Delphi Flirts With Bankruptcy

Delphi (DPH), the auto-parts supplier spun off from General Motors (GM) in 1999, is on the edge of filing for bankruptcy. As a result of the spin off, Delphi must pay its workers high wages and benefits similar to auto workers. And its revenues are down because of production cuts at General Motors, one of its largest customers.

The price chart for DPH shows a prolonged downside composed of many price cycles since it was spun off. Of the 1,383,616 daily buy and sell combinations from February 5, 1999 through September 26, 2005, only 18.48 percent made money. Obviously DPH has been a disaster for most of its shareholders. Avoid this stock.