GM's IPO shares to be $110-$130 each -- you interested?
For weeks now on MSN, we’ve been mulling around the question: what will be the reaction of investors when General Motors once again becomes a public stock?
It all started when insiders speculated the troubled automaker would begin issuing – or is it “reissuing”? – its IPO later this year, and now such details have been confirmed.
While a date isn’t entirely certain (the latest guess is October), GM will indeed make its shares public on the Toronto Stock Exchange in 2010. Will Canadian investors, then, see a buy-low bargain when GM stock becomes available, or a red flashing “Stay Away!” sign instead?
The Government Motors IPO saga took its latest turn Friday when we finally got an estimate for how much the company might list its share price.
According to two Dow Jones I-bankers quoted in the Wall Street Journal, look for GM to list its IPO price somewhere in the $110-$130 range per share.
Wait, you’re saying, $110 per GM share when I can go out and buy Ford stock – that of the didn’t-need-bankruptcy Ford – for around $12 per share?
Yes, that seems to be how it’ll go for General Motors’ re-entrance into becoming a public company – jack up the share price (some thought $80 per unit was a more accurate ballpark) and hope investors will react accordingly.
Now, there are certainly many other bailout/government-related subplots to GM’s IPO later this year. But for our average Jack and Jill Canadian stock buyer, the prospect of buying a piece of GM comes down to one of two viewpoints:
1. You either think the chance to buy GM stock now, at its market re-entry price, is a steal. GM has proven itself to be profitable again, is tapping into emerging markets like Brazil and China, and has turned the corner to becoming one of the world’s most admired companies once more.
2. Or, you think the above is utter nonsense. Investing with GM after what happened in the last, say, five years would be akin to betting Robert Pickton gets accepted into the NCWC: suicide with your money. If you had a gun to your head and had to, wait six months after GM’s IPO for its stock to fall further, then buy it.
Both arguments above hinged on the potential share price of GM’s stock, and now we have it. So, which camp are you in?
At $110-$130 per share, would you be interested in purchasing stock in General Motors for yourself?
By Jason Buckland, MSN Money
Posted by: Clint Gieni | Aug 21, 2021 12:50:19 AM
GM still can't build a decent vehicle yet... I won't buy their shares if they were 20.00 a share. They will be broke again in another 5-7 years!!!
Posted by: cougar | Aug 21, 2021 8:52:50 PM
I wouldn't touch them with a 10 foot pole or a 10 dollar bill ; they should give their heads a shake
Posted by: Ken | Aug 22, 2021 11:31:22 PM
Our Gov't should have let G.M. and Chrysler bleed a little regardless of the employees...didn't a lot of us lose our jobs at other comopanies large & small due to cut backs and re-organization...for sure we did....Our Gov't should never have bailed out these companies which were failing due to their own faults of not downsizing their selections like Ford did...Ford never asked for money because they already bled and re-organized....that is the crux of the problem.
Would other smaller companies have been given consessions...absolutely not
Posted by: Rob White | Aug 23, 2021 9:35:58 AM
I am a devoted Chevrolet customer but I would never invest in the company. I just don't trust management. It has been proven that they do not have the ability to manage cash flow. I believe that they are all waiting to recoup the monies that have given up in wages. Also let's not forget the union which is also waiting on the side lines for an increase in wages.So the best of luck to any investors. Please don't complain when you go broke investing in Government Motors.
Posted by: sil | Aug 23, 2021 9:42:49 AM
Clint you are right. Gm products are junk, they will come out ok, but return to a defict real quick.
Chrysler and ford are not that great.
GM= Gutless mobile.
The big 3 will never be like Toyota, honda or nissan. I would by a kia before a gm junk
Deficit in 3 yrs and then bankrupt again in 7yrs
Posted by: Tom McAnulty | Aug 23, 2021 10:04:13 AM
I bought shares back in 2008 about the same time Buffet put 5 billion in. The big difference was my shares went to zero-his debenture notes bought him a percenture of the company that survives today. So me and all the other "little guys got screwed, all the key players including the governments on either side of the border will get their money back, and GM expects me to buy their inflated paper again. I don't think so. How about they renew my stock value at the same price when they went chapter 11 and we reset the IPO at that level to let everybody back in. The only people that lost money are common stock shareholders-who coincidently buy GM cars to drive to work.
