Investing: Any thoughts on Delphi Corp Stock?

[dazraf69]

Delphi has gained a lot ( .30 to 1.72) over the last month or so. Anyone have any insight inot this stock and if now is a good time to buy?

[wpr101]

What does they do again? i.e. what industry are they in?

[PassiveCaller]

Company makes parts for vehicles..

-Negative Book Value
-Increasing Losses
-SEC investigating pension fund

I found these all in 2 seconds in addition to the fact GM is buying less parts from them.

That's enough for me to stop. These were all easily findable without even reading a quarterly report.

What exactly is the question here? If you are considering it you must have done some research of your own. What thoughts do you have?

[dazraf69]

In spite of all that you have stated ( all correct) the price has gone up. And it looks like they are re-structuring. So i guess a better quesion would be why is the price going up?

[hawk59]

Do you realize that they are bankrupt?

[PassiveCaller]

[ QUOTE ]
Do you realize that they are bankrupt?

[/ QUOTE ]

ding ding ding ding... I did notice that like right after I made the initial post. I wasn't too interested and felt those were enough negatives. I guess they were initially a division of GM that was spun off and since then have had problems to say the least. I don't know if GM or someone will be buying them. They do have one profitable division and seem to make parts GM _needs_. This looks like a mess as it looks like GM needs some of the parts they make so maybe it rose on speculation of it being purchased.

This quote did interest me:

"Analysts such as Sanford C. Bernstein's Brian Johnson have said a walkout at Delphi would lead to the bankruptcy of Detroit-based GM, the world's largest automaker, within four months."

from this article:

http://www.bloomberg.com/apps/news?p...c&refer=us

[fflaque]

DPHIQ has been awesome so far, i can't see it going too much more and have been scaling back on my sizes on it....hopefully some of you guys have made good coin on it too.

[hawk59]

[ QUOTE ]
DPHIQ has been awesome so far, i can't see it going too much more and have been scaling back on my sizes on it....hopefully some of you guys have made good coin on it too.

[/ QUOTE ]

Why did you buy it?

[DesertCat]

[ QUOTE ]
[ QUOTE ]
Do you realize that they are bankrupt?

[/ QUOTE ]

ding ding ding ding... I did notice that like right after I made the initial post. I wasn't too interested and felt those were enough negatives. I guess they were initially a division of GM that was spun off and since then have had problems to say the least. I don't know if GM or someone will be buying them. They do have one profitable division and seem to make parts GM _needs_. This looks like a mess as it looks like GM needs some of the parts they make so maybe it rose on speculation of it being purchased.

This quote did interest me:

"Analysts such as Sanford C. Bernstein's Brian Johnson have said a walkout at Delphi would lead to the bankruptcy of Detroit-based GM, the world's largest automaker, within four months."

from this article:

http://www.bloomberg.com/apps/news?p...c&refer=us

[/ QUOTE ]
Delphi is a parts maker spun out of GM and GM has guaranteed some of it's obligations. Delphi is critical to GM's operations. Right now Delphi is trying to get a judge to impose lower wages and benefits on UAW workers. If they succeed, it's a big plus for them and GM (and the american auto industry).

Essentially Delphi carries the "optionality" of a UAW walkout that not only puts GM into bankruptcy, but probably ensures that Delphi shares are worthless. I don't know how to handicap the likelyhood, I would think the UAW isn't dumb enough to do it, but who knows.

I'm staying far away from this one, so I don't have a clue if the positive scenario ends with Delphi stock still being worth anything. Quite often in bankruptcy all outstanding shares are canceled and new shares given to the creditors. Remember that while you are trading Delphi for fun and profit

[fflaque]

i intially bought on a technical breakout and have been in and out on momentum....