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GM IPO may be hard sell
Dayton Business Journal ^ | 8/19/2010 | Editor

Posted on 08/20/2010 7:26:45 AM PDT by Qbert

Investment advisers say the highly-anticipated General Motors Co. IPO may not have investors breaking down the doors.

Tom Mangan, senior vice president and portfolio manager with Beavercreek-based James Investment Research Inc., said GM’s initial public offering will be a hard sell, with many institutional investors wary of a company that is run by the government.

“Former shareholders and bondholders will most likely be reluctant to jump back into the stock, especially given the disingenuous commercial by CEO (Ed) Whiteacre where he said GM paid back its government loan in full,” Mangan said.

In addition, Mangan said brokers will not be highly incentivized because the underwriting concession and sales allowance for selling the shares is extremely low compared to other IPOs.

(Excerpt) Read more at bizjournals.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: autos; bailouts; gm

1 posted on 08/20/2010 7:26:47 AM PDT by Qbert
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To: Qbert

You want to fund GM’s liabilities then get into their IPO.


2 posted on 08/20/2010 7:29:57 AM PDT by AU72
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To: Qbert

Given the companies record who would be stupid enough to buy stock??


3 posted on 08/20/2010 7:32:06 AM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: Qbert

It’s toxic — stay away fromn this one. They’re looking to finance production of those lovely battery powered green mobiles.

Picture this: They raise $$$ from bond investors to produce these, nobody wants to buy them, they are forced to sell them at a huge loss and/or Obama gives them some stimulus $$$ or gives buyers big tax incentive to buy. Either way, more of the same idiocy...

GM should have been closed down and the union parasites who have bled the company dry should be left to starve.


4 posted on 08/20/2010 7:32:25 AM PDT by Constitutional Patriot (Socialism is the cancer of humanity.)
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To: AU72

With the union contract unmodified, and the union in titular control of the company, I wouldn’t touch that stock. Money right down the crapper.


5 posted on 08/20/2010 7:33:10 AM PDT by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: Qbert

Want to buy into an insane asylum where the inmates run the show...err, a car company where the union owns the business...go ahead and buy into the IPO. Just don’t expect hardball negotiations on the next union contract and the cost will be yours.


6 posted on 08/20/2010 7:34:58 AM PDT by highlander_UW (Education is too important to abdicate control of it to the government)
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To: Qbert

I know nothing about this stuff. how can they do an IPO when they sold stock before?

isn’t this where the stock holders got screwed during the bailoug and the unions got rewarded?


7 posted on 08/20/2010 7:36:07 AM PDT by IOWAfan (College Football is almost here! Go Hawkeyes!)
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To: Constitutional Patriot

“It’s toxic — stay away fromn this one. They’re looking to finance production of those lovely battery powered green mobiles.”

And additionally, the new CEO and new CFO have absolutely no experience in the automative industry...


8 posted on 08/20/2010 7:37:20 AM PDT by Qbert
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To: Qbert
How soon can I sell the stock short?
9 posted on 08/20/2010 7:38:03 AM PDT by KarlInOhio (Gun control was originally to protect Klansmen from their victims. The basic reason hasn't changed.)
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To: Qbert

I know when I go to buy stock I often ask “which company required 20 billion in bailout to stay afloat and kept the same management?”


10 posted on 08/20/2010 7:38:29 AM PDT by Mr. K (Physically unable to proofreed (<---oops! see?))
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To: Qbert

“In addition, Mangan said brokers will not be highly incentivized because the underwriting concession and sales allowance for selling the shares is extremely low compared to other IPOs.”

So if they had good enough salesman, they could find suckers to buy this? Maybe some rich Arabs or Japanese.....


11 posted on 08/20/2010 7:39:36 AM PDT by proxy_user
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To: Qbert

Not to worry. The money will come from O’s stash.


12 posted on 08/20/2010 7:40:31 AM PDT by Carley (For those who fought for it, freedom has a flavor the protected will never know.)
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To: proxy_user

“So if they had good enough salesman, they could find suckers to buy this? Maybe some rich Arabs or Japanese.....”

Or the Chinese government. They seem eager to keep throwing money down an endless pit...


13 posted on 08/20/2010 7:44:16 AM PDT by Qbert
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To: Constitutional Patriot

Why on Earth would anyone buy this crap when the precedent has already been set that the Administration can f*** you out of your money any time they wish?


14 posted on 08/20/2010 7:45:39 AM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: KarlInOhio

“How soon can I sell the stock short?”

They haven’t officially announced a date that the shares will be sold to the public on the market. If they do go through with the IPO, I think they’re saying the date will be sometime between late October and Thanksgiving (hint, hint).


15 posted on 08/20/2010 7:51:31 AM PDT by Qbert
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To: Cheetahcat

“Given the companies record who would be stupid enough to buy stock??”

Unfortunately, we (taxpayers) are likely going to be the biggest purchasers of this stock, they can’t let the IPO fail.


