GM IPO Set; You Buying?

General Motors  announced today that it is filing a public offering of stock Nov. 18 and that the price of the common stock will be between $26 and $29 a share. The sale comes nearly two years since President George W. Bush first approved a bailout of the auto industry and 18 months after President Barack Obama sponsored a government-backed bankruptcy and ownership stake in GM and Chrysler.
 
The sale of nearly 365 million shares will raise as much as $10.6 billion for the company. The U.S. Treasury plans to sell a portion of its shares after the IPO, but it is unclear how much. Many analysts suggest the government will still lose money on the deal. One number mentioned today was a $131 share price for the government to break even.

No matter the balance sheet, the IPO will mark the beginning of the end of government ownership of GM, and it will put the company back on the free market. So the question remains: Would you buy GM stock?

Comments

I can't imagine buying stock in a company that was once owned by the shareholders, and then stolen by the government...

EXACTLY. They are selling stolen property and what is stopping them from stealing it again?

I've been forced to by GM since taxpayers bailed them out. Why would I want to give them more money? They're obviously not responsible with their own money if they need to be bailed out.

I'm a true American so I don't support GM. Go Ford, Honda, Toyota, Kia, and Subaru!

NO

Day trader will probably make some money, but in my pov, not a good stock for mid or long term.

- Corp uncertainty in leadership;
- UAW still there (when profit comes, more demands);
- US Gov't (Republicans) no longer favors this company;
- Chinese gov't currency pressure (potential rising cost);
- Product mix (still relies on big vehicles for profits);
- No long term strategy to cope with rising fuel mileage requirement; &
- MOST IMPORTANTLY, debt is too high, and past record was really bad (previous management style drove GM to bankruptcy, and there is no indication of change in such management style yet.

I think you're overlooking how rich you'll be after a Chinese [car?] company buys GM.

Chinese gov't already owns GM - where do u think the US gov't gets its money from, in order to buy GM in the bailout, as well as to pay the salary of all GM employees?

It is unlikely that a Chinese company will buy GM due to GM's relationship with US Gov't, UAW's opposition (potential), but more importantly, whatever GM knows in technology (unless there is some highly secret ones), China already knows thru' the Chery/GM joint venture.

Renault-Nissan has expressed big interests in buying GM stocks a month ago. But I seriously doubt that any of those problem will and can be addressed in this case.

Good grief, most posters would cut of their nose to spite their face. The childlike reasoning and incompetent stock analysis is embarrassing to read.

If you're into Auto, buy value instead. Look into auto parts suppliers in China instead to get the best of both worlds.
e.g. Companies like China XD Plastics Company Ltd. (CXDC) on the NASDAQ may fit in.
Just beware of Market Maker Manipulation though.

Yes, I probably would. They have managed to ditch the previous UAW contracts which were what really bankrupted them. They make good cars, but due to people like these jokers above me in the comments, the stock will be undervalued for a while.

You gotta be kidding! For those 480 people (as of right now who would buy stock), I've got a lovely bridge for sale cheap. (Trust me, I tried to be civil.)

The point behind the IPO is profitability, not giving money to a bailed out company. It's one thing to be angry, I am too, but it's another to be stupid. You have to separate the stock from the company and put personal feelings aside. Anyone in on the actual IPO WILL make money, that's already a given purely based on demand. Once the stock gets into the retail market, I would sell on the first day. Take the profit and move on. After a few weeks, it will cool down and profit taking will come in to play. That is where the real opportunity comes in - short GM, long Ford. Based on valuation and growth prospect, Ford should demand a higher premium to GM stock.

Have no respect for GM, or the way our Gov. bailed them out, got a lot of respect for Ford, they pulled themselves out by doing things right! Don't enable this kind of crap and unions which are breaking the backbone of this great country!

GM and the Unions that control them ought to be ashamed of themselves. I hope I never allow myself to ever buy a car made by GM!

People that buy GM are stupid and shouldn't enable this kind of BS. What a joke investors loose their money, then the taxpayers and China bail out GM, then they pull a new IPO, we're all stupid in America!