Posted on 11/15/2010 2:47:41 PM PST by fight_truth_decay
4:47 p.m. | Updated General Motors is looking to price shares in its initial public offering to $32 to $33, higher than the previously estimated price range of $26 to $29, people close to the matter tell DealBook.
The size of the common stock offering will remain the same, meaning that G.M. could raise more than $11.8 billion at the midpoint of the new price range. The company is also expected to raise the amount of money it expects to raise from selling preferred shares to about $4 billion from $3 billion, one of these people added.
The decision to move the price range up was made on Monday afternoon, this person said, and the changes could be disclosed in a regulatory filing as soon as Tuesday morning. Books for the offering are set to close Tuesday afternoon, and G.M. shares will be priced on Wednesday.
(Excerpt) Read more at dealbook.nytimes.com ...
Anyone who buys into this is a fool and will lose his/her money.
Yes, by all means, piss away a bunch of money on a ‘stock’ issued froma company that sold out its prime bond holders, surrendered it to Obama and the UAW health plan, AND WILL DO SO AGAIN IN A NEW YORK MINUTE when they piss away what you paid for their worthless bonds.....yes, by all means...
Anyone who buys into this is a fool and will lose his/her money.
Not even with the decimal point moved two places to the left.
I’ve seen a couple of (very!) independent analyses that peg the proper share price for a GM IPO at between $1.60 and $2.05...and that’s WITH some rather generous assumptions about debt restructuring, contract concessions and future auto sales.
A great confluence between two trains of thought: (i) there’s a sucker born every minute, and (ii) there is no way that GM and the UAW are going to be cut loose from the federal teat anytime soon.
Notice how NOTHING is every said about Chrysler? An even more hopeless government motor - GM is being used as the poster child for the “success” of the bailouts. No problem - just us taxpayers who are stuck.
“proper share price for a GM IPO”
What will be the “proper” price in three years when they need another bailout and hopefully there is no congress stupid enough to do it?
When they take the full blown Chapter 7 that should have happened last year, I believe the “proper” price will be -zilch!
Don’t buy now, wait a month or so until it hits the penny stock list.
Doubt that there will be any long term investors. Just those who want to make a get in-get out quick buck. And, there may be a panic sell off if it appears that the stock is tanking. Certainly not a long term investment.
hey I remember when lehman brothers hit the penny stock range. I think I made twenty bucks screwing with it.
Given GM’s inept management and corrupt unions, shouldn’t the stock price be 32 or 33 cents - not dollars?
Is there an 'H' please?
“(Zerobama — a phony and a prick, therefore a dildo.) “
D*mn, that’s brilliant.
And Soros is heavily into Monsanto, as reported on Bloomberg totdy.
No can accurately price this since GM admits in the prospectus you can’t trust their books.
No one will buy it, so the Fed will, and call it “Quantitative Investing”.
'Sources' familiar with the upcoming IPO say there are orders for 60-billion-dollars worth of common GM stock.
Probable buyers include GM's Chinese automaker partner SAIC and investment funds from the Middle East. That could create controversy for the IPO's largest seller, the U.S. Treasury, which is planning to use the sale to lower its stake in GM from 60.8% to slightly more than 40%. The treasury has said that some foreign investors would be allowed, but consumer advocate and former presidential candidate Ralph Nader cosigned a letter last week to President Barack Obama, urging him to suspend the IPO, partially because of the need to keep investment in the U.S. Nader was also concerned that the government plans to sell part of its stake at a loss. The government needs to average $43.67 per share to break even on its $50-billion investment in GM, above the likely range. The treasury is hoping GM's stock will grow in value over the coming months and years so it can make more money when it sells the rest of its shares.
Sources say..........
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