16 posted on 08/20/2010 8:07:06 AM PDT by RS_Rider (I hate Illinois Nazis)
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To: Cheetahcat
Given the companies record who would be stupid enough to buy stock??

Banks and investment firms who have their soul owned by Obama, will be brought into the oval office and given their directions.

17 posted on 08/20/2010 8:15:08 AM PDT by CharacterCounts (November 4, 2008 - the day America drank the Kool-Aid)
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To: KarlInOhio

I would assume within days of the IPO.


18 posted on 08/20/2010 8:16:27 AM PDT by nascarnation
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To: Ouderkirk

“GM was taken from the bond holders at gunpoint and given to friends of the state.”

saw this descriptive phrase on an auto website


19 posted on 08/20/2010 8:17:54 AM PDT by nascarnation
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To: Qbert

United Autoworker Union will garnish proceeds from this stock sale . Payback time.


20 posted on 08/20/2010 8:19:29 AM PDT by Broker (Hutzpah!)
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To: Qbert

Perhaps if they gave away a new Chevy Volt with the purchase of every 100 shares it might spur stock sales and the production of these white elephants. (sarcasm)


21 posted on 08/20/2010 8:35:25 AM PDT by The Great RJ (The Bill of Rights: Another bill members of Congress haven't read.)
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To: Qbert

Ask George Soros to invest heavily.


22 posted on 08/20/2010 8:36:45 AM PDT by Rapscallion (Obama - Arrogant, blaming, incompetent, anti-American, racist, and Marxist....Is that enough?)
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To: Qbert

Never in my life time (and I have many years left to live) will I ever buy, use, contribute to any GM product, even after BO is long out of office.


23 posted on 08/20/2010 8:38:38 AM PDT by Pilated
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To: Qbert

This is a bad investment, whether at an absurd and ruinous $50 a share, or $10 a share, or $1 a share, or even a less shocking but still overpriced $0.01 a share, or 100 shares for a penny. Profiting off of the nationalized version of GM would be immoral when they are keeping $30B plus in taxpayer money and the bondholders were ripped off by executive fiat and in violation of written contracts, bankruptcy law, and generations of common law, but there won’t be any profits for those stupid enough to invest to worry about. I am boycotting GM as an investment, and I am boycotting their products forever. I expect the vast majority of real Americans to do the same.


24 posted on 08/20/2010 8:42:11 AM PDT by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
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To: RS_Rider
Unfortunately, we (taxpayers) are likely going to be the biggest purchasers of this stock, they can’t let the IPO fail.

I thought the whole reason for selling these shares was to reduce the public ownership of GM...

'hack

25 posted on 08/20/2010 8:58:59 AM PDT by dynamitehack (Public employee unions should be abolished!!)
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To: Qbert
with many institutional investors wary of a company that is run by the government.

Um, shouldn't that be investors not needing to be institutionalized?

26 posted on 08/20/2010 9:19:42 AM PDT by cynwoody
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To: RS_Rider

“Unfortunately, we (taxpayers) are likely going to be the biggest purchasers of this stock, they can’t let the IPO fail.”

IPO cross that out and substitute union.


27 posted on 08/20/2010 9:20:05 AM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: CharacterCounts

“Banks and investment firms who have their soul owned by Obama, will be brought into the oval office and given their directions.”

You are right and the gauge of this will be how much Soros invests in it!


28 posted on 08/20/2010 9:21:37 AM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: IOWAfan
isn’t this where the stock holders got screwed during the bailoug and the unions got rewarded?

Somewhat. The stockholders didn't exactly get screwed. As stockholders, if the company fails, they should lose their equity. That's the way the free market is supposed to work.  Unfortunately, the government stepped in and decided that since they have guns and are willing to use them, that the law means nothing. They stole the existing equity of the bondholders and gave that to the union thugs (and others).

The rule of law means nothing to this government. The way the bondholders were screwed was a lot bigger deal than most people realize.

29 posted on 08/20/2010 9:24:34 AM PDT by zeugma (Ad Majorem Dei Gloriam)
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To: Pollster1

“Profiting off of the nationalized version of GM would be immoral when they are keeping $30B plus in taxpayer money and the bondholders were ripped off by executive fiat and in violation of written contracts, bankruptcy law, and generations of common law, but there won’t be any profits for those stupid enough to invest to worry about.”

Good point. This whole charade just feels “icky”. GM recently admitted in their IPO filing that their internal controls over financial reporting are materially weak as of a month ago- and yet they’re rushing this IPO before the elections to try to make Obama look like a savior, after all the corrupt things they did early on in wiping out the bondholders. It feels more like something they would do in the Soviet Union.

btw, I thought I saw somewhere somebody saying that the price of the shares would initially be around 140 dollars a share (!), but I could be wrong...


30 posted on 08/20/2010 9:53:19 AM PDT by Qbert
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