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GM is going Public very soon..............


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WOW, they are pumping up the Stock before releasing it, claiming $50Billion but not enough to pay back the Government???? :headscratch: Just how much did the Government give them?

 

http://news.yahoo.com/s/ap/20101116/ap_on_bi_ge/us_gm_ipo

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RUN, do not walk, from the IPO. The initial day will be heavily traded. Some stocks have had a volume that exceeds the total available shares (meaning, shares changed hands more than once during the trading session). I expect that to happen. Unless you're a day trader don't get close. And your piddly little shares don't count in the trades where millions will move in one trade.

 

If you're looking at it as a long term investment wait for it to reach a real market value. That can be as little as 2-3 days or several months.

 

No matter what, the shares will drop after the IPO. I'd be willing to bet a 6-pack of Budweiser on it. :)

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RUN, do not walk, from the IPO. The initial day will be heavily traded. Some stocks have had a volume that exceeds the total available shares (meaning, shares changed hands more than once during the trading session). I expect that to happen. Unless you're a day trader don't get close. And your piddly little shares don't count in the trades where millions will move in one trade.

 

If you're looking at it as a long term investment wait for it to reach a real market value. That can be as little as 2-3 days or several months.

 

No matter what, the shares will drop after the IPO. I'd be willing to bet a 6-pack of Budweiser on it. :)

 

Make it a sixer of Corona, and you'll have some takers!!! :hysterical:

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RUN, do not walk, from the IPO. The initial day will be heavily traded. Some stocks have had a volume that exceeds the total available shares (meaning, shares changed hands more than once during the trading session). I expect that to happen. Unless you're a day trader don't get close. And your piddly little shares don't count in the trades where millions will move in one trade.

 

If you're looking at it as a long term investment wait for it to reach a real market value. That can be as little as 2-3 days or several months.

 

No matter what, the shares will drop after the IPO. I'd be willing to bet a 6-pack of Budweiser on it. :)

 

 

Good call Tony. I'm of the same opinion.

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China is behind it all- makes you wonder what's going to happen next

 

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/13/AR2010111303784.html?wprss=rss_print/asection

 

 

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Edited by FordFan1
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China is behind it all- makes you wonder what's going to happen next

 

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/13/AR2010111303784.html?wprss=rss_print/asection

 

 

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I was thinking the same thing...........................

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GM was given $49.5 billion by the government. GM has have already paid back $9.5B.

 

GM hopes to sell 365 million shares tomorrow which will lower their ownership from 61% to 35%. There will be tremendous pressure on the stock as the government unloads those additional shares in the future. The UAW and the Canadian government will also be selling.

 

RUN, do not walk, from the IPO. The initial day will be heavily traded.

I agree. I wouldn't buy one share.

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GM was given $49.5 billion by the government. GM has have already paid back $9.5B.

 

GM hopes to sell 365 million shares tomorrow which will lower their ownership from 61% to 35%. There will be tremendous pressure on the stock as the government unloads those additional shares in the future. The UAW and the Canadian government will also be selling.

 

 

I agree. I wouldn't buy one share.

 

 

Well, I might buy one to have a framed certificate. Pity is it'd probably have a Cr**maro on it. Maybe if it was a '57 Belair.

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Goverment Motors ? who cares................

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Well, I might buy one to have a framed certificate. Pity is it'd probably have a Cr**maro on it. Maybe if it was a '57 Belair.

 

 

I have some of the old stock certificates from the old GM. My wife's granddad gave her shares many years ago. I managed to convince her to sell most of them at $50-$60 back around 2003 when GM was doing well. She insisted on keeping some shares due to emotional reasons. They are worth more now as a collector item after GM was forced in bankruptcy.

 

Equity stockholders, preferred stockholders, many secured bondholders, and all unsecured bondholders were wiped out of billions of dollars by the quick government-forced bankruptcy. I doubt they'll be getting back in.

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It will be offered at $33/share. Crazy!! But as my wife reminds me, it's "worth" is whatever people are willing to pay. So, I guess will soon find out what it's "worth".

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China is behind it all- makes you wonder what's going to happen next

 

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/13/AR2010111303784.html?wprss=rss_print/asection

 

 

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So, ilmor and Tes, and you other financial type guys...try to help me understand this turn of events.

