GM needs to sell shares for $134 for We the People to recover bailout

[SSG Snuggle Bunny]

This was one area of government intervention that the DUmbasses were pointing towards with gleeful enthusiasm:

In order for the United States to recoup all of its $50 billion investment in General Motors, it must sell its ownership stake at $134 a share, according to the special inspector general of the government's bailout programs.

The estimate comes as the automaker readies itself for a public stock offering, setting the stage for the government to withdraw from its majority stake in the company.

The price needed for a full recovery of the U.S. investment is far higher than shares of the automaker have ever reached, and some analysts and government officials have expressed doubts that the United States will be able to recover the money.

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092205674.html

Yes, but at least they were able to arbitrarily negate centuries of contract law in order to steal money from the principle lien holders and use it secure favored union votes which in turn donate hundreds of millions of dollars to democrat campaigns...

...and that's what is really important.

[JohnnyReb]

JohnnyReb reaches in pants and pulls out his pocket change...change you can believe in but not buy much with any more ....and comtemplates buying a couple hundred shares at their true value......decides to buy a few pieces of bubblegum instead.

[thundley4]

How much of the GM stock will be bought by foreign nationals?  Maybe Obama can trade some of his shares to the Chinese .

[Chris_]

How much of the GM stock will be bought by foreign nationals?  Maybe Obama can trade some of his shares to the Chinese .

This came up on CNBC and Fox earlier today.  They're expecting an IPO of $20/share and a majority of American investors to buy them.

[SSG Snuggle Bunny]

How much of the GM stock will be bought by foreign nationals?  Maybe Obama can trade some of his shares to the Chinese .

I cool with it as long as we ship the union thugs over to Beijing.

Let that Trumka asshole deal with someone who really knows how to break a strike.

[TVDOC]

This came up on CNBC and Fox earlier today.  They're expecting an IPO of $20/share and a majority of American investors to buy them.

Bwahaaahaaa........

This may be the first IPO to drop from offering price to "penny stock" status on the first trading day.......that is, assuming the market is willing to buy them at all.....

Pretty sad, considering that ten years ago, GM had enough unencombered fixed assets and cash on hand to support a liquidation price of $50/share.......

doc

[Carl]

Bwahaaahaaa........

This may be the first IPO to drop from offering price to "penny stock" status on the first trading day.......that is, assuming the market is willing to buy them at all.....

Pretty sad, considering that ten years ago, GM had enough unencombered fixed assets and cash on hand to support a liquidation price of $50/share.......

doc

I kind of wondered too as Ford stock is in the 12s right now and is a profitable company.
How the hell can the new GM stay at 20 when the fundementals (EPS) will not likely support it or no one thinks it will rocket up to be a trading stock?

I am probably missing something regarding number of shares offered but just doesn`t make sense to me.

[Chris_]

What I heard on CNBC was GM splitting the original IPO shares so that they could sell them @ $20.  I didn't get a whole lot of background on it.

[TVDOC]

What I heard on CNBC was GM splitting the original IPO shares so that they could sell them @ $20.  I didn't get a whole lot of background on it.

I suppose that means that they initially intended to offer at $40, and nobody would underwrite it.......lets see if they have the traditional essentials for a successful IPO........

Strong earnings history.........nope

Positive debt-to-equity ratio.........not even close

Rising large-cap market trend.........nope (although it could be argued that they have shrunk to "mid-cap" status now)

Aggressive 5-year product offering strategy..........ya gotta be kidding me.....(the "Volt")

Excellent senior management track record.......I suppose if you consider three CEO's in 18 months "excellent"

Contingent Liabilities adequately controlled (pension obligations)..........no way

Looks like a recipe for disaster to me.........Only the Obama administration would be stupid enough to try this...

doc

[thundley4]

Contingent Liabilities adequately controlled (pension obligations)..........no way

Don't forget that there have been talks about a government bailout of union pensions. That would be a massive boon to GM.

[DumbAss Tanker]

I kind of wondered too as Ford stock is in the 12s right now and is a profitable company.
How the hell can the new GM stay at 20 when the fundementals (EPS) will not likely support it or no one thinks it will rocket up to be a trading stock?

I am probably missing something regarding number of shares offered but just doesn`t make sense to me.

Share price by itself doesn't mean anything, until you bounce it against the numbers of share outstanding and to be offered.  Twice the shares at half the price still ends up at the same capitalization.  However, in this case, I don't directly own Ford stock so I don't have any specific relevant data on the point.