Picture this: You're General Motors Corp. (NYSE: GM), and you've fallen on tough times. You've been forced to seek alms from the U.S. government simply to make ends meet. Recently, the Obama administration gave a resounding thumbs-down to your viability plan, and a bankruptcy filing seems increasingly likely. So, how do you try to prove you're still a thriving, relevant corporation? Partner with Segway!
That's right -- in a move that's sure to leave even Steve Wozniak scratching his head, General Motors is teaming up with Segway, Inc., purveyors of the commercially unsuccessful two-wheeled scooter, to create the PUMA (shorthand for Personal Urban Mobility and Accessibility). A prototype of the battery-powered vehicle will hit the streets of Manhattan today, though the PUMA likely won't make its way to the consumer market until 2012.
Although the Segway Personal Transporter quickly proved its irrelevance by being costly, sluggish, and irksome to motorists and pedestrians alike, GM believes that the PUMA's car-like enclosed compartment and greater maximum speed of 35 miles per hour will enhance its appeal. Judging by the prototype, GM is seeking to combine the aesthetics of the Smart car with the relative uselessness of the Segway.
The shares of GM are already trading rather low on the charts -- just fractionally above $2 per share at last check -- but option players are beginning to snap up puts at a faster pace than calls. During the past 10 days, traders on the International Securities Exchange (ISE) have bought to open 1.17 puts for every call on GM.
Peak put open interest in the April series rests at the deep in-the-money 5 strike, with 51,458 open positions. However, some bearish players are placing their bets even further south -- GM's relatively new April 1 strike has 33,509 put contracts in residence. Shares of the automaker haven't broken the buck just yet, with the stock's annual low standing at $1.27, but it seems that speculative investors aren't ruling out this possibility during the short term.
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.
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Reader Comments (Page 1 of 1)
4-07-2009 @ 1:31PM
tb said...
this has got to be a joke!
omg! if this is all GM has to offer...than i'm afraid they are s.o.l. see you in bancruptcy court!
honestly, you can't safely operate these seg/gm's on the road...most especially not in michigan! i drive a chevy aveo and my tires are 16" and my rims are shot to hell.
if this seg/gm fell into a pothole...certain death is imminent!
there are not enough offroad trails to operate these 2 wheel death contraptions either...and can we talk about insurance...how much do you think that will cost?!?
go back to the drawing board boys...you still don't have a viable plan.
4-07-2009 @ 1:46PM
CoolTubes said...
There is a great concept of roadways for small electric vehicles - Segways and PUNTA are good examples - that also serve bicycles and pedestrians.
This particular concept can be constructed for less than $1 million per mile - about the same cost as a bike trail.
You can see lots of info and movies at http://CoolTubes.org
4-07-2009 @ 1:39PM
dave said...
I have visited NYC twice in my life. I think that it would be suicidal to ride in this type of vehicle there. Most people whom have suicidal ideations need to seek treatment. You might try this idea out in small urban college type areas that have nice bicycle lanes for use.
4-07-2009 @ 1:58PM
david_wardrop said...
I was hoping it would be Tesla...
4-07-2009 @ 2:26PM
paul s said...
Why did we give special interests control of our treasury? GM has now proven to all what some of us already knew. They are no longer cognizant of reality. It's like giving a junkie money.
4-08-2009 @ 2:12AM
JournalRhythm said...
there's a new concept in the automotive business
it's 2 seated, 2 wheeled, and too ambitious
General Motors fearing their time is over
is desperate to meet their innovation quota
partnered with Segway trying to make headway
came up with something just a little more deadly
works like the other one except that you sit
and ride around praying that you don't get hit
To listen to me rap my opinion, visit:
http://www.youtube.com/watch?v=64rpjlcf23Q
4-08-2009 @ 12:59PM
Duke said...
Come on GM. An electric rickshaw? Even if this were to make it to production in a more asthetic version, GM wouldn't sell enough to pay the taxpayer back. $6,000 is too much for such a little novelty. You can't carry anything in it. The Chinese and Indians might be interested in it. They would modify it to hold more goods and people. Most of all they would steal the technology and make a version of their own by circumventing the patent laws. They would sell it for far less and export them here, where the souped up Rascal would be affordable.
4-13-2009 @ 10:29AM
gramygolf said...
when we were kids just starting out gmc was was kind to us we had a new car and lots of bills and they gave us time out to pay i have faith that they will come through this i dont have a lot of money but i bought some stock im with you a friend from tn