The Reynolds Center has announced its 2008 fall workshop schedule.
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The Reynolds Center has opened registration for select 2008 free online seminars.
Topics include:
*Intermediate Business Journalism
*Covering Private Companies
*Business Journalism Boot Camp
General Motors both hit full speed and came to a screeching halt all in the span of a week.
The day after billionaire Kirk Kerkorian's announcement to purchase 28 million shares of the auto giant drove the stock up 18 percent, news from Standard and Poors put share prices in check.
Last Thursday, S&P declared GM's credit rating to have reached "junk" status along with that of Ford, sending GM's stock down 6 percent. Add in a $1.1 billion first-quarter loss and questions begin to swirl around the automaker.
But Kerkorian's affirmation of his share purchase this week -- and hints that he may even purchase more -- could offer a glimmer of hope for GM's future.
"Kerkorian's move to buy up GM shares has already had an effect by sending the share price up by almost $6 in a week," says Ed Garsten, automotive reporter at The Detroit News. "With a maverick like him looking over their shoulders, GM management may move faster to improve the company."
The key for business reporters covering a company that has had its credit status downgraded by S&P is to consider the long-term effects. If a company can rebuild good credit in a relatively short-time frame, it has a chance to re-establish its good name.
Moody's Investor Services is another agency that journalists can keep an eye on for news of credit ratings. In GM's case, there were few surprises when the news came down from S&P.
"The immediate future of GM is not affected too much by the downgrade since the announcement was expected and bond spreads already reflected the expected move," Garsten says. "If GM's rating remains in junk status for an extended amount of time, it will begin to make borrowing more expensive, especially GMAC (General Motors Acceptance Corporation), which uses the bond market to raise cash to lend for vehicles and real estate."
Bankruptcy questions have been levied toward GM in recent weeks. Garsten says GM officials have deflected these questions by pointing to the cash in the bank for the automaker.
But just because there may appear to be a lot of cash on hand, reporters should research what that cash was at the previous year and perhaps five years ago for a wider picture and perspective. Garsten says that GM's cash is "shrinking at a faster-than-optimum rate."
Reporters can turn to GM's 10-K and 10-Q forms on the company's Web site to get a solid picture of its overall health.
Copyright © 2008 Donald W. Reynolds National Center for Business Journalism
