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Car Forum / GMC Cars / December 2005GM hedge funds
warning... GM invested two billion in hedge funds to test the hedge fund market. and now they are considering investing billions more. their 90 billion pension fund in investments is less than a seven % return on the dollars. which they need to replenish the funds pension outlay.and keep it afloat. the fund is staring to feel the pinch. because of low interest rates, and market conditions. but hedge funds are the highest type of risk for any investor, unless they have their own printing press,... gm management should forget about the hedge fund investing.. those funds are not regulated at all, by any government body. the commission fees run 2% plus 20% of any profits that may arise. If Gm thinks they got problems now, wait and see what will happen to the gm pension fund if they start investing in hedge funds... at the end of the day gm retirees and future retirees if there are any left can kiss their pensions goodbye.. Nice lot of BS here. Proof that GM is betting the farm on very risky investments is where? I don't think you are aware that GM want to continue selling cars, they do NOT want to file Chapter 11, thay DO control the automotive market no matter what your opinion is, they will survive as we know them, the pension fund is safe! What the hell does a Canadian know about it anyway? > warning... > [quoted text clipped - 22 lines] > at the end of the day gm retirees and future retirees if there are any > left can kiss their pensions goodbye.. Just ask gm were the pension funds are invested then you are in for a surprise... >Nice lot of BS here. Proof that GM is betting the farm on very risky >investments is where? [quoted text clipped - 30 lines] >> at the end of the day gm retirees and future retirees if there are any >> left can kiss their pensions goodbye.. Yes, GM deals in hedge funds. http://www.hedgefundsworld.com/Tmpl/Article.aspx?ID=21616 > Nice lot of BS here. Proof that GM is betting the farm on very risky > investments is where? [quoted text clipped - 3 lines] > pension fund is safe! What the hell does a Canadian know about it > anyway? You must be living on Fantasy Island. John >> Nice lot of BS here. Proof that GM is betting the farm on very risky >> investments is where? [quoted text clipped - 7 lines] > > John Must be since most of the financial guys that study the books of companies are quite worried. Probably more a denial thing, actually. GM isn't beyond hope. All they need to do is figure out how to pay off ~278 billion dollars in debt with the ~18 billion dollars they have in the bank while loosing an additional 6 billion dollars a year. Should be a piece of cake! ;-) > Must be since most of the financial guys that study the books of companies > are quite worried. Probably more a denial thing, actually. GM isn't > beyond hope. All they need to do is figure out how to pay off ~278 > billion dollars in debt with the ~18 billion dollars they have in the bank > while loosing an additional 6 billion dollars a year. Should be a piece > of cake! ;-) James, I am a "financial guy" and I'm puzzled by your debt figure, as well as your 18 billion dollar figure. I just visited GM's site and pulled off their SEC Filings. I'll post their Condensed Balance Sheet for September 30, 2005, below. You will note therein that GM had "Total Debt" of $ 446 Billion at that time. But the most important figure is the company's "Current Debt", which was recorded at $ 74.7Billion. Now if you take a look at the Assets, you will see "Current Assets" of $ 53.8Billion. To this, you have to add the Current Assets of Financing and Insurance Operations, which look like this: Cash & Cash Equivalents $ 21.4Billion Investments in Securities 16.5Billion Finance Receivables - Net 177.0Billion Loans Held For Sale 17.6Billion Assets Held For Sale 18.7Billion ------------------- Current Assets of $ 251.2Billion Financing & Ins. Ops. Now James, if we add this figure to the $ 53.8Billion figure above, we find that as at September 30, 2005, GM had Total Current Assets of $ 305Billion, which would quite easily handle their Current Debt, which was $ 74.7 Billion. I fail to see the liquidity crisis you seem to allude to. Even if GM had a temporary liquidity problem at some point, they could raise Billions of dollars quite