Posted by: Long Ago | Aug 23, 2021 11:21:39 AM
GM - Good Money afterBad!
Lot's of other better quality choices for a vehicle. Eliminate the weaklings. They also now employ Canadians.
The Auto Pack does not mean that GM, Chrysler, Ford etc. are not foreign vehicles either?
Posted by: cj | Aug 23, 2021 11:54:24 AM
First off I agree that the shares are coming in too high! However the new product is probably the best on the market right now as far as quality is concerned.I know Im gonna take flack from the morons that havn't looked at, or researched anything new in 10 years. And as for" Long Ago" are you stupid? Us Canadians have been making product for you for years!! Wake Up! If you buy a Kia you better decide to drive it into the ground, because you wont get anything on a trade in. Always has and always will be a cheap mans cheap car..
Posted by: Ed Hildebrand | Aug 23, 2021 12:06:44 PM
It is obvious that many of you have not driven a GM vehicle for a long time. Buick products took first place in the JD Power customer satisfaction survey ahead of Toyota, Honda and all other manufacturers last year and are second to only Lincoln this year. Both of these companies are U.S. based companies not Japanese or Korean. GM and Ford are building products that meet or exceed any other manufacturer when it comes to quality at all levels and at a lower price than the competition. Stay blindly true to the imports if you wish but get your facts straight before running down the domestic product.
As far as buying GM stock it will be no different than any other stock. It is a crap shoot at best and unless you are very knowlegable (or have a great broker) you could do as well playing roulette in Las Vegas.
Posted by: Stan | Aug 23, 2021 12:36:13 PM
I would buy them in a second if there were only issuing a maximum of 1000 shares!
Posted by: Long Ago | Aug 23, 2021 12:54:52 PM
To CJ: I think the Stupid applies more to you. KIA would probably take longer to drive into the ground. My point is the Big Three are also Foreign? - US companies. We just built some in Canada as WE NOW DO for most other makes.
Like most cars you rarely get much on a trade in unless you are dealing the same brand anyway. Been there and done that many times and all are the same, so wake up!
Posted by: Joe Delaney | Aug 23, 2021 1:00:48 PM
Thanks to Ed Hildebrand for pointing out the truth about GM`s current offerings. To repeat history, the reason the auto industry failed is because to many people keep investing abroad. Some assest cannot be let go or your petty little lives fail too!! Whomever convinced you that giving away the ware`s in the store was the way to get rich, are now kicking your bagged head to Timbucktoo... SMARTEN UP, QUIT GIVING UP ON YOUR FUTURE, and for your sake, BUY DOMESTIC!!!!
Posted by: Long Ago | Aug 23, 2021 1:04:34 PM
To run down Domestic, you would need to wait for them to catch up. They are improving and about time.
Most brands are now domestic (built in Canada) and not just the original big three. Again is the US not a foreign country? Only their location is closer. The workers in the US are not thrilled about Canadians building and shipping some models back to their market. They were and still not thrilled about the Auto Pack.
We build not own the companies and brands - including GM, Chrysler, Ford etc.
Posted by: Dariusz | Aug 23, 2021 2:48:53 PM
I hope that all the big 3 and all manufacturing in Canada and the USA turn into dust. I hope that we de industrialize and become nothing more then a shell of what we once were. I hope that dictatorship regimes dominate our lands. I hope that democracy will fail and the face of our people will be crushed by the boots of a foreign army. Down with Canada she doesn't deserve the lands it possess and once we de industrialize there wont be a damn thing you foreign loving traitors can do about it.
A once proud Westerner
Posted by: sunil | Aug 23, 2021 3:19:04 PM
Why would goverment give up Gm if there making money? They should keep control of the company and free some of there own debt. Doesn't it make sence, why the goverment is not interested in Gm, because Gm is a flop.They know that and that's why they are selling it.
