General Motors IPO….Any Takers?

As GM gets ready to emerge from bankruptcy protection a  much leaner organization with less debt and less product lines, the largest shareholder, the US government and taxpayers, intend on getting some if not all of their money back  in 2010.

An initial public offering has been discussed for the middle of next year which would allow the government to sell off part of the company and allow them to exit this investment in an orderly fashion. The biggest question one should ask is whether there will be any takers?

With the brand tainted and the car industry potentially still in shambles, how many investors will there be? With the overhang of pension costs, health care costs, higher than average salaries, and uneconomic factories, all being disposed of, GM could become an attractive investment with its better selling brands remaining in its fold.

What are your thoughts? Would you consider investing in a new GM without all the former legacy costs? Your comments are greatly appreciated.

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2 Responses

  1. Yep, I anxiously await the possible pending GM IPO with anticipatory delight and I’ll be first in line for my bluechip penny stock! An IPO (or something similar) will definitely occur. All GM’s woes notwithstanding, eliminating GM from the face of US business would be like losing the Statue of Liberty. It simply won’t happen. Now, installing skaffolds, shutting it down for refurbishing, etc., yes, and then bringing it back leaner, meaner, and better than before, to say nothing of cheaper stock prices and better products, absolutely! Heck. Like my grandparents, I might start buying Cadillacs afterall – or at least one.

  2. Sure don’t like throwing water on the parade, but this IPO is the GM parade to nowhere. Geez, how many recall names like Rambler, Studebaker, and Nash? All ot them drove off into the sunset. So, where do I line up for this one. How about this? Put a line on the 1040. Call it contributions to the GM CEO slush fund. There´s a parade getting started in that boardroom right now.

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