The New York Stock Exchange ( NYSE ) just halted General Motors ( GM ) pending their earnings release due out any moment. I will edit this post with an update when earnings come out. The number you will want to watch is their cash burn rate. Here are Ford's earnings this morning. http://daytradingstockblog.blogspot.com/2008/11/ford-f-earnings-110708-november-7th.html
GM Earnings ( $7.35 ) vs ( $3.70 ).....huge loss!
General Motors burned through 6.91 Billion in cash during the quarter, they are burning through 2.3 billion dollars per month, Yikes!
"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve, it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, receives government funding under one or more current or future programs, or some combination of the foregoing. The success of GM's plans necessarily depends on other factors, including global economic conditions and the level of automotive sales, particularly in the United States and Western Europe. "
http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/gmnews/viewmonthlyreleasedetail.do?domain=74&docid=50141
They have 120 days during which something needs to happen or they could go bankrupt.
GM stock is trading at $4.10 per share