Quote:
Originally Posted by a_Username
Everything is a matter of opinion; it just depends if you will have the same opinion once you learn that your assumptions are wrong. The fact is that GM managed to erase much of their debt and vastly better their balance sheet, while Ford chose to do this the hard way. It is admirable, and better for the whole economy, that Ford chose this path. But to ignore the billions of dollars more worth of debt that Ford has to pay instead of GM is really to ignore basic investing. This allows GM to focus more on product planning and investment, while Ford has to take much of their money from their recent industry momentum and put it back to pay for the inevitable debt spiral that is to come for them. This is not to say that GM doesn't have debt to pay off, but it is substantially less than Ford. In reality, both GM and Ford are pretty risky investments but Ford is more so than GM.
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This is all I'm saying right now but IMO this IPO is being rushed and I don't have enough confidence in GM to put my money on the line.