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Main Forums => Politics => Topic started by: Racehorse on November 18, 2010, 10:38:18 AM

Title: GM IPO
Post by: Racehorse on November 18, 2010, 10:38:18 AM
Full article at http://www.reuters.com/article/idUSN1828116920101118?pageNumber=1

Quote
Analysts still see challenges for GM, including the overhang of the U.S. government's post-IPO ownership stake.

Other investor concerns include continued losses in GM's European arm -- $1.3 billion over the past three quarters -- and contract talks next year with United Auto Workers.

Post-IPO, a union health care trust will keep 13 percent of GM shares with a board seat representing its interests.

UAW President Bob King said on Wednesday that he welcomed a high stock price but his workers would not offer new concessions next year.

Most of this article and all the other articles I read are all rosy and talking about how great the IPO is, but GM is making no promises to buy out the government stake and is selling what government shares it is selling at a loss to what they were purchased for.

Additionally, the bolded part above tells me that GM is not going to be changing any time soon. It's still government/union owned and operated. Obama gave a multi-billion dollar freebie to his buddies at the Union/Goldman/elsewhere at taxpayer expense. Sorry, I'm not buying that the IPO is a success and proof that the bailout was a good decision.
Title: Re: GM IPO
Post by: longeyes on November 18, 2010, 10:43:16 AM
There's been a culture shift.  What once was baseball, hot dogs, apple pie, and Chevrolet is now pro football, lattes, sushi, and Honda.  The nationalists will buy Ford, not Chevy.
Title: Re: GM IPO
Post by: AZRedhawk44 on November 18, 2010, 10:45:29 AM
The nationalists will buy Ford, not Chevy.

Ayup.

Been happening for a couple years now.
Title: Re: GM IPO
Post by: Racehorse on November 18, 2010, 10:48:19 AM
The lame thing is that I actually like some of GM's cars and would consider buying one. But with the current ownership structure, I can't in good conscience do that.
Title: Re: GM IPO
Post by: longeyes on November 18, 2010, 11:02:21 AM
Some of the cars look pretty good, but when you come down to laying out 30 grand (or more) you want a sure thing or as close as you can get to it.  GM needs to do what the Japanese did aeons ago: win on price until they regain confidence.
Title: Re: GM IPO
Post by: AZRedhawk44 on November 18, 2010, 11:05:49 AM
Some of the cars look pretty good, but when you come down to laying out 30 grand (or more) you want a sure thing or as close as you can get to it.  GM needs to do what the Japanese did aeons ago: win on price until they regain confidence.

The Japanese subsidize their low prices here with artificially inflated prices in their domestic car market, as well as tariffs on imported American cars.

They do the same thing but to the nth degree with rice.
Title: Re: GM IPO
Post by: brimic on November 18, 2010, 11:10:53 AM
I just saw on the MSN website a link that says "Jim Cramer:The GM deal is a winner."
That right there is enough to cast doubts on GM.

Quote
There's been a culture shift.  What once was baseball, hot dogs, apple pie, and Chevrolet is now pro football, lattes, sushi, and Honda.  The nationalists will buy Ford, not Chevy.
werd.
Title: Re: GM IPO
Post by: makattak on November 18, 2010, 11:11:55 AM
The Japanese subsidize their low prices here with artificially inflated prices in their domestic car market, as well as tariffs on imported American cars.

They do the same thing but to the nth degree with rice.

And Japan's been locked in negative, ultra-low, or no growth for going on 2 decades now.
Title: Re: GM IPO
Post by: HankB on November 18, 2010, 11:19:31 AM
The lame thing is that I actually like some of GM's cars and would consider buying one. But with the current ownership structure, I can't in good conscience do that.
With the government subsidy on (for example) the Chevy Volt, you ARE buying at least a piece of one, like it or not, with your taxes.

The UAW thanks you, and promises to divert some of your tax money to the 2012 Obama campaign.
Title: Re: GM IPO
Post by: Racehorse on November 18, 2010, 11:23:54 AM
With the government subsidy on (for example) the Chevy Volt, you ARE buying at least a piece of one, like it or not, with your taxes.

The UAW thanks you, and promises to divert some of your tax money to the 2012 Obama campaign.