quickly by leveraging up some of their Fixed Assets, which I'm sure would have substantial value over Book Value. So let's not get out the shovels to bury GM just yet. Her demise is highly exaggerated and the funeral wake is premature. GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (As restated, see Note 1) Sept. 30, Sept. 30, 2005 Dec. 31, 2004 (Unaudited) 2004 (Unaudited) ---------- -------- ---------- ASSETS (dollars in millions) Cash and cash equivalents $35,089 $35,993 $37,589 Marketable securities 18,012 21,737 21,034 ------ ------ ------ Total cash and marketable securities 53,101 57,730 58,623 Finance receivables - net 177,082 199,600 193,755 Loans held for sale 17,581 19,934 20,116 Accounts and notes receivable (less allowances) 16,285 21,236 17,379 Inventories (less allowances) (Note 4) 14,175 12,247 12,544 Assets held for sale (Note 1) 18,748 - - Deferred income taxes 28,499 26,241 27,219 Net equipment on operating leases (less accumulated depreciation) 37,972 34,214 33,016 Equity in net assets of nonconsolidated affiliates 4,260 6,776 6,637 Property - net 39,616 39,020 37,432 Intangible assets - net (Note 5) 4,799 4,925 4,732 Other assets 56,993 57,680 57,182 ------- ------- ------- Total assets $469,111 $479,603 $468,635 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable (principally trade) $29,886 $28,830 $26,404 Notes and loans payable 278,232 300,279 290,920 Liabilities related to assets held for sale (Note 1) 12,319 - - Postretirement benefits other than pensions 32,101 28,111 31,948 Pensions 9,982 9,455 7,824 Deferred income taxes 6,718 7,078 6,134 Accrued expenses and other liabilities 76,620 77,727 77,417 ------- ------- ------- Total liabilities 445,858 451,480 440,647 Minority interests 829 397 369 Stockholders' equity $1-2/3 par value common stock (outstanding, 565,504,852; 565,132,021; and 564,804,464 shares) 943 942 941 Capital surplus (principally additional paid-in capital 15,281 15,241 15,209 Retained earnings 9,754 14,428 14,804 ------ ------ ------ Subtotal 25,978 30,611 30,954 Accumulated foreign currency translation adjustments (1,630) (1,194) (1,678) Net unrealized gains on derivatives 406 589 215 Net unrealized gains on securities 742 751 610 Minimum pension liability adjustment (3,072) (3,031) (2,482) ------- ------- ------- Accumulated other comprehensive loss (3,554) (2,885) (3,335) ------- ------- ------- Total stockholders' equity 22,424 27,726 27,619 ------- ------- ------- Total liabilities and stockholders' equity $469,111 $479,603 $468,635 ======= ======= ======= Reference should be made to the notes to condensed consolidated financial statements. _____________________________________________________________________________________________________________________________________________ GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (As restated, see Note 1) Sept. 30, Sept. 30, 2005 Dec. 31, 2004 (Unaudited) 2004 (Unaudited) ---------- -------- ---------- ASSETS (dollars in millions) Automotive and Other Operations Cash and cash equivalents $13,695 $13,148 $12,984 Marketable securities 1,437 6,655 7,969 ------ ------ ------ Total cash and marketable securities 15,132 19,803 20,953 Accounts and notes receivable (less allowances) 7,800 6,713 6,542 Inventories (less allowances) (Note 4) 13,755 11,717 12,035 Net equipment on operating leases (less accumulated depreciation) 7,302 6,488 6,764 Deferred income taxes and other current assets 9,859 10,794 10,813 ------ ------ ------ Total current assets 53,848 55,515 57,107 Equity in net assets of nonconsolidated affiliates 4,260 6,776 6,637 Property - net 37,860 37,170 35,583 Intangible assets - net (Note 5) 1,674 1,599 1,445 Deferred income taxes 20,343 17,399 18,086 Other assets 41,101 40,844 41,251 ------- ------- ------- Total Automotive and Other Operations assets 159,086 159,303 160,109 Financing and Insurance Operations Cash and cash equivalents 21,394 22,845 24,605 Investments in securities 16,575 15,082 13,065 Finance receivables - net 177,082 199,600 193,755 Loans held for sale 17,581 19,934 20,116 Assets held for sale (Note 1) 18,748 - - Net equipment on operating leases (less accumulated depreciation) 30,670 27,726 26,252 Other assets 27,975 35,113 30,733 Net receivable from Automotive and Other Operations 3,399 2,426 2,548 ------- ------- ------- Total Financing and Insurance