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GM, Held By 112 Hedge Funds, Slides Below IPO Price

Tyler Durden's picture





 

Congratulations Centrally Planned Garbage Motors: GM slides to below its IPO price, hitting $32.75. And now we get to see if GETCO has been swimming with no bathing suit on the entire time.

As a reminder, 112 hedge funds hold GM stock. Oops.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/von%20havenstein/Aaple%20HF%20Hotel%20Q4.jpg

And time to remind the retarded market making robots of what we posted a week ago:

And some bad news for the world's worst car maker (recently
bankrupt), which has bet its entire "growth" platform as per the recent
IPO on the one market that is so far unfamiliar with said carmaker's
"quality" reputation. In January, the Shanghai-based China Passenger Car
Association reported that sales of passenger cars fell 10.3 percent in January from the month before to 965,238. Per Manufacturing.net:
"Chinese bought 13.7 million passenger vehicles last year, up by a
third
from 2009. But that robust growth is forecast to cool this year due to
the expiration of tax incentives for some vehicle purchases and a
renewed effort by cities to bring traffic under control."Is the recent
collectivist action to cool off purchasing actually going to have an
adverse impact not only on GM's margins but its sales as well? Why yes.
But the market will be stunned when this is publicly announced shortly.

Furthermore, the deterioration in car sales is accelerating:

"Of
course the withdrawal of financial incentives would impact any
country's auto market, and sales did continue to grow in January, but
toward the end of the month there was a sharp cooling in sales," the
Passenger Car Association report said.

It said sales in February
were bound to decline due to the usual slump following the Lunar New
Year holiday, which was longer than usual.

What's worse is that the government is now actively starting to set quotas:

The
explosive growth in Chinese car ownership has nurtured the rise of the
domestic auto industry, but left major cities like Beijing and Shanghai
jammed with traffic and choking on smog.

China's capital has
decreed it will limit new vehicle registrations to 240,000 this year --
just over a third of those registered in 2010 -- to try to ease massive
traffic jams that have turned Beijing's streets into virtual parking
lots.

Soon getting a car in Shanghai will cost less than getting a cab medallion in New York City:

News that Shanghai would more strictly enforce existing restrictions on
vehicles with out-of-town license plates, often bought by city residents
to avoid paying exorbitant fees in monthly auctions, boosted the
average price for a plate to 44,000 yuan ($6,666) last month, local
reports said.

And in keeping with new quotas, there go the subsidies too:

As
of January, the government ended sales tax rebates and subsidies for
rural buyers, which initially fueled huge growth in sales of minivans in
the countryside after they took effect in 2009. That is expected to
dampen demand in coming months.

But most auto manufacturers are
banking on solid growth in the country's vast rural areas and inland
cities, where most families do not yet own cars and those that do are
keen to trade up.

And going back to the company mentioned earlier on:

General
Motors Co., which for the first time in its 102-year history sold more
cars and trucks in China last year than it did in the U.S., reported
sales in China rose 22.3 percent from a year earlier in January to
268,071.

Ford Motor Co.'s sales climbed 20 percent, to 53,340 vehicles.

While
domestic auto companies are growing quickly, they have yet to overtake
foreign car makers and their joint venture partners: Six of the nine top
car manufacturers by sales in January, according to the Passenger Car
Association, were joint ventures, led by GM and its flagship joint
venture with state-owned Shanghai Automotive Industrial Corp., Shanghai
GM.

Luckily, now that the (absolutely flawed)
paradigm is that the US will once again lead the world away from
depression, we are confident that the government will pull another
endorsed subprime bubble, and provide loans on a 120% LTV basis to
buyers of GM cars. After all, all that channel stuffing that GM is
engaging in month after month has to be offloaded to deadbeat consumers
somehow.

 


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Thu, 02/24/2011 - 11:52 | Link to Comment Cookie
Cookie's picture

As predicted by ZH

Thu, 02/24/2011 - 12:03 | Link to Comment Ragnarok
Ragnarok's picture

As predicted by anyone who wasn't a shill.

