As GM Continues to Stuff Dealer Channels, Will Government Motors Finally Close Below Its IPO Price?
While GM has traded below its IPO price in the past, so far the most coddled IPO of 2010 has yet to close below its IPO price of $33. Indeed, while the special services of HFT powerhouse GETCO have been instrumental in allowing the car maker to continue diverging with its true price, courtesy of massive bouts of momentum buying every time the stock price appears to break with government regulation, today may be the day when gravity and reality finally wins. And considering that GM just released its February sales data, which confirmed that the company continues to engage in dealer inventory stuffing, with 517,000 cars held in dealer inventory, compared to 510,000 in January, and 420,000 a year ago, (and the second largest amount in history after the 536,000 in November), the veneer off the world's most overvalued carmaker is finally starting to come off.
Dealer inventory as per just released sales data:
And the GM stock price so far:
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