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 ...
Trade it any way you like, m’friend...and my best wishes to you. I won’t be playing, except on the short side.
My fear is that the Feds will continue to throw good money after bad and keep pumping up GM.
Have GM revamped their business to be competitive? Apparently, not.
By the way, what’s a trader like you doing in a place like Missouri? (I don’t have anything against MO, it’s just not the best place to rub shoulders with traders!)
My father lived his last years of his life in St. Louis County (NOT St. Louis City, look up the history, ok). He was born and raised American, and, if I may say so, arguably THE classic American citizen of 1955.
To answer your question directly: 1) I am not a day-trader, therefore I have little or no advantage to be gained in trading options in/near Chicago, and 2) A gracious G-d willing, I shall be doing my trading in 2012 from outside the US.
While I love the United States, I have lived -- not once but twice -- under a state socialist medical regime. The vaunted UK "National Health (cough) System" almost killed me, by dint of the sheer stupidity born of bureaucracy gone mad, when I was a few days short of 5 years old in 1956.
You may take it upon the VERY best authority that no goobermint, ever again, will have control over my health and health care.
An outsider Trading in an IPO with for a quick sale, burns the bridge for their next possible IPO. THIS IS NOT like the dotcom startups IPOing in 1999 for the next big thing.
These companies going the route of the IPO which is not made in comparison are only doing so because they have to— new venture capital is difficult to find, the companies are burning cash and getting financing from the stock market seems the last best solution. When the government has its bulls-eye painted on the backs of ALL business, investors shy away. When living the American Dream is punishable by more taxes and/or more regulation —it's wise to proceed with caution.
Hollywood is doing their part to drive up the Government Motors stock.
Canadian auto journalists pick their cars of the year
by Jeff Glucker (RSS feed) on Nov 1st 2010
AJAC Test Fest Category Winners Announced
Oct 29, 2010
Best New Small Car (under $21K)
Ford Fiesta
Best New Small Car (over $21K)
Chevrolet Cruze
Best New Family Car (under $30K)
Volkswagen Jetta TDI Clean Diesel
Best New Family Car (over $30K)
Buick Regal
Best New Luxury Car (over $50K)
BMW 5 Series Sedan
Best New Prestige Car (over $75K)
Porsche 911 Turbo S
Best New Sports/Performance Car
Cadillac CTS-V Coupe
Best New Minivan
Toyota Sienna
Best New SUV/CUV (under $35K)
Hyundai Tucson
Best New SUV/CUV (under $50K)
Ford Edge
Best New SUV/CUV (over $50K)
Volkswagen Touareg
http://www.autoblog.com/2010/11/01/canadian-auto-journalists-pick-their-cars-of-the-year/
No, not a trader. But options traders need to have an idea of direction. I don’t know how you can come up with any rational idea which way it will go. For one thing the Federal Gov still will own a big block. There are a million ways for them to manipulate the price from selling from their hoard to high officials talking the stock up or down.
I think this one is like playing roulette in an unlicensed casino.
This turkey rates to be a VERY long haul. And, just btw, companies aren't burning cash at all; they're hoarding it, for the very reason you cited -- goobermint intrusiveness.
Good trading to you!
You may very well be correct. I’m just going to wait for the options to open (generally a month or so after the IPO, in the case of a ‘name’ stock).
If, as seems likely, this IPO attracts a lot of interest (thank you, Mr. Barnum!), the IVs of the oppies will equally likely be skewed higher for at least a while. This will present opportunities in both calendar spreads and diagonals, and to some extent ratio-spreads and ratio-writes.
I’ll take your word for it. Profits to you my friend.
People always point to Google as an example of why IPOs are such a good deal. But I can point to at least ten times that many that went the other way. And I have huge doubts about GM.
They've made money during the past year - but only after receiving every break and forgiveness in the book. Now it's “stand on your own two feet time.” And I don't think the climate in Washington will again support pulling their a$$ out of the fire. If they go down again, it will be for the count.
Before I'd be willing to put a penny on that horse, I'm going to have to see it successfully run on its own for a couple of years.
So why go IPO for the long haul when you can buy it at the next dip and there is always a next dip, sell off and a next dip.....
Short sales are blamed for exacerbating the declining market movements and regulators will tighten rules.
Ever read "Trading with the Enemy" written employee [Nick Maier] of "Hedge funder" Jim Cramer's Wall Street.? Cramer never disputed the manipulation of say Hannafords to sell short..or the book itself for that matter. But Martha Stewart gets jail time for..her probably coached story about some stop-loss order. She should have just said nothing at all and received no jail time. But now I am sidetracked!!
Interesting note: Diwali India
Coal India IPO after November 3 fuelled the Diwali jump after an announcement of lifting some US 'government' curbs on exports of sensitive technology to India
I wonder how some "insiders" in Washington fared on that one? Another story in of itself, that burns me. But again there is always another Martha Stewart to cast into the limelight.
Thanks & Good Luck
At the moment, I have exactly zero share positions. Not trading anything but option spreads, which (depending on the spread, of course) can be largely immune from the nonsense of the day-to-day marketplace.
I learned long ago (and have written quite a bit about the topic) that the retail trader is absolutely at the bottom of the information food chain, and should therefore ignore -- completely -- what the insiders and the 'smart money' are said to be doing at any given time.
Thanks for your experienced/seasoned responses.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.