Thu, 02/24/2011 - 12:07 | Link to Comment Hero Protagonist
Hero Protagonist's picture

I wonder how Phil Lebow feels about everyone calling his girl friend (GM) ugly?

Thu, 02/24/2011 - 12:34 | Link to Comment Common_Cents22
Common_Cents22's picture

he blamed it on fords earning release and a broad pull back on auto sector.

phil LeBlow

Thu, 02/24/2011 - 15:34 | Link to Comment Don Birnam
Don Birnam's picture

Phil "Shop Steward" LeBeau should really come clean with whatever viewing audience remains for CNBC, and make it official: go to work for the Administration.

Thu, 02/24/2011 - 13:00 | Link to Comment masterinchancery
masterinchancery's picture

GM had to be exempted from all securities fraud laws in order to float the IPO, and it is run by the UAW, which likes to pay itself bonuses. It is a scam financed by the taxpayers.

Thu, 02/24/2011 - 13:01 | Link to Comment YHC-FTSE
YHC-FTSE's picture

Not really predicted accurately. It took awhile, but we got there. I remember most gave it less than a week to fall below $33 back in November. I think I gave it two.

Thu, 02/24/2011 - 11:53 | Link to Comment buzzsaw99
buzzsaw99's picture

the bernank approves this message.

Thu, 02/24/2011 - 11:54 | Link to Comment camaro68ss
camaro68ss's picture

Thats why i go long FORD

Thu, 02/24/2011 - 12:00 | Link to Comment Common_Cents22
Common_Cents22's picture

The new ford explorer looks great!  F needed some new design.

Thu, 02/24/2011 - 12:04 | Link to Comment AnarchoCapitalist
AnarchoCapitalist's picture

So says someone who named himself after a Chevy product.

Thu, 02/24/2011 - 12:48 | Link to Comment ColonelCooper
ColonelCooper's picture

I thought it was kinda funny.

Thu, 02/24/2011 - 11:55 | Link to Comment kaiten
kaiten's picture

Breaking news from REUTERS:

Saudi national arrested in Texas on charge of attempted use of WEAPONS OF MASS DESTRUCTION!

 

Thu, 02/24/2011 - 11:59 | Link to Comment chumbawamba
chumbawamba's picture

Thanks for the link.

Thu, 02/24/2011 - 12:08 | Link to Comment chumbawamba
chumbawamba's picture

That was sarcasm.  Next time, post a fucking link.  This is the internet, not paper.  Even then, get a fucking pen.

I am Chumbawamba.

Thu, 02/24/2011 - 12:10 | Link to Comment Hero Protagonist
Hero Protagonist's picture

I thought he was joking...

http://reut.rs/hFBIcv

Thu, 02/24/2011 - 12:15 | Link to Comment chumbawamba
chumbawamba's picture

What I can deduce from that one paragraph magnum opus of a news article is that the guy was probably just doing a chemistry experiment, and some Texas Ranger yahoo thought he'd build his career on it.

Weapons of Mass Disinformation.

I am Chumbawamba.

Thu, 02/24/2011 - 12:44 | Link to Comment Oh regional Indian
Oh regional Indian's picture

How's twitter working out for you Chumba? Life changing? Altering?

ORI

Thu, 02/24/2011 - 14:07 | Link to Comment chumbawamba
chumbawamba's picture

It was fun for about four hours, then I ran out of short things to say.

I am Chumbawamba.

Thu, 02/24/2011 - 12:31 | Link to Comment kaiten
kaiten's picture

There was no link/article when I posted it - just a headline on the reuters page.

Thu, 02/24/2011 - 11:59 | Link to Comment tmosley
tmosley's picture

That is the standard charge for farting in an airport.

Thu, 02/24/2011 - 12:08 | Link to Comment chumbawamba
chumbawamba's picture

During a crotch inspection.

Thu, 02/24/2011 - 12:07 | Link to Comment cowdiddly
cowdiddly's picture

That will be good for a 400 point rally. Buy the freaking mushroom cloud.

Thu, 02/24/2011 - 12:20 | Link to Comment karzai_luver
karzai_luver's picture

tool.

Wake me when they arrest a bankster , ok?

