(Feb. 25) - What costs more — a spark plug or a share of General Motors? A Sunday New York Times or a share of the newspaper company? A General Electric toaster or a share of GE?
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What Costs More: GE Share or Toaster?
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SMALL BUSINESS
In the surest sign of the depth of the recession, the products associated with these high-profile companies now cost more than buying a piece of the business.
Shares of some of the most renowned companies have come under assault as the worst recession in decades saps investor confidence and drags major stock indexes to their lowest levels since 1997. Despite Tuesday's 3 percent gain, the Dow Jones industrial average is still off almost 50 percent from its 2007 high — and there's little evidence it's hit bottom.
"This is a time for the history books," said Jim Coons of Coons Advisors, a financial consultant.
When the housing bubble began to burst, share prices began to cascade first in the homebuilding industry, but it spread quickly to almost every sector of the economy.
Today, a share of Hovnanian, one of the nation's largest builders, can be had for 96 cents, less than it costs for a set of spare house keys.
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Banks, stung by plummeting mortgage values, followed. A share of Citigroup Inc. which cost $55.66 at the beginning of 2007, now costs $2.60. ATM fees can total $3 or more for using an out-of-network bank card.
Since the start of 2007, shares in companies from every sector have been hit.
— General Motors shares have fallen from $30.30 to $2.22, less than the cost of a standard spark plug (about $3.79).
— New York Times Co. shares have fallen from $24.27 to $3.95, cheaper than the $4 cost of its Sunday edition.
— General Electric Co. shares fell from $30.30 to $9.08, cheaper than a GE two-slice bagel toaster at Wal-Mart, selling Tuesday on the clearance rack for $12.
— Office Depot is down from $38.27 to $1.26, less than a 12-pack of medium point Papermate BallPoint Stick Pens which runs $1.89.
— US Airways has fallen from $53.89 to $3.66, less than the current $4 cost of two in-flight coffees.
The bargain-basement stock prices of America's best known companies present either the greatest opportunity of a lifetime — or the biggest money pit this side of the Great Depression.
Of course, many didn't survive then — and many won't survive now. Someone who bought shares of Circuit City, which cost $5.75 before the one-time retailing bellwether announced it would close, would have been better off buying a four-pack of AA batteries.
The company is now selling furniture and fixtures from its headquarters as it liquidates.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2009-02-25 00:23:05
Recent Comments
SERGEANT RUSS 03:02:04 AM Feb 26 2009
I have absolutely no sympathy for GE or its stockholders. They have kept their incompetent CEO in office for far too long. GE was doing business with Iran while they were killing Americans. The company would rather move their manufacturing overseas than give Americans job. I hope GE will soon no longer be in business at all.
BrazosBluz 02:00:24 AM Feb 26 2009
maybe when these dumb arses realize that the USA is their biggest consumer...they will bring the jobs back from China so said Americans will buy again..the chinese certainly arent going to buy that shoddily made crap...there are CEOs getting paid millions to not think of this backlash...lol
obamanation4u 11:46:52 PM Feb 25 2009
Plus, the toaster will still be worth something tomorrow!
BengalOneTZ 10:56:16 PM Feb 25 2009
GE,NBC,and The NY Times all need to go down. Liberal loving pukes.....
fcifin 10:53:33 PM Feb 25 2009
GE appliances suck! They use Chinese parts, have 1 year warranties and are programmed to break down as soon as the warranty has expired. The LOVE is gone GE doesn't care about the stockholder or consumer!
PSupply272 10:41:30 PM Feb 25 2009
Every day is $1.00 day in this stock market. I feast on the good name on the bottom.
brax616 10:00:11 PM Feb 25 2009
update on last comment. It was New York times. Here is the copy of the quote from the articleWe are being extra careful to avoid any potential future losses,â said Russell Wilkerson, the G.E. spokesman. âBut fundamentally we have continued to do a lot of lending.â And, he added, the company has not received any money from TARP.
brax616 09:57:46 PM Feb 25 2009
sstro ge didn't take tarp money. Please do your research. Hear is a link to a recent Wall Street journal article.http://www.nytimes.com/2008/11/23/business/23gret.html
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