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Originally Posted by MisterCamaro69
So... here's the deal. You're in control of half a billion dollars and you're considering investing in GM's IPO.
Do you say.. "hmm, $33.00 sounds fair, let's do it!" Of course not! You have a room full of some of the brightest minds in accounting and trading poring over GM information to estimate the value of the shares.
You don't just throw around hundreds of millions of dollars on a whim. and please no BS government spending comments.
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I love this argument. If you don't think major firms make incredibly stupid decisions on a surprisingly regular basis I have some ocean-front property for sale in Wyoming. The fact that what was once the largest corporation in the world could actually go broke within the course of a few decades is proof enough of that. Or, do you think first class decision making led to that?
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Originally Posted by DGthe3
proof?
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The only news source I know of that has openly picked up on what I have is actually one of the better IPO sites on the Web.
http://www.gaskinsco.com/linkto-gm3.shtml
Here they do some simple comparisons between what GM has reported and what Ford has reported on their respective financial statements. Ford and GM have roughly similar overall sales, Ford has shown more profit than GM which should find them an even higher percentage of taxes, but despite the fact that GM owes no Federal taxes to the U.S government they show a 33% tax debt for the first quarter of the year. Ford who actually does owe the U.S. govt taxes, only shows a 2% tax debt despite making more money. You can't even begin to remotely account for that with international taxes so, why would GM show so much tax debt on a quarterly statement?
I can tell you that GM used deferred tax credits to hide losses in 2007, a move which led to the thermo-nuclear loss they posted in the third quarter of 2007. Now, I'm not making any accusations here....but if it looks like a duck, walks like a duck, and quacks like a duck. Well, you get the picture.
