INSIDERS' BLOG: What's up with 'The General'?

INSIDERS' BLOG: What's up with the 'General'? The carnage from General Motors' (NYSE: GM) March earnings warning has been devastating: A stock price that has gone from about $34 per share to $26 (-23.5%), numerous debt downgrades, and now rumors of a dividend cut and even the big 'B' (bankruptcy).

There is no question that the writing was on the wall for GM's current problems --- rising healthcare costs, a powerful unresponsive union, rebates that consumers have become addicted to ---- but has this all gotten out of control now? Is a 5 P/E Ratio justified for a company that led the charge to pull the US economy out of recession after 911? Wake up! GM will be back, when is the only question. We need a big fund to step-up on the bid and catch this falling knife.

Keep in mind, IF GM can maintain its dividend, the yield on it is about 7.7%. That is a healthy looking return in this uncertain market.

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