Posted by: Gregg | Aug 23, 2021 3:28:28 PM
This is rediculous. Why did our government bail these idiots ..Ford didnt get a dime and they have survived. When G.M. said they were doing away with Pontiac, that was the nail in the coffin. As far as im concerned we bailed them out we should as Canadians get shares for free. Our tax dollars bailed these old croanies that still to this day cannot get it right. I think every Canadian should get 1 share of G.M. for free period. And G.M. GET THE HINT PONTIAC MADE YOU A SUCCESS WITH THE FIREBIRD,GTO, ETC ETC..yOU CANNOT GLORIFY A PLAIN JANE CHEVY AND EXPECT ME TO BUY IT. FORGET IT!!!!!!!!i would like to know who they surveyed for them to get to this decision. We bailed G.M. out, we as the tax payers shoud say wether or not they should do away with any brand. Take a look at the new Chevy, all stolen ideas and models from Saturn. Chevy hasnt built a decent car since the 61 Impala...
G.M. get your heads out of your butts, who cares what China buys, they are the only ones buying your ugly Buicks, and I mean ugly!!old croanie cars .....
get real, Pontiac built excitement, not Chevy nor Buick.....
for me to support G.M. again forget it..Never!!!!
pissed off Pontiac and loyal Pontiac owner.....
Posted by: Sam Williams | Aug 23, 2021 3:36:32 PM
This discussion has left the initial question quickly. Would you buy the stock at $110-$130 per share. my answer is simply no. and its not the product or where its built that has me on hold. its the price. To join the side discussion here, yes the U.S is technically a foreign country. Lately the term "Domestic" refers more to North American then simply American. I live in Alliston, On where we do two things. Farm, and build Honda's. Im very bias towards GM as I am a sales consultant for the local GM store and i want to make that known. In reply to LONG AGO and SIL.....I highly suggest you make a visit to your local GM store before showing your complete lack of knowledge of the current automotive marketplace. I strongly recommend you take a Chevrolet Equinox, GMC Terrain, Buick Regal, Buick LaCrosse for a drive. all of those vehicles are currently equipped with a 4cyl engine that was recently rated as one of the top 10 engines in North America. The Equinox and Terrain are made her in Ontario, and with the amount you can see driving on the road people really like them. GM has built some very poor quality in the recent history. Those vehicles have been phased out or in the process of being phased out. It will take time for people to be able to look at GM vehicles with out thinking of the recent events, but when you put a Ford or GM vehicle side by side to a Toyota, Honda or KIA, you will see that the quality and value are there. KIA's current line up is very impressive. as is Toyota and Honda. all three have shown some of the same problems that brought the "Big 3" back to earth. They have become too complacent with your brand loyalty. i highly reccomend you take a look at the Ford Focus or the Chevrolet Cruze side by side with a Honda Civic and a Toyota Corolla. Tell me which one looks like Junk
Posted by: pete b | Aug 23, 2021 3:38:13 PM
If you were smart you would stay far away from this stock, CHINA is building there first car plant in the usa as we speak, GM, FORD, will be a thing of the past they should never of bailed them out because you can't stop countiess like CHINA and INDIA FROM COMMING OVER HERE.
SO GOOD BUY GM AND THINK BEFORE U BUY
Posted by: Ron | Aug 23, 2021 3:40:15 PM
I'd buy shares if:
The Govenrment hadn't taken my hard earned tax dollar to bail them out.
The Government hadn't implemented a new tax to make me poor.
Inflation doesn't keep rising above todays misrable wages.
The price of a new car doesn't require a morgage to afford.
Get were I'm going with this? Is investing in GM as sure of a winner as the Government is a smart spender? Hmmm, I will let you figure that one out. Meanwhile my answer is "I refuse to invest in terrorist groups like GM or the Canadian Government!"
Posted by: Raymond | Aug 23, 2021 3:40:49 PM
This is a classic "pump and dump" scam lead by our Canadian Government and the big Canadian banks looking for a quick flip and fat profits. Initial public offerings are always bought deals on the opening day of a new listing. The Canadian bank brokerage arms will get chunks of the stock and at a prefered price and when the shares begin to trade they will "Bid the price up" initially. They will then dump the shares to individual investors and to mutual fund companies including thier own trading desks who will fill up everyone's pension plans with this junk. Thus they sell at a profit and will get additional trailer fees from the transactions in the mutual funds that most Canadians own in some way, shape or form. The price will begin to slide especially as the US economy and Canadian economies slow down as people just can't handle any more debt to make large purchases. This looks a lot like Nortel Networks a few years ago when that stock could go nowhere but up. Just ask your broker or financial planner who kept pounding the desk to add more to your portfolio or retirement plans.