 

Thu, 02/24/2011 - 11:56 | Link to Comment Careless Whisper
Thu, 02/24/2011 - 11:57 | Link to Comment gwar5
gwar5's picture

Who was stupid enough to buy it anyway? It was never a keeper.

 

Thu, 02/24/2011 - 11:57 | Link to Comment DonnieD
DonnieD's picture

This makes my day.

Thu, 02/24/2011 - 11:57 | Link to Comment chumbawamba
chumbawamba's picture

http://www.zerohedge.com/node/251182/results

You all suck at forecasting.

I am Chumbawamba.

Thu, 02/24/2011 - 11:59 | Link to Comment tmosley
tmosley's picture

Access denied?

Thu, 02/24/2011 - 12:02 | Link to Comment SheepDog-One
SheepDog-One's picture

You suck at linking.

Thu, 02/24/2011 - 12:45 | Link to Comment EB
Thu, 02/24/2011 - 14:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Who cares about forecasting? Theyre all wrong, however overall everyone was correct at this point, its below IPO, who gives a shit about the timeline.

Thu, 02/24/2011 - 11:57 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

stuff the inventory pipeline much?

Thu, 02/24/2011 - 11:58 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Never had a short pay so well.  Wheee indeed.

Thu, 02/24/2011 - 11:57 | Link to Comment JNM
JNM's picture

And bragging about profits and bonuses...

Thu, 02/24/2011 - 12:01 | Link to Comment bankrupt JPM bu...
bankrupt JPM buy silver's picture

anyone have an H1 looking to sell?  Need to convert it to Nat gas before the end game here...holla

 

www.silvergoldsilver.blogspot.com

Thu, 02/24/2011 - 12:01 | Link to Comment Scottj88
Scottj88's picture

If you haven't by now, you should really look at silver miners... some such as Great Panther (GPL) have had 400% returns in 6 months...

http://thehardrightedge.com/miningequities/

Buy Physical Silver

Ron Paul 2012

Thu, 02/24/2011 - 12:02 | Link to Comment maxcody
maxcody's picture

GM is gone like like many american giants -  KodaK

was great and lived off the stolen technology it stole

from Germany and Japan afte WWII.  Where is a midsize

pick up with great MPG's?  Where is a Natural Gas Car

which you could fill up at 75 cent a gallon?  Nat Gas is cheap and abundant.  Where is a energy policy is this

of Obama.

Thu, 02/24/2011 - 12:30 | Link to Comment Nels
Nels's picture

http://www.cleanmpg.com/forums/general/t-cng-honda-civic-car-fireexplosi...

Here is one of your natural gas cars.  Cheap, abundant, but maybe not so safe.

Thu, 02/24/2011 - 12:55 | Link to Comment Translational Lift
Translational Lift's picture

oBummer is handing out $7,500 tax credits for buying a Gubment Motors electric car (Chev Volt) with borrowed money which he will then tax us to pay back the money he borrowed to pay the tax credits.  He also bought most of the GM electrics that were sold to give to the poor under paid gubment employees.  I wonder if he gives the gubment $7,500 credit also???

Thu, 02/24/2011 - 12:05 | Link to Comment SheepDog-One
SheepDog-One's picture

GETCO more likely swimming off Shark Beach with a filet mignon bathing suit.

Thu, 02/24/2011 - 12:03 | Link to Comment camaro68ss
camaro68ss's picture

DIVE, DIVE, DIVE

Thu, 02/24/2011 - 12:10 | Link to Comment karzai_luver
karzai_luver's picture

I just have one wish , to live to see the day this bastard hits fukin ZERO!

 

Oh FREEDOM FREEDOM.

 

Mark that mofo ZERO!

 

Short it to hell.

Obeyme eat that you bitch!

 

Everytime I see one of those fab GM bolt buckets I want to blowtorch the damn thing.

