Is the New GM a Buy?

Filed under: GM, Earnings/Financials

After next month's elections, General Motors will rev up its engines to go on the road and try and sell its initial public offering of common stock to savvy investors, especially the big institutional investors with millions of dollars, hundreds of millions in some cases, to put into a stock they like.

So, is the new GM a buy? Let's look at some facts. It has had four CEOs since Spring 2009. It has gone into and come out of Bankruptcy. And it's current chairman, Edward Whitacre Jr., tapped by the White House because of his extraordinary history of management and corporate governance, apparently is so checked out already, despite the fact that he has the job until the New Year, that he yammered to a reporter about details of GM's stock plans despite the fact that the company is in a Securities and Exchange Commission-imposed "quiet period." Oops.

"It's a little too early to say, but it is going to be somewhere in the $20 range ...$20 to $25, something like that would be my guess," Whitacre told Reuters. Reuters also quoted Whitacre as saying, "I can't say how much we'll sell, but I can say we'll have a successful IPO sometime in November." GM has had to distance itself from the comments of its own chairman.

While these facts don't necessarily inspire confidence, hold your judgement. Stock market investing can be an emotional game, especially for amateur individual investors. But it pays to look at stocks and the future with a more unemotional view.

Continue reading...Continue reading Is the New GM a Buy?Is the New GM a Buy? originally appeared on Autoblog on Fri, 22 Oct 2010 13:30:00 EST. Please see our terms for use of feeds.Permalink | Email this | Comments



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