Operations assets 313,424 322,726 311,074 ------- ------- ------- Total assets $472,510 $482,029 $471,183 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Automotive and Other Operations Accounts payable (principally trade) $26,784 $24,257 $23,287 Loans payable 1,509 2,062 2,540 Accrued expenses 43,040 46,147 45,420 Net payable to Financing and Insurance Operations 3,399 2,426 2,548 ------ ------ ------ Total current liabilities 74,732 74,892 73,795 Long-term debt 30,929 30,460 30,065 Postretirement benefits other than pensions 27,380 23,406 27,996 Pensions 9,891 9,371 7,755 Other liabilities and deferred income taxes 15,764 15,657 15,402 ------- ------- ------- Total Automotive and Other Operations liabilities 158,696 153,786 155,013 Financing and Insurance Operations Accounts payable 3,102 4,573 3,117 Liabilities related to assets held for sale (Note 1) 12,319 - - Debt 245,794 267,757 258,315 Other liabilities and deferred income taxes 29,346 27,790 26,750 ------- ------- ------- Total Financing and Insurance Operations liabilities 290,561 300,120 288,182 ------- ------- ------- Total liabilities 449,257 453,906 443,195 Minority interests 829 397 369 Total stockholders' equity 22,424 27,726 27,619 ------- ------- ------- Total liabilities and stockholders' equity $472,510 $482,029 $471,183 ======= ======= ======= The above Supplemental Information is intended to facilitate analysis of General Motors Corporation's businesses: (1) Automotive and Other Operations; and (2) Financing and Insurance Operations. Reference should be made to the notes to condensed consolidated financial statements. I regret that the SEC filings of GM's Balance Sheet did not appear as they did on my screen. If you'd like to see them, they are at this address: http://www.gm.com/company/investor_information/sec/ StingRay Thank you for showing these bigoted idiots the facts regarding General Motors. Is GM in some trouble? For sure! Can they recover? For sure. Now Delphi is a horse of a different color. Delphi and the UAW are in for a tough time of it. NOYK in Florida Over 10,000 days at GMPT/GMED/CPC/Chevrolet/Central Foundry Divisions > StingRay > Thank you for showing these bigoted idiots the facts regarding General [quoted text clipped - 4 lines] > NOYK in Florida > Over 10,000 days at GMPT/GMED/CPC/Chevrolet/Central Foundry Divisions There seems to be a lot of fear mongering going on regarding GM's financial status. Part of the problem is that a lot of people just seem to like to see big business fail. Others just naievely believe whatever they read from the people dissemminating the vicious propaganda and just jump on the fear bandwagon. And others just haven't taken the time to look at GM's actual financial statements, or if they have read GM's statements, they just don't understand them. We also have to remember that financial statements are merely a snapshot in time of a company's well-being and that company's like GM often have considerable hidden worth in depreciated assets - worth that isn't even reflected on the Balance Sheet. Yes, GM is presently losing money. Can they sustain these losses for a reasonable period of time? Yes. Are they taking firm action to mitigate these losses and return to a profitable footing? Yes. Will GM be profitable again before it's too late? Definitely. Will GM be operating successfully long after we're all dead and gone? Without a doubt. But they have a lot of hard work, in the short term, ahead of them. A lot of hard decisions, such as plant closings, have to be made and followed through on. How can we help them? By providing feedback whenever the opportunity arises and by buying GM product. We're all subjective in our taste for our vehicles and we're all passionate about them. And we're all in this GM NewsGroup for a reason - there is some GM product that we are or have been passionate about and we are all anxious to see GM return to strong operating results, so we can continue buying GM for many years to come. > but hedge funds are the highest type of risk for any investor, > unless they have their own printing press,... > > gm management should forget about the hedge fund investing.. If that's so they are being very risky with the pension fund. I'm an active investor and avoid the risky hedge funds, which have had a mixed record. |
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