AP Source: GM to expand IPO by 31 percent

Started by walkstall, November 16, 2010, 09:50:12 PM

Previous topic - Next topic

walkstall

How much is this a Dog and Pony Show?
Just to get the stock up.   :-\


DETROIT — Investor demand for General Motors stock has been so strong that the company will expand its initial public offering by 31 percent, to 478 million common shares, a person briefed on the sale said Tuesday.

The move, coupled with an expected stock price of $33 per share, brings the U.S. government closer to getting back the $50 billion it spent bailing out GM last year. But depending on how GM performs in the next few years, taxpayers could still come up short.

If the government sells 412 million shares for $33 each, it will get $13.6 billion. It will still have about 500 million shares, or about 33 percent of GM. It would have to sell them for about $53 a share, or $26.4 billion, for taxpayers to get their $50 billion back.

GM says it will repay the government $9.5 billion this year, not including money from the IPO.

The increased number of shares could make GM's IPO on Thursday the largest in history for a U.S.-based company. If GM's sale of preferred shares is included, the offering could have a total value of over $22 billion, topping Visa Inc.'s $19.7 billion IPO in 2008, according to the IPO tracking firm Dealogic. It could even surpass Agricultural Bank of China's $22.1 billion offering in July to become largest IPO in the world.

Demand for GM stock was so heavy that GM's bankers stopped taking orders for the sale on Tuesday afternoon after essentially running out of shares to sell, according to the person, who asked not to be identified because he is not authorized to speak publicly about the sale.

More
A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

Always remember "Feelings Aren't Facts."

tbone0106

This whole thing is a perfect example of the rotten, putrid influence of government in private affairs. The GM bailout seems to be the taxpayers' gift that just keeps on giving.

Sure, GM's impending IPO looks good. GM (stands for Government Motors) doesn't pay taxes any more. Maybe a trick they learned from Timmy Geithner?

http://online.wsj.com/article/SB10001424052748704462704575590642149103202.html

AmericanFlyer

$33.00 a share for a company that would have gone bankrupt if not for the federal government?  I was told by a stock market "guru" many years ago to NEVER BUY AUTOMOBILE STOCKS.  Period. 

The LAST thing I would invest my money in is GM stock, not to mention any OTHER stocks.  A complete fool's play.

walkstall

Quote from: AmericanFlyer on November 17, 2010, 09:08:12 AM
$33.00 a share for a company that would have gone bankrupt if not for the federal government?  I was told by a stock market "guru" many years ago to NEVER BUY AUTOMOBILE STOCKS.  Period. 

The LAST thing I would invest my money in is GM stock, not to mention any OTHER stocks.  A complete fool's play.


Hmmm.... I have been making good money in the stock market for over 55 years.  Ya just have to "Know When to Hold Them, Know When to Fold Them".

No I would not invest in GM.  But I do love my 2003 2500 Dodge Ram Turbo Diesel. After that the mileage drop way down.  I get 21 to 25 miles per gal if I
not bucking the a wind of 30mph. 
A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

Always remember "Feelings Aren't Facts."

AmericanFlyer

Quote from: walkstall on November 17, 2010, 08:26:53 PM

Hmmm.... I have been making good money in the stock market for over 55 years.  Ya just have to "Know When to Hold Them, Know When to Fold Them".

No I would not invest in GM.  But I do love my 2003 2500 Dodge Ram Turbo Diesel. After that the mileage drop way down.  I get 21 to 25 miles per gal if I
not bucking the a wind of 30mph.

I made a boatload of money on Sirius Satellite Radio several years ago, so I am not "anti" stock market.  I am simply recommending that to invest in the stock market TODAY is a fool's play. 

The stock market is manipulated by a bunch of punk ass computer geeks who drive individual stock prices up and down in a matter of SECONDS.  These people have taken the whole "buy low, sell high" mantra to a whole new level.

Then, of course, there are the Goldman Sachs of the world, who have infiltrated the highest levels of the federal government and basically OWN this country.

Cryptic Bert

Well this is one I think I got right. IPO is a good place to make a quick profit. I didn't see that with GM. There is little or no reason to invest or buy the stock long term. Few did and that may have depressed the price. It was initially offered at $33 and closed at $34. Now Obama and company are bragging \about the money GM made today and that the Public is getting it's money back. What he isn't telling us is that GM stock needs to rise to about $52 to pay back all the tax payer money. With the Volt being the new GM flagship I don't see that happening.

Needless to say I didn't touch it.