Posted on 06/27/2005 7:48:27 PM PDT by Milwaukee_Guy
General Motors Bars Senior Executives From Buying, Selling Company Stock Indefinitely
DETROIT (AP) -- General Motors Corp. has forbidden senior executives and other employees with access to internal financial information from buying or selling company stock indefinitely, a spokeswoman for the automaker said Monday.
GM spokeswoman Toni Simonetti said a memo was sent to senior executives May 24 barring them and some of their employees from buying or selling stock. Simonetti said she didn't know how many people were affected, but the company has about 400 senior executives.
Simonetti said GM regularly has blackout periods when employees aren't supposed to buy or sell shares, such as before quarterly earnings announcements. But this one is unusual because it's indefinite and was put in place because the company has declined to update its full-year earnings forecast since April.
"What's notable in this one is that it's been mandated right now because of the lack of financial guidance in the public domain," Simonetti said.
excepted, full story at ,
http://biz.yahoo.com/ap/050627/gm_executive_trading.html?.v=2
(Excerpt) Read more at biz.yahoo.com ...
Chilling quotes from the article,
"...said a memo was sent to senior executives May 24 barring them and some of their employees from buying or selling stock."
Why are we hearing about this well over a month after the fact?
"...because the company has declined to update its full-year earnings forecast since April."
It's so bad we not going to talk about it?
I see a desperate effort to keep the rats from jumping off a sinking ship.
I foresee a great big selloff tomorrow, and a big dip in the DOW.
You're not selling squat if your a GM executive!
Yup, but everyone else will.
This was announced yesterday, only a small sell off, because people don't know how bad things are. Also they are hoping the new "employee discount" for everyone will boost next quarters numbers.
Wonder how that compares to Toyota.
"I foresee a great big selloff tomorrow, and a big dip in the DOW."
Add to that the SEC probe of IBM announced after the close and we could see the DJIA below 10k.
I guess the employee discount didn't help move all that many vehicles.
No wonder the company is in dire financial straights.
The employee discount scam is just plain silly. Go to http://www.edmunds.com and one can see that almost any car from the "Big 3" can be had for only hundreds of dollars above invoice. That's 3, 4, 5 or 6 thousand dollars off of MSRPdepending on the exact model. The employee discount thing is only a grand or two off.
ping.
Seems like I heard sales for May were up. However, I travel by car all over the country. In the past month I have seen a huge buildup of large vehicles on all lots that I have passed. One of those that make you go..Hmmmmm. My statement is anecdotal only of course, but I believe it to be true.
I was talking to a dealer about the employee discount. In his opinion, it has succeeded beyond all expectations. That being said, I don't know how it will reflect in profitability for GM.
I wonder how many millions it takes to pay them?
"I foresee a great big selloff tomorrow, and a big dip in the DOW."
"Add to that the SEC probe of IBM announced after the close and we could see the DJIA below 10k."
As a GM retiree or as a major non executive stock holder don't you just -have- to drop the stock now?
If nothing else, put the money into cash and wait to get in once the stock takes a hit and starts to come back in weeks, months or years?
Why would you actually hang onto it?
Enough people do not remember the lessons from ENRON.
but the company has about 400 senior executives.
They even have a Vice President of Headrests. And if you call, the secretary will ask if you want drivers side or passenger side. (old joke)
"Enough people do not remember the lessons from ENRON."
You got that right!
If you pay any more than invoice for an American car, you are getting ripped off. The dealer can make his profit off of the holdbacks even if he sells below invoice. If he wants to increase his profit, he can try to sell you some floor mats.
Best time to shop is at the end of the month at the end of the model year.
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