BF2S Forums Investment

FEOS wrote:

GM's gonna have an IPO soon.

DOIT!

FEOS wrote:

Hurricane2k9 wrote:

FEOS wrote:

GM's gonna have an IPO soon.

DOIT!

how certain are you that it'll go up? I might just do that if the IPO is low enough.

/sarcasm

Hurricane2k9 wrote:

FEOS wrote:

Hurricane2k9 wrote:

how certain are you that it'll go up? I might just do that if the IPO is low enough.

/sarcasm

well shit it's not out of the realm of possibility that they could have a decent resurgence

JohnG@lt wrote:

FEOS wrote:

Hurricane2k9 wrote:

well shit it's not out of the realm of possibility that they could have a decent resurgence

The point is buying stock in companies with solid fundamentals and holding it long term.

Not sold on GM falling in that category right now.

GM will undoubtedly spike if it launches low. I wouldn't feel comfortable long term.

Hurricane2k9 wrote:

JohnG@lt wrote:

FEOS wrote:

The point is buying stock in companies with solid fundamentals and holding it long term.

Not sold on GM falling in that category right now.

GM will undoubtedly spike if it launches low. I wouldn't feel comfortable long term.

but short term if it spikes it'd be fine, no? Imagine if it launches at, say $2/share (pulled that number out of my ass) and goes up to $20 for a bit. that's pretty decent.

Hurricane2k9 wrote:

$18? fuck that then

The U.S. will cut its ownership stake in General Motors Co. below the symbolically important 50% to about 35% when the car maker relists its stock later this month, according to new figures the company plans to disclose Tuesday, but it will be tough for the government to break even on its investment.

Neal Boudette discusses GM's IPO plans, which will raise up to $10 billion and cut the government's stake to below 50%.
Journal Community

The new projections by GM say the company could have a stock-market value at the start of trading of $50 billion—about the same as the solidly profitable Ford Motor Co.—and that it could be as high as $60 billion, said people familiar with the plan.

But for the U.S. to break even through sales of the rest of its stake, the share price may need to rise more than 60% from its initial level, to about $50.

The initial public offering plan envisions the shares would be priced at $26 to $29 each, these people said. The actual price of the stock to be sold in the IPO would be set about Nov. 17, and the sale would take place the following day.

Through the IPO, GM plans to sell 24% of its total shares, or about $10 billion worth, based on the midrange of the share-price estimate.

The shares to be sold are owned by the U.S. Treasury, a union-run trust and Canadian federal and provincial governments, said the people familiar with the plan.

Under the plan, the Treasury would sell $7 billion of its shares, paring its 61% stake to about 35%—lower than many observers expected. The United Auto Workers trust, which pays for retiree health care, would sell $2 billion of its shares, while Canada and Ontario would offload around $1 billion of their shares.

The plan includes a stock split that will triple the number of GM common shares available to 1.5 billion. Outstanding warrants—the right to buy shares—boost the total to 1.8 billion.

Details of the stock offering are expected to be filed with the Securities and Exchange Commission on Tuesday, in advance of a "road show" GM is set to launch Wednesday to promote the IPO to prospective investors.

GM executives will divide into two teams to pitch the IPO. One team will spend two days in the New York area this week, while the other will head to Toronto, according to people familiar with the plan. On the road show, GM will likely face tough questions about its untested management team, holes in its product plans and the role the U.S. government will play in its business operations—all seen as key risks to GM's longer-term success.

The Obama administration is seeking to recoup the $49.5 billion that taxpayers poured into GM. Critics refer to the company as "Government Motors," and the U.S. ownership stake has tainted the company in the eyes of some potential car buyers.

GM last week returned $2.1 billion to the U.S. government, bringing the total amount it has handed back to $9.5 billion, through loan repayments, interest payments and dividends, the Treasury said.

The Treasury was under pressure to meet expectations that it would begin selling its stock in 2010, though market and auto industry conditions are less than ideal for a large IPO. The post-election timing was intended in part to avoid political fallout at the polls should the offering disappoint, according to people familiar with the plan.

KEN-JENNINGS wrote:

JohnG@lt wrote:

Hurricane2k9 wrote:

but short term if it spikes it'd be fine, no? Imagine if it launches at, say $2/share (pulled that number out of my ass) and goes up to $20 for a bit. that's pretty decent.

I think I read it's expected to launch at around $18. If you think it's gonna spike go for it. I'd rather buy options on it to hedge my bet.

you can actually make decent money on puts and calls as hedge bets.  The father of a girl I dated in high school was insanely sucessful doing it and actually wrote a book about it.  He was an Ayn Rand fanatic too.  You guys would probably get along great.  I think he lost a lot of money after an SEC investigation though, something about manipulating the market because he and his business parter controlled a sizeable mutual fund in the early '90s.

KEN-JENNINGS wrote:

it escapes me right now, but i know i've got a copy or two packed away.

HaiBai wrote:

who's up for a stock competition on virtualstockexchange.com?