Exactly, which is what ticks me off so much about all the glowing praise for the IPO.
Title: Re: GM IPO
Post by: AZRedhawk44 on November 18, 2010, 11:32:30 AM
http://www.youtube.com/watch?v=xvwTMZNWGuk
Title: Re: GM IPO
Post by: longeyes on November 18, 2010, 11:36:47 AM
My point was the roles are reversed.  If GM wants to get market share, they will have to do by price advantage, albeit by gov't help.  I'm not recommending they do that or even stay in business.  GM is a zombie enterprise.

The IPO is a great deal for the underwriters.  There will good cheer in the Hamptons this holiday season.
Title: Re: GM IPO
Post by: mtnbkr on November 18, 2010, 02:49:42 PM
The Japanese subsidize their low prices here

I wouldn't call Japanese prices, at least not on the big brands such as Toyota and Honda, low by any measurement.

Chris
Title: Re: GM IPO
Post by: Angel Eyes on November 18, 2010, 03:09:21 PM
http://www.youtube.com/watch?v=xvwTMZNWGuk

Okay, which one of you jackwagons left this comment?

Quote
My tax dollars at work. They could at least be topless.

Title: Re: GM IPO
Post by: SADShooter on November 18, 2010, 03:15:22 PM
I wish it had been me. My thought was: Did they get an NEA grant to produce the stupid brain-sapping schtick?
Title: Re: GM IPO
Post by: RevDisk on November 18, 2010, 03:35:38 PM
I'm curious.  Short of people speculating on short term IPO stock inflation, what moron investor this side of the funny farm would put their money in GM stock?





Disclosure:  I bought one stock prior to the government directed and "handled" bankrupcy.  Paid twice the amount for the commission as I did for the stock, it was solely to make a point. 
Title: Re: GM IPO
Post by: sanglant on November 18, 2010, 10:59:09 PM
who's running the pool on when they will confiscate the stock, and give the cash to the unions?
Title: Guangzhou Motors
Post by: longeyes on November 19, 2010, 11:06:07 AM
I don't know why you guys are complaining.  What could be better than an auto company run by Obama, the unions, and the Chinese, subsidized by the American taxpayer and used as a financial ATM by the worst on Wall Street?
Title: Re: GM IPO
Post by: Ben on November 20, 2010, 11:06:46 AM
I'm curious.  Short of people speculating on short term IPO stock inflation, what moron investor this side of the funny farm would put their money in GM stock?

That has been exactly what I've been wondering. I haven't seen positive recommendations to buy the stock on any of the investment sites I read. I'm wondering if it's just the rage among the "socially responsible stocks" crowd because of the Volt or people supporting the ideals of the current Administration? Though I would guess that as you mention, some high-risk speculators probably bought it.

At any rate, I can't figure how the stock is worth fifty bucks a share when Ford, who is outdoing GM in every way, is trading at $15.
Title: Re: GM IPO
Post by: zahc on November 20, 2010, 11:28:52 AM
The thing that angers me the most about the GM bailout is that their cars are so shitty, their designers so behind-the-curve, that they have deserved to go bankrupt for decades. The fact that they have been bailed out means that we are stuck with their crap instead of finally being rid of it.
Title: Re: GM IPO
Post by: French G. on November 20, 2010, 05:37:43 PM
I really want a GMC 3500 Duramax/Allison. I guess when the time/money comes it is used market or FORD!!! No news coverage of the stockholders who got hosed 18 months ago, must be nice to take their 23 billion and sell it to someone else.
Title: Re: GM IPO
Post by: longeyes on November 21, 2010, 06:07:47 PM
It takes a load of chutzpah to congratulate yourself for saving GM when what you really did was to sabotage time-honored principles of contract law in ways that make a mockery out of U.S. law.
Title: Re: GM IPO
Post by: MechAg94 on November 22, 2010, 10:11:09 AM
The thing that angers me the most about the GM bailout is that their cars are so shitty, their designers so behind-the-curve, that they have deserved to go bankrupt for decades. The fact that they have been bailed out means that we are stuck with their crap instead of finally being rid of it.
I don't know.  My 2003 GMC pickup is pretty well designed and has been extremely reliable.  I actually think some of their newest truck/SUV body styles are very good.  However, I won't buy Govt Motors.