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Value of GM Stocks Fall Below Hyundai and Kia`s

Posted March. 07, 2009 07:44,   


With the financially strapped General Motors seeing a freefall in the value of its stock price, the aggregate value of its listed stocks have dropped below those of Hyundai Motor and Kia Motors.

GM`s accounting firm of Deloitte & Touche LLP yesterday raised "substantial doubt" about the troubled automaker`s ability to continue operations. GM shares dropped 15.4 percent to 1.86 U.S. dollars on the New York Stock Exchange as investors reacted to the news Thursday.

The share was 3.65 dollars early this year.

The aggregate value of GM stocks tumbled to 1.1 billion dollars based on calculation of the common stock value, down nearly half from 2.2 billion dollars earlier this year.

Meanwhile, the aggregate value of Hyundai is believed to be 6.99 billion dollars based on the won`s value of 1,570 per dollar, 6.16 times larger than GM`s. As for Kia, its aggregate value of 1.45 billion dollars is 1.28 times larger than GM`s.

The aggregate value of Hyundai was 3.1 times more than GM`s and Kia`s 80 percent earlier this year.

Sohn Myeong-woo, researcher at KB Investment and Securities, said, “GM, with bigger sales than Korean automakers, is struggling with its falling shares and financial viability. This could be a good opportunity for the Korean auto industry.”