 

 

Thu, 02/24/2011 - 12:07 | Link to Comment tahoebumsmith
tahoebumsmith's picture

No surprise here and when gas prices hit $ 5.00 a gallon you can be sure the price will drop down below $25. All those Chevy 1500 and 2500hd series stacked on dealers lots will become anchors. Not to mention the Denalis and Escalades, Suburbans and Yukons. And all the people hoodwinked into buying these gas guzzlers at 0% over the last six months will soon realize they are buried in them and wont even be able to put gas in their coffins on wheels. I hope GMAC has a plan for car squatters because jingle mail is soon to include not only the house keys but the family gas guzzler as well. And for those who have a GMAC Mortgage and the GMAC auto loan it will save you money on postage because they will only need one stamp.

Thu, 02/24/2011 - 12:08 | Link to Comment topcallingtroll
topcallingtroll's picture

Buy one cheap.
Convert to natgas for 3000 bucks installed.

Thu, 02/24/2011 - 12:08 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

Who says history does not repeat...I feel like we are in early 2008 all over again.

Thu, 02/24/2011 - 12:14 | Link to Comment karzai_luver
karzai_luver's picture

anyone with either should be put on trial for crimes against America.

 

Why don't you just pack all that shit up ad move to n. korea.

 

And you "folks" who bought all those nice new vehices off that goobermint handout can just die , K!

 

I see some of these tea party fucks around here braggin about the great deals they got from the last round of goobermint handouts.

Well, Mabel been good to me , she deserves a new gooberment car.

fools.

 

 

Thu, 02/24/2011 - 12:24 | Link to Comment Pladizow
Pladizow's picture

Why do you think GM puts OnStar in its vehicles - Repo Bitches!

Thu, 02/24/2011 - 18:59 | Link to Comment BenLightYear
BenLightYear's picture

Im looking forward to the day the SUV market bottoms 

out personally. At 5'5 and 130 lbs i can comfortably live

in one. Just need a place to park it which shouldnt be hard

to find with all the abandoned driveways sittin around. 

A little investment in some armoring it up and ill have a 

nice little fortress. 

Thu, 02/24/2011 - 12:06 | Link to Comment Subprime JD
Subprime JD's picture

"Centrally Planned Garbage Motors"

Yet another ZH classic

Thu, 02/24/2011 - 12:08 | Link to Comment Misean
Misean's picture

American Leyland needs to reintroduce 8-track players on their models.

Thu, 02/24/2011 - 12:07 | Link to Comment Cpl Hicks
Cpl Hicks's picture

All that huffing and puffing from Barry O, Rattner and the CNBC shills....lol

Thu, 02/24/2011 - 12:13 | Link to Comment fuu
fuu's picture

I must admit to being wrong on my call here. I thought it would happen within the first month per the poll that was up a while ago. My bad.

Thu, 02/24/2011 - 12:21 | Link to Comment vas deferens
vas deferens's picture

You just under estimated the foolishness of 112 hedge funds buying this crap, as I did.

Thu, 02/24/2011 - 13:33 | Link to Comment AccreditedEYE
AccreditedEYE's picture

+1

Thu, 02/24/2011 - 12:14 | Link to Comment camaro68ss
camaro68ss's picture

We should all party like its 2Q 2008. I want to take money out of my house and buy a GM truck for zero down! then buy a boat and another house for zero down so i can flip it in 6 months! whos with me!!!

Thu, 02/24/2011 - 12:14 | Link to Comment schrock
schrock's picture

>>And now we get to see if GETCO has been swimming with no bathing suit on the entire time.
Very very funny line! Good one Tyler.

Thu, 02/24/2011 - 12:18 | Link to Comment vas deferens
vas deferens's picture

I thought hedge funds only trade on inside info.  I guess only the ones that make money.  Buying GM?? and the other top holdings are banks and tech WOW good luck!!  George Soros' hedge fund (full of PM) either has good inside info. or is reading ZH.

Thu, 02/24/2011 - 12:22 | Link to Comment oh_bama
oh_bama's picture

BTFD guys!! what an opportunity!!

 

SALES LOWER DUE TO BAD WEATHER! AND AL QAEDA!

Thu, 02/24/2011 - 12:22 | Link to Comment slackrabbit
slackrabbit's picture

I hate GM with a vengence. It represents everything I despise about large corporations. Incompetent management, crap quality, bad design, over paid losers and government in their pocket.

