.

One does not make money in the stock market buying high and selling low. You buy low and sell high. But when a stock gets low (and GM is ridiculously low right now) people are afraid to buy and ready to sell. That is why they do not make any money. Buy GM today and earn 10% on your investment in dividend return, (even if they cut the dividend by 50% it is still a 5% return!) and when the low is passed and GM goes back up, smile, because you were smart enough to buy low. Never follow the herd...

I've got some of my money where my mouth is here, at these prices I just could not resist.
 

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Dirty Jim said:
Market capitalization is a function of the price of a firm's stock and may not accurately reflect intrinsic value because of varying future expectations held by investors. It is common for a firm's market capitalization to exceed book value.

The total market capitalization of all the companies listed on the New York Stock Exchange is greater than the amount of money in the United States.

I guess that about sums it up.

Prime example, Google has a market cap $128 billion dollars, is it worth that much with a small amount of assets?

I always thought something was worth what you could sell it for. Accountants will tell you anything you want to hear but if no one is willing to fork over the dough, its all academic, isnt it?
 
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