GM IPO Around The Corner
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Thread Starter
Joined: Jan 2008
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From: Dallas Texas
I'll never support them willingly.
'05 TSX 6MT
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Have a friend that is threatening to dump 10% of her total investment into this IPO. She figures the govt is gonna get duped again, short term speculation.
I figure GM will go bankrupt again. I think about their environmental liability (enormous) and this likely exceeds the tax carry foreward. I can't price it and not buying...
I figure GM will go bankrupt again. I think about their environmental liability (enormous) and this likely exceeds the tax carry foreward. I can't price it and not buying...
AZ Community Team
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From: N35°03'16.75", W 080°51'0.9"
I thought that General Motors bought back Governemet Motors by paying off they're bailout loans? IOW, as a taxpayer, you don't own squat in GM.
.... or maybe not.
Explain and/or link please.
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
GM has paid about $9.5 billion dollars back to the government. $6.7 billion of that was considered the bailout money. Gm still owes the Obama Admin $26.6 Billion for aide, which should be recovered from the sell of its 912million shares of gm at or around $34-36 a share. $14billion dollars of aide was given to GM by the Bush Admin, So all in all a sell @ $44-$46 a share would clear GM loans
Racer
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From: North NJ
with nothing but positive news why not, GM IPO or no IPO, even JPM put out a recent report saying F's targets will soon be raised to $30 for FY2011. I believe their current target is $19. I'm currently sitting pretty @ $7.60 basis and I kick myself for not buying more, but for a stock priced lower than this GM IPO, a cleaner balance, and brighter outlook, and that it's been tickling it's new 52 week high, I'd say go for it. or not
Moderator
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I'm so tempted to go for Ford.... I think their stock is only going to increase with the things they're doing. I have no idea how to play the stock market and how to begin though, don't think it's smart to jump in head first.
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
with nothing but positive news why not, GM IPO or no IPO, even JPM put out a recent report saying F's targets will soon be raised to $30 for FY2011. I believe their current target is $19. I'm currently sitting pretty @ $7.60 basis and I kick myself for not buying more, but for a stock priced lower than this GM IPO, a cleaner balance, and brighter outlook, and that it's been tickling it's new 52 week high, I'd say go for it. or not
I've made a nice amount of money from banks,airlines when analyst were being pessimistic about those sectors.. Not as nearly as much as the steel sector though.
Senior Moderator
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From: Better Neighborhood, Arizona
I recommend doing a virtual portfolio and keeping track of your realistic charges for transactions for a few months to get the idea.
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
Ford has really stepped up their marketing game, its quite impressive actually. I kick my self all the time for not buying ford @ $3 a share. But who would of guess american cars would have made a comeback.....
Senior Moderator
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From: Better Neighborhood, Arizona
Well as I saw it: Ford had a new CEO who shook things up and was willing to make drastic changes, the Ford family has a lot of $$$ to back up the company, Ford had new designs with much higher quality materials etc. I figured they couldn't go anywhere but up.
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
Thats how I got started. @ the age of 18, I hit the ground running until Cramer screwed me with Lucent Technology. I learned my lesson at a very young age, Do Your own research!
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
wish I would have seen it your way
Me too, I remember talking with my dad and brother when it was $2 saying we should jump all over it.
Banned
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From: Kennesaw, GA
GM has paid about $9.5 billion dollars back to the government. $6.7 billion of that was considered the bailout money. Gm still owes the Obama Admin $26.6 Billion for aide, which should be recovered from the sell of its 912million shares of gm at or around $34-36 a share. $14billion dollars of aide was given to GM by the Bush Admin, So all in all a sell @ $44-$46 a share would clear GM loans
AZ Community Team
Joined: May 2007
Posts: 32,488
Likes: 7,771
From: N35°03'16.75", W 080°51'0.9"
GM has paid about $9.5 billion dollars back to the government. $6.7 billion of that was considered the bailout money. Gm still owes the Obama Admin $26.6 Billion for aide, which should be recovered from the sell of its 912million shares of gm at or around $34-36 a share. $14billion dollars of aide was given to GM by the Bush Admin, So all in all a sell @ $44-$46 a share would clear GM loans
Team Owner
Joined: Jan 2001
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From: Jersey
$33, thanks guys! Now pump it to $53 so we can get out of Dodge, errr GM.
http://finance.yahoo.com/news/GM-say...html?x=0&.v=11
http://finance.yahoo.com/news/GM-say...html?x=0&.v=11
DETROIT (AP) -- General Motors says its common stock will sell for $33 per share when its initial public offering takes place Thursday.
