ANSWERS: 1
  • <h4 class="dechead">On One Hand: GM Could Rebound

    After a long string of poor business decisions, General Motors Corp. saw its stock price sink significantly. Since receiving a government bailout, though, the company has shown some promising signs of a comeback. A much anticipated electric car, the Chevy Volt, a restructuring program that dumped underperforming divisions and major changes at the remaining GM subsidiaries could make the company's stock prices rise in value, according to both a Time magazine story and American Public Radio's Marketplace.

    On the Other: Experts Say Otherwise

    Though General Motors may have some bright prospects, financial experts at The Motley Fool reiterate that the company's stock will likely remain worthless. Analysts point out that the federal government owns a large number of shares in GM, but eventually will release those shares to the public. When this release occurs, the sudden availability of millions of shares likely will dilute any remaining value and drive stock price close to zero.

    Bottom Line

    Though GM may appear to be on the verge of a recovery, and stock prices could potentially rebound, the company's stock likely will not increase in value in the foreseeable future.

    Source:

    American Public Radio / Marketplace: Buy GM?

    Time: Can GM Recover?

    The Motley Fool: GM - This Stock is Worthless

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