The market has priced out near-term bankruptcy risk. But the company still has industry risk, execution risk and turnaround risk.
The numbers were great ... they have great ratios, they have very affluent subscribers and their revenue per subscriber goes up every month. These guys are what every cable company wants to be when they grow up.
While we give GM a 'B' for effort, this news is not as compelling as it sounds.
It doesn't sound like the UAW is in the mood to be accommodating. So it looks like GM isn't going to get any more relief on the cost side until 2007. If they don't get it then, this is going to be an ugly situation.
I think the banks will make the revolver available if they get collateral. Collateral covers a multitude of sins.
So far they haven't been able to see a strong sense of urgency. It's a little here and a little there. It's not the sweeping kind of change that this company needs.
It's just the wrong product at the wrong time.
If Lear were to go down it would come from a combination of things.
If the situation is coming apart quicker than expected, you can blame it on liquidity and management's inability to communicate and tell a good story.
It?s a case of the rich getting richer and the poor getting poorer.
