Long Hard Fall For GM Stock
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Updated: 9:52 PM Nov 11, 2008
Long Hard Fall For GM Stock
Looking up from Tuesday's close, GM's heyday on Wall Street seems a lifetime away.
Posted: 8:43 PM Nov 11, 2008
Reporter: Jason Colthorp
Email Address: jason.colthorp@wilx.com
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Fears that General Motors is going to run out of cash translated into a more than 60-year low for shares of the number one automaker Tuesday. GM shares fell to $2.92 today-- the lowest since World War II.

Here's a history of how far GM shares have fallen and why it's rock bottom.

April 2000: Stock is sky high at more than $93 dollars a share.
January 2004: Still strong at $53 dollars a share despite growing concern of high fuel prices.
October 2007: A little more than a year ago and it was almost $43 dollars. Then the bottom fell out.

It's no coincidence GM's free fall in the last year coincided with the surge in oil prices that topped out at $146 dollars a barrel on July 3 of this year.

Analysts who say GM has only itself to blame for this mess point to these stats:

October 2005: GM and Ford SUV and truck sales fall 30 percent.
March 2006: Yet five months later GM increases production of its most popular SUV's-- the Chevy Tahoe, Suburban, GMC Yukon XL and Cadillac Escalade. This was GM's plan to rebound from $10.6 billion dollars in losses in 2005.
June 2008: Two years later, GM announces it's closing four plants where three of those SUV's are primarily built.

Analysts also say GM got started way too late on developing its hybrid technology. Instead of increasing SUV production in 2006, GM's leadership should have followed the lead of other automakers, like Toyota, in recognizing the immediate future of automobiles was fuel-efficiency.


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