This company has a long way to go. It is a marathon, not a sprint. To buy these bonds you have to be in it for the long haul. It is very possible they will trade down before they trade up. |
This isn't monumental news. But anything that helps GM's cost of funding is a good thing for the company. |
This tells us what we already know, that this is a company in deep trouble. Their GM business is falling away so fast that their non-GM growth cannot compensate for that. |
Today's announcement didn't do anything to calm my fears. They are probably still negotiating with their banks, but I can't believe the only issue is the credit rating. Deals don't blow up over ratings. Banks care about operating results. |
We'd like to see Lear's bonds get cheaper before we jump in. |
While we give GM a 'B' for effort, this news is not as compelling as it sounds. |