Posted on 11/17/2010 6:13:26 PM PST by Nachum
When all the General Motors common stock in its initial public offering changes hands, the U.S. government will wind up $26.4 billion short of getting back the $50 billion it gave GM to get it through bankruptcy last year. But it also will have about 500 million shares left to sell. That means there's a possibility of recouping most, if not all, of the money.
Here's how the numbers work:
Original bailout: $50 billion.
GM repaid loan portion, $6.7 billion.
GM to buy back government preferred shares: $2.1 billion.
GM repayment of government interest and dividends: $700 million.
Total repayment before IPO: $9.5 billion.
What GM still owes before IPO: $40 billion.
Government likely to make $13.6 billion in IPO by selling 412 million of its 912 million common shares at $33 each. This assumes bankers exercise options for more shares.
(Excerpt) Read more at breitbart.com ...
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Do not buy a GM car— ever, This is communism— worker and government owned . No sale here. FORD is wonderful!!!God Bless free enterprise.
Not to mention what they owe the bondholders.
Yeah, but what about the GMAC bailouts?
eventually we will be writing off that $26 billion remaining after the IPO
Frankly, IMO, only the Chinese and fools will throw their Money into GM stock. zero ripped the stockholders off once and there’s nothing to keep him from doing it again. At $33/share, I think the stock is overvalued and will drop quickly after the IPO.
What about the special tax treatment GM is getting? If you factor that in, it looks like money laundering: money in the front door to placate the rubes and money out the back door to give the enterprise value.
What about the special tax treatment GM is getting? If you factor that in, it looks like money laundering: money in the front door to placate the rubes and money out the back door to give the enterprise value.
“Government likely to make $13.6 billion in IPO by selling 412 million of its 912 million common shares at $33 each. This assumes bankers exercise options for more shares.”
Ha ha, what a laugh. $33/share!!! Who in their right mind would pay such a sum. GM is penny stock class.
Any Bank that would purchase GM shares at $33 would show they care not a wit about their depositors money and said depositors should pull their accounts from any bank if such a deal were to occur.
Love my Nissan Titan! I bought it new in 2007 and I still love it!
Please, who are the idiots that are going to buy GM stock. GM will be bankrupt again within 3 years.
No one in their right mind will buy the stock or their vehicles.
A local father and son stock broker show on the radio is always gushing over Obama and GM’s IPO. Their clients are old senile union ny’ers.
Doea this include the interest too?
I wouldn't touch GM issues with a fork.
I suspect they might go up sharply, but only briefly, as the Obama shills try to wow us with false enthusiasm (we know better by now, Mister Obama.)
The number of short positions could be a key indicator.
Then, I suspect that in (days? weeks? months?) smart money will bail, stop loss orders will start clicking in, and the fools who bought and kept GM will have a loss, with no turnaround in sight.
Bright side? Yes, there is one.
Anyone losing money on GM stock might at least be happy that they didn't buy a VOLT.
(Note: I don't give investment advice, so if you buy GM and actually make money, good on ya.)
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"GM has about 54,000 UAW-represented hourly employees and nearly 400,000 UAW retirees"....and some of those are early retirements, they or their spouses may be collecting pension/health care benefits for what, 30 years?
At some point in American history that would have been considered a recipe for disaster(cough, social security)...now, not so much. Really?
I agree with a couple others on this forum...it's a juicy pump and dump stock. Soros and others of his ilk will buy heavily up front pushing the price up(QE2 will of course assist)...then(except the QE2'ers, AKA taxpayers)flush it when the time is right.
Guess who gets stuck holding the bag of sh it again?
I'm with you; GM is dead to me. I will not buy a new GM and give them money directly. I will not buy a used GM and support their resale value to indirectly make their new sales more attractive. Any GM product built after the corrupt Bailout is permanently off limits to me and my family, and I probably wouldn't buy an older GM either because it would appear to endorse their used vehicles and thus indirectly boost sales of post-Bailout GM products. Ford? They are very much on my shopping list. Eventually.
So when do we get our refund checks from GM?
That is because you got great quality and didn’t pay for a bloated union retirement.
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