Professor Elam

I mentioned an article during the grad class that laid out the real Ford balance sheet, the writer concluded that there was no value here.  And so here is another contrarian opinion suggesting that neither Ford nor GM is worth anything.  This writer mentions that a rumor has been floated that the Ford family might consider selling all its stock, incredibly the stock went up on this news.  If the Ford family is ready to bail, why wouldn’t everyone?

This is a good analysis of valuing a company and a must read for accounting and finance students.  Jerry Flint at Forbes has suggested that bankruptcy would not do them any good as most union workers are older and own their homes.  While the showdown at Chrysler with unions remains, this writer points out that unions difficulties are only part of the problem as GM and Ford have gone ever deeper in debt to try to show a profit.