[bsrsharma]

“NOTHING to do with subprime”

Subprime is so last month. Now the ARMS are the nukes in the Armageddon. This nuclear winter will last till all ARMs are reset and foreclosed (or otherwise resolved). That may last well into 2008.

[bsrsharma]

“NOTHING to do with subprime”

Subprime is so last month. Now the ARMS are the nukes in the Armageddon. This nuclear winter will last till all ARMs are reset and foreclosed (or otherwise resolved). That may last well into 2008.

[bsrsharma]

Chrysler will never again make consistent profits – my prediction is based on reasons you mentioned. Very weak R&D in the areas of fuel efficiency, hybrids, electrics, alternate fuels etc., Excessive reliance on Trucks & Vans for profits, A history of quality problems. If Iacocca could not save them, it is hard to imagine the Home Depot guy will be their savior.

But I think what Cerberus has in mind is to pretty much liquidate US production and become an “asset lite” company. They will then brand either imports with their name tag or get their products OEM’d abroad a la Dell or HP. This is already happening with GM’s Chevy Aveo. Private equity is not dumb enough to believe that they will make money by keeping production in US. It will be interesting to see how they will wriggle out of their pension/medical obligations though.

[bsrsharma]

Chrysler will never again make consistent profits – my prediction is based on reasons you mentioned. Very weak R&D in the areas of fuel efficiency, hybrids, electrics, alternate fuels etc., Excessive reliance on Trucks & Vans for profits, A history of quality problems. If Iacocca could not save them, it is hard to imagine the Home Depot guy will be their savior.

But I think what Cerberus has in mind is to pretty much liquidate US production and become an “asset lite” company. They will then brand either imports with their name tag or get their products OEM’d abroad a la Dell or HP. This is already happening with GM’s Chevy Aveo. Private equity is not dumb enough to believe that they will make money by keeping production in US. It will be interesting to see how they will wriggle out of their pension/medical obligations though.

[bsrsharma]

Chrysler will never again make consistent profits – my prediction is based on reasons you mentioned. Very weak R&D in the areas of fuel efficiency, hybrids, electrics, alternate fuels etc., Excessive reliance on Trucks & Vans for profits, A history of quality problems. If Iacocca could not save them, it is hard to imagine the Home Depot guy will be their savior.

But I think what Cerberus has in mind is to pretty much liquidate US production and become an “asset lite” company. They will then brand either imports with their name tag or get their products OEM’d abroad a la Dell or HP. This is already happening with GM’s Chevy Aveo. Private equity is not dumb enough to believe that they will make money by keeping production in US. It will be interesting to see how they will wriggle out of their pension/medical obligations though.

[bsrsharma]

Allan,

If you assume Chrysler will never again make consistent profits, does it still have value as a corporation based on physical assets (less unfunded pension liabilities and legacy costs)? A casual observation of their product mix strength reveals Chrysler’s profit making days are strictly in rear view mirror in the post $3 gas regime.

[bsrsharma]

Allan,

If you assume Chrysler will never again make consistent profits, does it still have value as a corporation based on physical assets (less unfunded pension liabilities and legacy costs)? A casual observation of their product mix strength reveals Chrysler’s profit making days are strictly in rear view mirror in the post $3 gas regime.

[bsrsharma]

Allan,

If you assume Chrysler will never again make consistent profits, does it still have value as a corporation based on physical assets (less unfunded pension liabilities and legacy costs)? A casual observation of their product mix strength reveals Chrysler’s profit making days are strictly in rear view mirror in the post $3 gas regime.

[bsrsharma]

“Tenancy-in-Common” – is this a way to acknowledge that soCal housing is too expensive for most residents so they will pack multiple families in to a house (as many immigrants are already doing in soCal)?

[bsrsharma]

“Tenancy-in-Common” – is this a way to acknowledge that soCal housing is too expensive for most residents so they will pack multiple families in to a house (as many immigrants are already doing in soCal)?

[bsrsharma]

“Tenancy-in-Common” – is this a way to acknowledge that soCal housing is too expensive for most residents so they will pack multiple families in to a house (as many immigrants are already doing in soCal)?

[bsrsharma]

I looked up their income statement; they made a gross profit of 1.26B on a revenue of 4.27B last year. Unless, things are much much worse this year (they probably are), I would think they may survive with a Chap 11 rather than liquidate.

As a comparison, If I remember, Lucent was in far worse shape, almost no revenues – forget profits, during dot com bust but was still bought by Alcatel (of France). I read somewhere Chrysler has a net negative worth when divested from Daimler but was bought by Cerberus. Strange are the ways of Merger Maniacs!

BTW, Cerberus appointed ex Home Depot Chairman Nardelli to run Chrysler. Deaf guiding a blind?

Income Statement
Revenue (ttm): 4.27B
Revenue Per Share (ttm): 111.326
Qtrly Revenue Growth (yoy): -36.80%
Gross Profit (ttm): 1.26B
EBITDA (ttm): 188.63M
Net Income Avl to Common (ttm): -133.23M
Diluted EPS (ttm): -3.44

[bsrsharma]

I looked up their income statement; they made a gross profit of 1.26B on a revenue of 4.27B last year. Unless, things are much much worse this year (they probably are), I would think they may survive with a Chap 11 rather than liquidate.

As a comparison, If I remember, Lucent was in far worse shape, almost no revenues – forget profits, during dot com bust but was still bought by Alcatel (of France). I read somewhere Chrysler has a net negative worth when divested from Daimler but was bought by Cerberus. Strange are the ways of Merger Maniacs!

BTW, Cerberus appointed ex Home Depot Chairman Nardelli to run Chrysler. Deaf guiding a blind?

Income Statement
Revenue (ttm): 4.27B
Revenue Per Share (ttm): 111.326
Qtrly Revenue Growth (yoy): -36.80%
Gross Profit (ttm): 1.26B
EBITDA (ttm): 188.63M
Net Income Avl to Common (ttm): -133.23M
Diluted EPS (ttm): -3.44

[bsrsharma]

I looked up their income statement; they made a gross profit of 1.26B on a revenue of 4.27B last year. Unless, things are much much worse this year (they probably are), I would think they may survive with a Chap 11 rather than liquidate.

As a comparison, If I remember, Lucent was in far worse shape, almost no revenues – forget profits, during dot com bust but was still bought by Alcatel (of France). I read somewhere Chrysler has a net negative worth when divested from Daimler but was bought by Cerberus. Strange are the ways of Merger Maniacs!

BTW, Cerberus appointed ex Home Depot Chairman Nardelli to run Chrysler. Deaf guiding a blind?

Income Statement
Revenue (ttm): 4.27B
Revenue Per Share (ttm): 111.326
Qtrly Revenue Growth (yoy): -36.80%
Gross Profit (ttm): 1.26B
EBITDA (ttm): 188.63M
Net Income Avl to Common (ttm): -133.23M
Diluted EPS (ttm): -3.44

[bsrsharma]

When you say “kaput” or “BK” are you meaning Chapter 11 reorg or liquidation (Chapter 7)? If it is Chapter 11, it is no biggie; they can ride through the down turn. I think all builders will go through some sort of bankruptcy during the big bang – the question is can they reorganize or liquidate.

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