ROIC Rick, ROIC

If you are thinking about buying GM read this first:

"General Motors CEO Rick Wagoner was upbeat on a conference call with investors yesterday outlining his plan for further recovery at the world's largest automaker in 2007 and beyond. While maintaining GM's policy of not providing specific financial guidance, the company plans to address the 8% decline in U.S. vehicle sales last year by increasing capital spending to between $8.5 and $9 billion in 2007 and 2008 after spending less than $8 billion in 2005 and 2006."

So the idea is put more money into a company that seems to be burning through cash like no other. So you would expect something good to come of that right?

"Still, with all the hype being created by Wagoner about how successful 2006 was for the company, GM does not expect to begin generating more cash than it spends in the coming year."

In my opinion Wagoner's record at GM is mixed. He has instituted a slew of turn around plans, but as far as I can tell, has failed to turn the company around.

(original article can be found at Seeking Alpha)