As a tunraround manager I can say, very few management were really fired - most came back as 'consultants'. 

If ever there was a value destroying money eating black hole entity, this is it.

The big government line is, that people will lose their jobs if it is shutdown, and that it is 'oh so important to the USA'...if its so important, why does it always do such a crap job then? The fact that they still produce gas guzzlers just shows how late to the party these people really are.

Whats next the 6000 SUX? http://www.youtube.com/watch?v=fl8mQhxhE_Q

 

Thu, 02/24/2011 - 19:27 | Link to Comment Dirt Rat
Dirt Rat's picture

I'm in lock step agreement. GM thought they were so big and important that they could dictate the market and they refused to adapt to the new normal after the '73-'74 embargo. They've been a dinosaur lumbering towards extinction ever since. Kill it NOW.

Thu, 02/24/2011 - 12:29 | Link to Comment johnQpublic
johnQpublic's picture

post the damn story without the ZH vote on when it would go below the ipo is shit journalism

we all knew it would happen for fucks sake

wait til all those vehicles start shitting the bed as crap ass gm's tend to do at 20k miles

Thu, 02/24/2011 - 14:15 | Link to Comment patience...
patience...'s picture

Spot on. My work truck, 2010 HD3500, the dealer rebuilt the reaend and replaced the transfer case at 30K miles. My company thinks they getting a good deal because they are cheap, well they are - cheap.

Thu, 02/24/2011 - 12:35 | Link to Comment LongSoupLine
LongSoupLine's picture

CNBS in FULL auto/GM spin mode right now.  Phil LeBeau foaming at mouth.

Thu, 02/24/2011 - 14:26 | Link to Comment Seasmoke
Seasmoke's picture

i think he still has Rick Wagoners dick in his ass

Thu, 02/24/2011 - 12:39 | Link to Comment Doode
Doode's picture

GM closed below IPO price on 27 out of about 68 days it traded so far - what is the big deal? The market is heading south and GM is considered a major component even after BK so it is just follows.

 

Nothing to see here.

Thu, 02/24/2011 - 13:00 | Link to Comment Thunder Dome
Thunder Dome's picture

Chevy Volt will change the world.

Thu, 02/24/2011 - 13:16 | Link to Comment The Count
The Count's picture

Only if you can recharge it by plugging it into your @ss.

Thu, 02/24/2011 - 13:17 | Link to Comment AccreditedEYE
AccreditedEYE's picture

This took way longer than I expected... If it wasn't for Fed, PD and Robots, it would have been a lot sooner. Of course, you can say that about all things "financial instruments" these days. :/

Thu, 02/24/2011 - 13:49 | Link to Comment Atomizer
Thu, 02/24/2011 - 14:24 | Link to Comment Seasmoke
Seasmoke's picture

what took so long ???.....how do i do one of those new CDS against Government Motors

Thu, 02/24/2011 - 15:00 | Link to Comment snowball777
snowball777's picture

Bought by SWFs...liquidated by SWFs.

Thu, 02/24/2011 - 15:01 | Link to Comment Downtoolong
Downtoolong's picture

O.K., which one of you floor support traders fell asleep at the wheel and let this happen.

 

Quick, someone call Cramer; He was advising to buy GM up to $40 the day after the IPO. I'm sure he'll be willing to pick up a block or two at that price now.

 

 

Thu, 02/24/2011 - 16:31 | Link to Comment Pool Shark
Pool Shark's picture

Well, it lasted longer than I thought.

I predicted it would drop below the initial IPO price after only ten weeks.

It made it a few weeks longer than I thought.

Good for them....

Thu, 02/24/2011 - 18:40 | Link to Comment Village Idiot
Village Idiot's picture

Winner!  Who else bet that GM's share price would hang in for more than 10 days (weeks?)?  High fives all around.

Thu, 02/24/2011 - 18:45 | Link to Comment Buck Johnson
Buck Johnson's picture

As an earlier Tyler post has put it, we may start to see more liquidations of Hedge Funds if they take a bath from this stock (which they will).

Do NOT follow this link or you will be banned from the site!