U.S. Hurries to Sell GM Stake (double-digit multi billion dollar haircut as GM drops to post IPO low

[stockholmer]

Source: Wall Street Journal

"The U.S. government plans to sell a significant share of its remaining stake in General Motors Co. this summer despite the disappointing performance of the auto maker's stock, people familiar with the matter said.

A sale within the next several months would almost certainly mean U.S. taxpayers will take a loss on their $50 billion rescue of the Detroit auto maker in 2009.

To break even, the U.S. Treasury would need to sell its remaining stake—about 500 million shares—at $53 apiece. GM closed off 27 cents a share at $29.97 in 4 p.m. trading Monday on the New York Stock Exchange, hitting a new low since its $33-a-share November initial public offering....."



Read more: http://online.wsj.com/article/SB10001424052748703916004576271382418887092.html

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112 Hedge Funds Scream In Pain As GM Drops To Fresh Post-IPO Low


http://www.zerohedge.com/article/112-hedge-funds-scream-pain-gm-drops-fresh-post-ipo-low


"Nobody could have expected this. Certainly not the 112 hedge funds which hold GM stock on expectations the government, the Fed and GETCO would never let "that company" plunge this far. Next up: a congressional hearing for GETCO regarding charges of ponzi maintenance dereliction. As for the much touted "breakeven" on GM by the US government, the WSJ summarizes it best: "To break even, the U.S. Treasury would need to sell its remaining stake—about 500 million shares—at $53 apiece. GM closed off 27 cents a share at $29.97 in 4 p.m. trading Monday on the New York Stock Exchange, hitting a new low since its $33-a-share November initial public offering." Good luck with that: not even State Street can institute a short squeeze of such epic proportions..............."





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another wonderful outcome for the banksters who collected billions in fees for putting the 'deal' together, but the SHAFT for the US citizens and investors stupid enough to buy this POS fantasy

:thumbsdown:

[jimmyga]

1. Was always a bad investment

Now the workers are going to take it in the shorts because their med plans are funded by stock.

[Gman]

2. Here's a lesson in privatizing Social Security too

and what will eventually happen if they get their hands on the SS money.

[Psephos]

8. There is no "SS money"...

There is, however, a big load-lugger full of IOUs. The only way those will be repaid is from the general budget.

So much for government fiduciary responsibility. They're just as bad as the corporate thieves...in some ways worse, when you factor in sovereign immunity.

[stockholmer]

13. +1 for broaching the SS IOU subject, many think that because the 'trust fund' shows interest income....

that the actual backing fund monies actually exist, and is not just a cheap accounting parlour trick.

[Fool Count]

3. Who would have thought that selling massive amounts of stock

(or planning to sell massive amounts of stock and telling everyone about it) would make it go down.
Certainly not the US Goverment.

[Kokonoe]

4. 2013 Malibu is to be sold around the world.

http://www.youtube.com/watch?v=cO1Wd6GCP64&feature=player_embedded

cool video

[newblewtoo]

5. We are so screwed.

Would bankruptcy have been any better? I honestly don't know at this point. Anyone?

K&R +1

[FLPanhandle]

6. Why is Ford doing so well compared to GM?

At the depths of the financial crisis, Ford was selling at about $1/share. Today it's near $4.25 and their sales are fine.

What happened to GM? If Ford can do it, so should they.

[stockholmer]

7. Ford didn't take bailout money like GM, & isn't nearly as hurt by the collapsing US sales/economy

Ford is simply a better run company, and the US continuing erosion/transition from superpower to failed domestic economy is killing GM. Only 1/3 or so of Ford's sales are in the USA, versus GM, which relied up until the recent past for 60%+ of its total sales coming from within the American market.

Look at GM's US core marques: Chevrolet, Cadillac, Buick, and GMC. All but Chevy are based on (compared to the rest of the world) petrol-guzzlers. GM is a day late and a dollar short. Most of their foreign acquisitions ended in tears, and just from 2005 to 2009, they lost over $100 billion dollars. It is a joke that they claim profit for 2010, as this is simply due to huge tax breaks ($45 billion over 10 years that was part of the bailout) and accounting practices that 20 years ago would have been illegal.

When those tax breaks are factored in, the bailout cost was over $100 billion. The US, at the end of the day, is going to take a $60+ billion dollar loss on this pig of a stock/firm.

[Psephos]

9. That's the best less-than-ten-sentence analysis I've seen. n/t

[ingac70]

12. Too bad he was giving a stock quote for the WRONG company.

http://investing.money.msn.com/investments/stock-price?symbol=F

[Psephos]

14. Old Sufi saying:

"When a wise man points at the moon, fools look at his finger."

Stockholmer's comments about GM are quite on point, the clerical error about Ford's stock price notwithstanding.

Meanwhile, you've made more than a few cogent points yourself.

Not bad all around, considering that this is an amateur discussion forum.

[stockholmer]

15. I never gave a stock quote for Ford, that was another poster n/t

[ingac70]

10. Ford took out a boatload of loans before the credit markets went tits up.....

back around mid '06. I was working for them at the time. Do not mistake luck and timing as being "better run".

[ingac70]

11. Fords ticker symbol is F... their stock is $14.66....

FORD is the symbol for Forward Industries.