GM raises stock price before today's IPO - but would you buy it?
General Motors is being reborn today as a public company thanks to a stock offering worth what looks like a record-setting $23 billion - a move that will end the government's role as majority shareholder after a $50 billion bailout.
But will Americans respond to it? Will you?
There's plenty of news coverage touting the company's rebirth and long-term value, following a near-catastropic collapse.
And there is plenty of speculation about the initial price of the new GM stock, where it will climb, and what it'll be worth to the US taxpayers (since all of us invested in the bailout).
Most of the initial stock investors will be institutional, not individual.
But all of the hype still raises the question here at AnnArbor.com: Would you buy a part of the new GM?
Comments
stunhsif
Thu, Nov 18, 2010 : 9 p.m.
As someone who has purchased or leased 10 "new" GM vehicles since 1996, I would never in a million years buy their stock at the price it opened at. GM has great products but they are still saddled with production costs that far outweight their competitors in the U.S. other than Ford Motor. Hyundai,Toyota and Honda are still in the "drivers seat" when it comes to growth and profits which is not good at all for this state. GM and Ford have not done enough to reduce their current cash burn. Ford is in big trouble moving forward regarding their "legacy" costs. Good Day, No Luck Needed
Erich Jensen
Thu, Nov 18, 2010 : 6:04 p.m.
Is anyone paying attention to how much GM borrowed and owes us, the American people? Congress paid out billions of dollars that may never get repaid, and the purchase of stock is a drop in this holey bucket!
glimmertwin
Thu, Nov 18, 2010 : 4:02 p.m.
I purchased a GM for the first time in 31 years last month. As far as I am concerned, I've done my part. I just hope they can make on their own this time. It's very strange - on one hand I want them to succeed and hope that they do, but on the other, I am disgusted about how poorly they obviously were managing their business.
Craig Lounsbury
Thu, Nov 18, 2010 : 10:55 a.m.
"Most of the initial stock investors will be institutional, not individual." at this point pretty much anybody can buy it. Its been trading 1/2 million to 3 million shares a minute since it settled down around 10AM.
PittsfieldTwp
Thu, Nov 18, 2010 : 10:35 a.m.
Overall, I am glad GM is doing better, especially glad for its employees. Will I buy the stock? Probably no more or less than I would by any other individual stock. More likely I will end up "owning" in my mutual fund mix. My current support of GM is recently purchasing a new GM car. First time in my life. My car buying decisions have always been based on buying the best in the category I want, and this time around, it was GM.
Jake C
Thu, Nov 18, 2010 : 10:15 a.m.
"But will Americans respond to it? Will you?" Do you mean to the stock offering or to the company in general? If you're asking about the stock offering, it really doesn't matter because like you said, the vast majority of the shares will be snapped up by institutional investors immediately. A better question might be: "Have you already bought, or do you plan to buy a GM car in the near future?" That's what will decide whether GM grows or fails again.