The IPO brings the U.S. government closer to getting back part of the $50 billion it gave GM to help it through bankruptcy protection last year.
The government will sell 412 million shares and get $13.6 billion. It will still have about 500 million shares, or about 33 percent of GM. It would have to sell them for $53 a share, or $26.4 billion, for taxpayers to get back their $50 billion back.
The government and other GM owners will sell 550 million shares starting Thursday. The IPO will be worth up to $18.2 billion, making it one of the largest in U.S. history.
The IPO brings the U.S. government closer to getting back part of the $50 billion it gave GM to help it through bankruptcy protection last year.
The government will sell 412 million shares and get $13.6 billion. It will still have about 500 million shares, or about 33 percent of GM. It would have to sell them for $53 a share, or $26.4 billion, for taxpayers to get back their $50 billion back.
The government and other GM owners will sell 550 million shares starting Thursday. The IPO will be worth up to $18.2 billion, making it one of the largest in U.S. history.
Last edited by doopstr; Nov 17, 2010 at 04:31 PM.
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
$33, thanks guys! Now pump it to $53 so we can get out of Dodge, errr GM.
http://finance.yahoo.com/news/GM-say...html?x=0&.v=11
http://finance.yahoo.com/news/GM-say...html?x=0&.v=11
sit and wait ...
Drifting
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From: Boston Metro
But yea, I still won't touch that stock, maybe if they kept pontiac around...
The sizzle in the Steak
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From: Southern California
Drifting
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From: Boston Metro
I thought that all the pension BS was killed off in the bankruptcy? Isn't that basically the deal? The New GM doesn't have these same debts? Anyone have details on corporate bankruptcy law?
The sizzle in the Steak
Joined: Nov 2001
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From: Southern California
Unions and Obama would not have agreed to that.
And GM still has obligations for U.S. pension plans that are now underfunded, mostly because the company repeatedly used plan assets to pay for buyout packages for tens of thousands of workers as it slashed staffing in recent years.
The pension plans were underfunded by $13.6 billion at the end of 2008, a gap that may well have grown with some additional buyouts since then.
Many times a company in bankruptcy can save a lot of money by shedding its pension obligations as well, passing them off to the federal Pension Benefit Guarantee Corp. Such a move by either GM or Chrysler would have prompted a battle with the UAW. And the Obama administration, whose funding was keeping both companies alive, didn't want to go down that path.
While GM said it doesn't anticipate needing to make contributions to the plans soon, future funding needs could cause problems down the road. It was a pension shortfall that caused GM to sell many of the $27 billion in unsecured bonds that it used the bankruptcy process to shed.
"Maybe it's the third rail nobody wants to touch, but it's the key to these companies being healthy long-term," said Jeffrey Manning, managing director of investment bank Trenwith Securities LLP, specializing in bankruptcy and restructuring. "You've left these anchors on both of these businesses."
The pension plans were underfunded by $13.6 billion at the end of 2008, a gap that may well have grown with some additional buyouts since then.
Many times a company in bankruptcy can save a lot of money by shedding its pension obligations as well, passing them off to the federal Pension Benefit Guarantee Corp. Such a move by either GM or Chrysler would have prompted a battle with the UAW. And the Obama administration, whose funding was keeping both companies alive, didn't want to go down that path.
While GM said it doesn't anticipate needing to make contributions to the plans soon, future funding needs could cause problems down the road. It was a pension shortfall that caused GM to sell many of the $27 billion in unsecured bonds that it used the bankruptcy process to shed.
"Maybe it's the third rail nobody wants to touch, but it's the key to these companies being healthy long-term," said Jeffrey Manning, managing director of investment bank Trenwith Securities LLP, specializing in bankruptcy and restructuring. "You've left these anchors on both of these businesses."
Thread Starter
Joined: Jan 2008
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From: Dallas Texas
The Admin pumped up the IPO price to decrease their ownership in GM. Gov. now owns 25% of GM vs 61% with the sale of today's shares. $32-33 is a bit much for an IPO. I'm waiting for the 5point drop, then I will be in.