GM News Announcement: survival in economic crisis

The current economic crisis is bad the world over and while its hitting some companies hard, GM shows just how bad with numbers.

Today we are hearing from a GM CEO news announcement that the automaker is making some massive cut backs just in order to survival the economic crisis, Rick Wagoner has shown in this press release just how bad things are.

General Motors are taking drastic measures that include cutting 20% of salaried workforce, selling off $4 to $7 billion in assets and halting its quarterly dividend payout.

This may seem harsh but it’s also a decision that will enable GM to take some control in the current economic crisis and maintain operating liquidity.

The current oil prices have continued to increase and it’s anyone’s guess where they will go from now, this fact has hit GM hard on its truck and SUV lines.

Rising gas prices have not just affected GM, we expect others in the American auto industry to make similar announcements in the coming weeks that will show how bad the auto industry has been hit by the price of oil.

GM is now hoping to replace its experienced and expensive workers with cheaper labor by offering them all buyouts. Do you think GM has made the right choices?

Source: Read

Nvidia Stock Drops Around 25 Percent

There were many reasons why Nvidia issued a profit warning and these included a price war in the industry, a delay in new products being launched and weak demand.

The moment Nvidia announced expectations of lower revenues; their stocks plummeted as much as 25 percent. To make matters worse they have also said to expect a charge of around $200 million to cover the costs of defected Nvidia chips.

This charge will cover returns and repairs that have affected some laptop GPUs to overheat and fail. The lower profit has been predicted due to all the different factors and does not look like a long-term problem for Nvidia.

At first the Nvidia chipmaker was expected to make $1 billion in its second-quarter but this figure has now been taken down to around $875 million. Still not bad considering the current market and problems.

Source: Read

Hot Stocks: The dollar sank to all low and oil rose to $101 a barrel

After a supple cut in Nigeria, Africa’s top exporter and with the U.S. dollar sinking to new low oil rose towards $101 a barrel, investors have pumped a lot of cash into commodities in recent weeks and Read more

Should Microsoft pay more for Yahoo: top investor thinks so

Microsoft’s $44.6 billion bid for Yahoo a week ago was a good offer at a 60 percent premium, but a giant investment company that owns 11.4 percent of Yahoo wants the deal sweetened. Capital Research and Management wants to know how far Microsoft will go to buy Yahoo Read more