Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.
Right now, the government's GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share. However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.
It's doubtful that the Obama administration would attempt to sell off the government's massive position in GM while the stock price is falling. It would be too embarrassing politically. Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.
http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/
Quote from: Gaspar on August 17, 2012, 09:11:34 AM
Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.
Right now, the government's GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share. However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.
It's doubtful that the Obama administration would attempt to sell off the government's massive position in GM while the stock price is falling. It would be too embarrassing politically. Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.
http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/
I am glad to see that you are accepting that Obama will have a second term. I mean, you stopped quoting when you had your point across, but let me continue.
GM is unlikely to hit the wall before the election, but, given current trends, the company could easily do so again before the end of a second Obama term.
And if you read the article you will see that GM had its high point under the leadership of the car czar. GM needs a slam dunk CEO. Much like Fords move to Mullaly, GM needs someone innovative. Dan Akerson is not filling the bill.
Gaspar's famous on TN for his confusion and horrible prognostication in the market.
I'd imagine he's incredibly bad at choosing an article to prove whatever he decides to puke out at the moment.
I suggest we all move on, return to our corners and come out bitching about the candidate we've decided to like least.
LOL! . . .and I didn't post a single word, except the article. You guys are good> ::)
Keep moving
Isn't there something about, "sin of omission"?
Moving along.
Glad GM is still alive and producing Corvettes. Had one pass me on the turnpike yesterday. Poetry in motion.
Quote from: AquaMan on August 17, 2012, 10:12:56 AM
Poetry in motion.
The most ugly sounding and forced poetry on the planet, but still poetry. ;D
Quote from: nathanm on August 17, 2012, 01:52:08 PM
The most ugly sounding and forced poetry on the planet, but still poetry. ;D
Well, it is machinery. I couldn't hear it for the hum of my little Kia, but as it approached in my mirror I mistook it for a European car of much finer heritage, a Ferrari or Maserati. It was a sweet looking ride.
Funny, Romney had nothing to do with the GM bailout, but is criticized for taking a stance against, although he could do nothing about. I wonder what would be said if he supported it?
Quote from: erfalf on August 17, 2012, 02:47:06 PM
Funny, Romney had nothing to do with the GM bailout, but is criticized for taking a stance against, although he could do nothing about. I wonder what would be said if he supported it?
Hey what ever delusion helps them stomach a vote for Obama...
Quote from: Townsend on August 17, 2012, 09:49:46 AM
Gaspar's famous on TN for his confusion and horrible prognostication in the market.
General Motors stock went up 3.2% today.
I want gaspar to tell me what stocks will perform poorly every day. I will then sell my collection of commemorative plates and invest every penny in those stocks.
Quote from: erfalf on August 17, 2012, 02:47:06 PM
Funny, Romney had nothing to do with the GM bailout
Funny you bring that up, since nobody even mentioned Romney in this thread until you did.
Quote from: RecycleMichael on August 17, 2012, 03:58:59 PM
General Motors stock went up 3.2% today.
I want gaspar to tell me what stocks will perform poorly every day. I will then sell my collection of commemorative plates and invest every penny in those stocks.
Has noting to do with day to day. Has everything to do with performance over time compared to the rest of the market. It is failing, and will require another bailout. Paint it as you like, but unless a bunch of folks go out and buy new Chevys all of a sudden, it's trajectory will continue. If it is allowed to fail, it will likely be broken up into several viable entities and the garbage will be sold off. If it receives another bailout, it confirms the failure of the investment, and will likely become a full time government dependent, a true "You did not build this" business. At that point the government can choose to continue diverting tax payer money to prop it up, or can cut it up, and sell it off.
It's an excellent example of the government acting as a really really stupid private equity firm!
(http://farm9.staticflickr.com/8430/7804155418_91ed3afea7_z.jpg)
Quote from: Gaspar on August 17, 2012, 04:14:30 PM
It's an excellent example of the government acting as a really really stupid private equity firm!
Interesting take. I've thought that before. So Obama is for private equity as long as he is the one making the investment decisions.
Quote from: erfalf on August 17, 2012, 04:20:35 PM
Interesting take. I've thought that before. So Obama is for private equity as long as he is the one making the investment decisions.
If you plot the linear regression and bands. They're stock will be worthless in about 3-4 months, that is if the stock market keeps gaining at current pace. If the market as a whole slows, the regression will be much faster. They are on seriously borrowed time.
(http://farm8.staticflickr.com/7275/7804254224_880c7753d4_z.jpg)
Quote from: Gaspar on August 17, 2012, 04:14:30 PM
It's an excellent example of the government acting as a really really stupid private equity firm!
If the government were acting as a private equity firm, GM would be bankrupt already. They would have been unable to service the debt load used to buy up all the stock and they would have been busy spewing out special dividends to "repay" the new owners for the cost of their equity stake.
Quote from: nathanm on August 17, 2012, 04:41:31 PM
If the government were acting as a private equity firm, GM would be bankrupt already. They would have been unable to service the debt load used to buy up all the stock and they would have been busy spewing out special dividends to "repay" the new owners for the cost of their equity stake.
Like this...
http://www.huffingtonpost.com/2009/05/15/gm-dealer-closing-list-se_n_203860.html
and this...
http://www.nytimes.com/2009/06/02/business/02union.html
and this...
http://www.csmonitor.com/Business/2010/1119/With-big-GM-stock-offering-vindication-for-the-government-bailout