Author Topic: GM - General Motors  (Read 558899 times)

fareastwarriors

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Re: GM - General Motors
« Reply #1670 on: May 21, 2019, 08:59:55 AM »
https://www.wsj.com/articles/gms-car-sharing-business-to-end-service-in-eight-of-its-17-north-american-cities-11558382917

Oh just another example of ambitious managements shunning boring old share repurchases to pursue some unnecessary business venture that ultimately incinerates capital...

I use Maven on the Gig side, not car sharing. I think it's a good service. If they can't make money renting their Chevy Bolt to me at $290 a week, I don't know what else to say.


Gregmal

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Re: GM - General Motors
« Reply #1671 on: May 21, 2019, 09:27:31 AM »
https://www.wsj.com/articles/gms-car-sharing-business-to-end-service-in-eight-of-its-17-north-american-cities-11558382917

Oh just another example of ambitious managements shunning boring old share repurchases to pursue some unnecessary business venture that ultimately incinerates capital...

I use Maven on the Gig side, not car sharing. I think it's a good service. If they can't make money renting their Chevy Bolt to me at $290 a week, I don't know what else to say.

I dont doubt that there is potential here; I dont think any company goes into a venture knowing its a bad idea but does it anyway. My point was moreso to highlight just another example of how a company takes on a riskier venture rather than just keeping it simple and buying back stock.

Gregmal

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Re: GM - General Motors
« Reply #1672 on: Today at 10:57:07 AM »
This is just the gift that keeps on giving.....

Ahab

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Re: GM - General Motors
« Reply #1673 on: Today at 11:12:17 AM »
I sold out of my position in the B-warrants early this morning. Even though I have a positive long term outlook on the stock (particularly related to Cruise Auto), I think the trade war & SAAR worries will slam the stock some more this year. Looking to establish a position in the Jan 21' LEAPS at a later point..

Gregmal

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Re: GM - General Motors
« Reply #1674 on: Today at 11:43:59 AM »
I dont disagree. I just have zero confidence in Barra doing anything remotely useful in terms of capital allocation. She is ruining whatever benefits may come from running the business in a respectable fashion. The CEO of a public company should not be clueless when it comes to handling that side of the company.

Ahab

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Re: GM - General Motors
« Reply #1675 on: Today at 01:42:29 PM »
I totally agree. It's really disheartening that they have not conducted a larger buyback. In my thinking, conducting sizable buybacks and highlighting the value of Cruise are the two major levers for management to finally push this stock higher.

JRM

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Re: GM - General Motors
« Reply #1676 on: Today at 05:11:00 PM »
I threw in the towel (sort of) yesterday, so now is probably the time to buy.  I sold a $35 and $40 strike calls against 2/3 of my position and used the proceeds to buy $30 strike puts against my full position (Jan 2021 expiration); slightly below my original cost basis a few years ago of $32. Worst case scenario I can get out for slightly less than I got in for and collect dividends for 5 years.  Best case 1/3 of my current position goes to infinity and beyond.