GM Shares Oversubscribed?

[StubbleJumper]

I was browsing the G&M and saw this article on General Motors share issuance:

 

http://www.theglobeandmail.com/globe-investor/demand-swamps-gm-ipo-sources/article1796983/

 

 

Fool me once, shame on you.  Fool me twice, shame on me.

 

Do people really think GM suddenly has better long term prospects?  ???

 

 

SJ

[Myth465]

Better yes, great or worth while - probably not. But hey they have a good business in China.

[biaggio]

I think they are short term buyers. They are looking for" short term pop."

[Uccmal]

Better yes, great or worth while - probably not. But hey they have a good business in China.

 

Thats a really good point.  Board members are NA centric.  GM has operations around the world.  It was the US division that needed restructuring.

 

That said car companies - you can have them, all of them.  Too competitive and capital intensive.

[BargainValueHunter]

GM now trades for less than its cash on hand.

[Santayana]

What's the cash to debt ratio?

 

I see Peter just beat me to it....

[BargainValueHunter]

http://www.bloomberg.com/news/2011-09-01/no-gm-buyback-or-dividend-seen-as-pension-gap-freezes-cash-cars.html

 

GM isn’t required to make contributions to its U.S. pension plans this year, according to its 10-K filing. The automaker doesn’t project required contributions until at least 2015 and is evaluating whether to make additional voluntary inputs still this year, according to the filing.

 

“We suspect GM will make a large voluntary contribution late this year or early next year, as the company has frequently repeated its conviction to ‘fully fund and de-risk’ its U.S. pension plan,” Ceraso said in the Aug. 18 Credit Suisse report.

 

GM now trades for less than its cash on hand.

 

yeah if you don't count debt and pension liability. but most rational investors Would.