 

By purchasing Government Motors stock, does that mean in some sort of twisted way, that you will now have stock indirectly in those Chinese banks??? I'm actually being serious when I ask.

 

Chris

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So, ilmor and Tes, and you other financial type guys...try to help me understand this turn of events.

 

By purchasing Government Motors stock, does that mean in some sort of twisted way, that you will now have stock indirectly in those Chinese banks??? I'm actually being serious when I ask.

 

Chris

 

WELL............I am hoping and PRAYING that the Money goes towards the Dept. BUT, I will bet Dollars to Donuts that it WON'T.... :headscratch:

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So, ilmor and Tes, and you other financial type guys...try to help me understand this turn of events.

 

By purchasing Government Motors stock, does that mean in some sort of twisted way, that you will now have stock indirectly in those Chinese banks??? I'm actually being serious when I ask.

 

Chris

 

 

Chris, these things get so convoluted and complicated that I doubt there's any way of knowing, and for every one story someone else will have a different one...however...the Chinese are a major financial player and it would be highly likely that they have involvement in here somewhere to a large extent.

 

Another interesting little tidbit I read today. The Financial Times calculates that GM shares will sell for 11.5 times 2010 earnings. That compares to 8.1 times for Ford.

 

One financial writer I follow suggests that, if one is betting on auto stocks, it would be a much better investment to buy auto industry supplier Johnson Controls (JCI) at $33, if it comes down to that price, than to buy GM at $33, for several reasons.

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Thanks guys...I notice the two of ya's usually keep us up to date on all the financial news! :salute:

 

 

Well....I can only DREAM about making Money.....................................As Broke as I am, thats all I can do.......... :hysterical:

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OK, Today is the Big Day for GM. They are going to sell Shares of Common Stock for $32.00 each BUT, they will offer 100M Shares of Prefered Stock for $50.00 each....... :headscratch: What is the difference??

 

http://www.comcast.net/articles/news-general/20101116/US.GM.IPO/

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My wife and I have a financial guy still in AZ. He has ALWAYS told me to steer clear from ANY automotive stock, as they are dangerous. He knows me well, and knows that I am a car guy. So for many years in the early days, I always wanted to buy Ford or GM, I'm talking long before the bankruptcy crap. He wouldn't let me. Then the meltdown came, and he told me so!

 

My question today is, still the same thought process??? I wouldn't buy GM personally, just because I wouldn't want to support them through the government...but I would love to buy some FORD, seeing the great things they and Mulally are doing right now!

 

Hmmmmmmmmmmm...

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An interesting excerpt from an article I read this morning...

 

Controls 'Not Effective'

 

In an August filing, GM laid out how it has performed since emerging from bankruptcy. The company earned $2.2 billion in the first half of this year—and $4.2 billion if you add in the third quarter.

 

That translates into a profit margin of 4.25% on $98.8 billion in revenue through the first three quarters of 2010. Ford Motor Co. is nearly twice as profitable.

 

GM also noted that it wasn't finished with restructuring. In August, the company was culling 700 U.S. dealers from its sales network. The company warned that the move could further erode its market share in the U.S. which stood at 19.3% through October, down from 21% during the same period a year earlier, according to motorintelligence.com.

 

Contrast that with Ford, which increased market share to 16.6% from 15.8% during the same period.

 

Then, of course, there are all those looming costs. GM warned that it may have to make "significant contributions" to its U.S. defined-pension fund. As of the August filing, the fund was underfunded by $17 billion. Ford says its pension funds are underfunded by about $15 billion.

 

Last but not least is the issue of GM's internal financial controls. Deep in the fine print of its prospectus was this: "We have determined that our disclosure controls and procedures and our internal control over financial reporting are currently not effective. The lack of effective internal controls could materially adversely affect our financial condition and ability to carry out our business plan."

 

GM shares rose in their first day of trading but are they a good long-term investment? David Weidner explains to Simon Constbale his view on the subject.

 

In other words, GM essentially said all the numbers used to tout the company's success are to be taken with a grain of salt—and that is putting it lightly. It could be a red flag or a promise of red ink. Who knows?

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