Skip to comments.GM IPO may be hard sell
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 GMs 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 ...
You want to fund GM’s liabilities then get into their IPO.
Given the companies record who would be stupid enough to buy stock??
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.
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.
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.
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?
“Its toxic stay away fromn this one. Theyre 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...
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?”
“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.....
Not to worry. The money will come from O’s stash.
“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...
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?
“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).
“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.
Banks and investment firms who have their soul owned by Obama, will be brought into the oval office and given their directions.
I would assume within days of the IPO.
“GM was taken from the bond holders at gunpoint and given to friends of the state.”
saw this descriptive phrase on an auto website
United Autoworker Union will garnish proceeds from this stock sale . Payback time.