Analyst: GM may need to boost cash
Slowing sales of its high profit-margin large vehicles, plus a weak U.S. economy, may force the giant automaker to raise more than $9 billion in cash in the next couple of years, an analyst said Wednesday.
Although such a financing would dilute current shareholders’ stake somewhat, it would be a prudent move, a local investment advisor said.
‘‘Once a company keeps borrowing and going into debt, it puts a strain on earnings and the shareholders, but I’d be more concerned about the strength of GM than a little dilution,’’ said Michael Creatore of Creatore Wealth Management Group in Boardman. ‘‘I think GM is being smart and cautious with current financial conditions.’’
Creatore said GM could raise cash by issuing longer-term bonds and refinancing costly debt instead of issuing stock.
‘‘They’re not in a cash crunch, but they are going through a cash drain,’’ he said.
Gas prices rocket to another record
Northeast Ohio gasoline prices continued their record-setting course for the fourth straight week, rising more than 20 cents per gallon to $3.75 for self-serve regular, according to AAA Fuel Gauge.
» Full StoryArea auto dealers buck sales trend
Soaring gasoline prices and a weakening economy took a bite out of consumer spending April — notably a 2.8 percent decline in new-vehicle sales — but local dealers offering fuel-efficient vehicles bucked the trend.
» Full StoryAuto dealers keep -pushing sales pedal
Area car dealers made it seven straight months of rising new-vehicle sales with an 18.5 percent gain in April over April 2007, according to a local dealers association report Monday.
» Full StoryChange would hike weight limits
WARREN — Citing rising fuel costs and competitive pressures, the steel industry and customers are urging lawmakers to boost the weight limit for trucks carrying three steel coils to the same as two coils –– a change railroad steel haulers vehemently
» Full StoryWorking for the summer
Amid whispers of recession and unemployment figures that continue to creep up, local teens are emerging onto the job market en masse this summer.
» Full Story
Michael Lee sentencing
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yard work feature
TAC-8 track and field meet
YMCA Olympics
National Nursing Home Week
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Howland Boys Tennis
