Posted on 09/22/2010 5:51:01 PM PDT by 10Ring
In order for taxpayers to recoup their $49.5 billion investment in General Motors, the U.S. government will have to sell its stake in the automaker at an average selling price of $133.78 per share, according to report issued by officials overseeing the Troubled Asset Relief Program.
The report, originally reported by The Wall Street Journal, shows it's quite unlikely that taxpayers will ever earn all their money back for investing in GM. The automaker’s stock never reached such levels in its pre-bankruptcy period, when GM had more brands, robust profits and a large auto-finance division.
TARP officials and the Journal said that GM would have to achieve a market capitalization of around $70 billion in order for taxpayers to recoup their investment, a level that’s considerably higher than Ford (F: 12.38 ,-0.13 ,-1.04%) or Chrysler. That market cap would only be exceeded by Toyota (TM: 71.51 ,-0.11 ,-0.15%), whose market capitalization is currently around $113 billion.
(Excerpt) Read more at foxbusiness.com ...
Sell those IPO derivatives to unsuspecting Chinese. I’m sure the communists don’t mind propping up the American neo-fascists.
WORKERS OF THE WORLD UNITE!
obvious question not answered...so, where are they today?
Well, GM is not gonna do it on my $$s. My dad’s company was a major supplier to Chevrolet Motor Co. from the ‘20s through the ‘70s, and I grew up with intense GM brand loyalty.
I’ve bought a fleet or Chevys over the years (’64 Corvair, ‘68 Impala, ‘84 S-10, ‘84 Blazer, etc.)
Currently own an ‘80 Camaro Z-28, ‘89 S-10, ‘99 Malibu, ‘01 Blazer. No more Gummn’t Motors for me - we bought a 2010 Ford F-250 Diesel 4WD a few months ago. Love it.
Union owned companies generally are not good investments.
I would bet a lot of pensions will get their arms twisted to buy this bag of s**t. Oddly - anyone who buys this will breach their fiduciary duty by buying a bag of UAW/Obama crap.
Well not exactly. The old shares I think are still there under bankrupt ticker. They still trade for pennies. The new shares supposedly will go public in the near future. The old shares will be finally wiped out then but the old shares are worthless.
They want to do the IPO (initial public offering) but who is there sane mind would buy stock in an auto company ownmed by the UAW and an Islamo Marxist government caleed Zimbabwe/USA?
So they are trying to figure out a way to go public because they know it will flop.
No fool will buy it. Everybody and their brother will want to short it.
Making an electric car that will go 40 miles without being charged should make that stock sell fast.
It’s easy: Let’s take the first $50 Billion. Without us, we would not have a GM
The IPO’s in November. I can’t wait...right after the elections. But, yeah fat chance in heck the price gets anywhere near $134...the stock never approached that in the best times. Hooray unions.
Most companies generally split their stock before it gets up to $134 so it doesn't surprise me that it has never reached that price per share, nor does it need to reach that price in order for the government to break even if the stock splits.
You noticed that too?
Guess even Fox has been persuaded not to distribute bad Obama obvious news...
This is amazing. I’ve bought some speculative stocks but this is worse than any of them. GM needs earnings growth an order of magnitude beyond anything Apple is producing.
Bankruptcy, properly executed, would have protected more people all around than this Obamanation.
I will never buy a car from these communists.
There is no way an automotive manufacturing company can achieve a return on capital anywhere close to Apple. Ford is run very well by comparision and their return on assets is 1.5% versus about 11% for Apple.
BMW and Porsche are probably the most profitable auto companies in the world. Maybe Ferrari too. GM would have to be as well managed as those companies to get near the market capitalization to payback the public.
Considering the UAW is running the show and that the IPO paperwork said they cannot calculate profitability because the internal controls are so screwed up then it is impossible.
This is British Leyland Part 2.
The tax payers will be willing to call it even when Obama’s political agenda has been neutralized.
Ford shares go for $12.38. I doubt GM is getting anywhere near $20 anytime soon. The govt needs to sell the shares to recoup the $50 billion TARP investment...how can they wait around for the stock to split? Sell 50% in Nov and hope it rises enough to cover the difference. Not making sense.
It’s a loser all the way round and now Barofsky is investigating their purchase of Americredit at a 25% premium. GM bought Americredit with TARP money. Boy, I just love this new GM...lol.
i won’t be buying anything from gov’t motors
and until the US is back to where it’s supposed to be, i won’t buy American as often as possible. why? because i do not want the progressives bs to be supported by the capitalistic machine of the US. therefore, i will do what i can to deprive that machine of my money.
the worse the economy gets, the more likely we are to get back to where we’re supposed to be
short term pain... long term gain
How about if the US walks into GM and Takes every cent that they intend to donate politically, and return that money to the Taxpayer.
And that's a long, long time.
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