Great podcast featuring a GM "bear" (a financial market bear or short is sombody who's negative on a company's situation and/or company stock & debt (They may/ or may not have financials bets against stated company stock and/or debt).
I highly recommend everybody to listen to the Seeking Alpha podcast (especially the 13:00-28:00 minute part) with the GM bear Blue Pacific
: Blue Pacific points about GM are:
*GM's balance sheet will crossover to "net debt" very soon (the very same Net Debt FCA worked so hard to get rid of) especially generated by the failed $15 billion GM Stock Buyback program.
*He mention that GM Truck sales are the only one ( out of the three) who hasn't recover from the pre-recession time period
*RAM is the only Big Marketshare gainer in Trucks while F-Series share is flat, leaving GM as the loser
* Fiat Chrysler has added RAM truck capacity that's have to find a home, and that home is at GM's expense
*GM Pickup trucks are a "Botched" redesign done poorly by management
*GM Cash generation after Product spending (but before Pension contributions) was guided to $5 billion in 2018, but the majority of the $5 billion comes from the Chinese Joint Venture especially the Special $2.5 billion divided from the Joint Venture
*Exculding China, a 5% GM drop Pickup Truck volume (cause by either RAM, or the market overall) would wipeout any cash generation with current Product Spending levels.
*China is and especially vehicle sales are weakening, which again hurt the ability for JV's to payout dividends.
*Because of the above issues,GM with current version product spending levels won't be able to payout the common stock dividend of nearly $2.3 billion annually without significant increase into Net Debt, and/or additional borrowings.
* GM's CFO and Chief Accountant left the Company.
My note the note of the CFO and Chief Accountant leaving, if this actions was about FCA, some in the Detroit/Automotive media would be trashing FCA making up rumor garbage about FCA's finances, especially Larry of Automotive News. In fact the same Detroit/Automotive media instead of having curiosity about reason as to the why of the exits was hyping up the announcement with "GM First Ever female Chief Financial Officer".
In addition GM actually did pay a fine to the SEC regarding misleading statements regarding the Ignition Switch recall cost.
Back to the podcast, the GM bear made several points about the GM's self driving technology, one of it being as a " media distraction by GM Management to avoid discussing " Botched" Silverado & Sierra redesign, and GM Management left out the factors in the SoftBank/Honda deals with GM Self Driving technology some of which are if technology milestones are not meet by GM,then SoftBank/Honda get refunded their investments in full by GM.
The GM bear basically repeated the opinions of John Elkann & the Late Great Sergio on how inferior/unproven GM's Self-Driving is. One note I will make about this GM bear is he's of auto companies as investments period, and bring up a lot of "the Pickup truck pricing topic" that "the other mopar website" brings up regarding RAM/Wrangler pricing and what would happen in any recession .
He thinks simply GM would be by far the worst of the traditional American three in handling with worst products,management and balance sheet with the drag of having big Net Debt.
So maybe a good nickname is "Net Debt Mary" with her about to suffer "RAMAGEDDON".
I highly recommend everybody to listen to the Seeking Alpha podcast (especially the 13:00-28:00 minute part) with the GM bear Blue Pacific
: Blue Pacific points about GM are:
*GM's balance sheet will crossover to "net debt" very soon (the very same Net Debt FCA worked so hard to get rid of) especially generated by the failed $15 billion GM Stock Buyback program.
*He mention that GM Truck sales are the only one ( out of the three) who hasn't recover from the pre-recession time period
*RAM is the only Big Marketshare gainer in Trucks while F-Series share is flat, leaving GM as the loser
* Fiat Chrysler has added RAM truck capacity that's have to find a home, and that home is at GM's expense
*GM Pickup trucks are a "Botched" redesign done poorly by management
*GM Cash generation after Product spending (but before Pension contributions) was guided to $5 billion in 2018, but the majority of the $5 billion comes from the Chinese Joint Venture especially the Special $2.5 billion divided from the Joint Venture
*Exculding China, a 5% GM drop Pickup Truck volume (cause by either RAM, or the market overall) would wipeout any cash generation with current Product Spending levels.
*China is and especially vehicle sales are weakening, which again hurt the ability for JV's to payout dividends.
*Because of the above issues,GM with current version product spending levels won't be able to payout the common stock dividend of nearly $2.3 billion annually without significant increase into Net Debt, and/or additional borrowings.
* GM's CFO and Chief Accountant left the Company.
My note the note of the CFO and Chief Accountant leaving, if this actions was about FCA, some in the Detroit/Automotive media would be trashing FCA making up rumor garbage about FCA's finances, especially Larry of Automotive News. In fact the same Detroit/Automotive media instead of having curiosity about reason as to the why of the exits was hyping up the announcement with "GM First Ever female Chief Financial Officer".
In addition GM actually did pay a fine to the SEC regarding misleading statements regarding the Ignition Switch recall cost.
Back to the podcast, the GM bear made several points about the GM's self driving technology, one of it being as a " media distraction by GM Management to avoid discussing " Botched" Silverado & Sierra redesign, and GM Management left out the factors in the SoftBank/Honda deals with GM Self Driving technology some of which are if technology milestones are not meet by GM,then SoftBank/Honda get refunded their investments in full by GM.
The GM bear basically repeated the opinions of John Elkann & the Late Great Sergio on how inferior/unproven GM's Self-Driving is. One note I will make about this GM bear is he's of auto companies as investments period, and bring up a lot of "the Pickup truck pricing topic" that "the other mopar website" brings up regarding RAM/Wrangler pricing and what would happen in any recession .
He thinks simply GM would be by far the worst of the traditional American three in handling with worst products,management and balance sheet with the drag of having big Net Debt.
So maybe a good nickname is "Net Debt Mary" with her about to suffer "RAMAGEDDON".
