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GM, Held By 112 Hedge Funds, Slides Below IPO Price
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.
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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As predicted by ZH
As predicted by anyone who wasn't a shill.
I wonder how Phil Lebow feels about everyone calling his girl friend (GM) ugly?
he blamed it on fords earning release and a broad pull back on auto sector.
phil LeBlow
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.
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.
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.
the bernank approves this message.
Thats why i go long FORD
The new ford explorer looks great! F needed some new design.
So says someone who named himself after a Chevy product.
I thought it was kinda funny.
Breaking news from REUTERS:
Saudi national arrested in Texas on charge of attempted use of WEAPONS OF MASS DESTRUCTION!
Thanks for the link.
That was sarcasm. Next time, post a fucking link. This is the internet, not paper. Even then, get a fucking pen.
I am Chumbawamba.
I thought he was joking...
http://reut.rs/hFBIcv
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.
How's twitter working out for you Chumba? Life changing? Altering?
ORI
It was fun for about four hours, then I ran out of short things to say.
I am Chumbawamba.
There was no link/article when I posted it - just a headline on the reuters page.
That is the standard charge for farting in an airport.
During a crotch inspection.
That will be good for a 400 point rally. Buy the freaking mushroom cloud.
tool.
Wake me when they arrest a bankster , ok?
wheeeeeeeeeeeeeeeeeeeeee
http://www.currentreports.info/wp-content/uploads/2009/06/8hulk.jpg
Who was stupid enough to buy it anyway? It was never a keeper.
This makes my day.
http://www.zerohedge.com/node/251182/results
You all suck at forecasting.
I am Chumbawamba.
Access denied?
You suck at linking.
Fuck salt!
http://www.zerohedge.com/content/how-long-gm-trades-below-ipo-price
Indeed.
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.
stuff the inventory pipeline much?
Never had a short pay so well. Wheee indeed.
And bragging about profits and bonuses...
anyone have an H1 looking to sell? Need to convert it to Nat gas before the end game here...holla
www.silvergoldsilver.blogspot.com
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
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.
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.
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???
GETCO more likely swimming off Shark Beach with a filet mignon bathing suit.
DIVE, DIVE, DIVE
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.
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.
Buy one cheap.
Convert to natgas for 3000 bucks installed.
Who says history does not repeat...I feel like we are in early 2008 all over again.
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.
Why do you think GM puts OnStar in its vehicles - Repo Bitches!
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.
"Centrally Planned Garbage Motors"
Yet another ZH classic
American Leyland needs to reintroduce 8-track players on their models.
All that huffing and puffing from Barry O, Rattner and the CNBC shills....lol
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.
You just under estimated the foolishness of 112 hedge funds buying this crap, as I did.
+1
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!!!
>>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.
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.
BTFD guys!! what an opportunity!!
SALES LOWER DUE TO BAD WEATHER! AND AL QAEDA!
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
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.
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
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.
CNBS in FULL auto/GM spin mode right now. Phil LeBeau foaming at mouth.
i think he still has Rick Wagoners dick in his ass
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.
Chevy Volt will change the world.
Only if you can recharge it by plugging it into your @ss.
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. :/
Driving Miss Daisy
what took so long ???.....how do i do one of those new CDS against Government Motors
Bought by SWFs...liquidated by SWFs.
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.
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....
Winner! Who else bet that GM's share price would hang in for more than 10 days (weeks?)? High fives all around.
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).