Obama Administration Calls Market Top: Seeks Fast-Track GM IPO
Taking a card from the Private Equity deck, the Obama Administration has indicated that it wants to fast-track the Initial Public Offering of General Motors.
Bloom said the U.S. government, which now holds a nearly 61-percent stake in GM, wanted to "err on the side of getting out a little faster" from the investment it took as part of a policy to restructure the automaker in bankruptcy.1
Well, that "let's get the fuck out of here" rationale always seemed to inspire confidence in prospective buyers before the credit crunch, right? Outstanding marketing work on this one. Perhaps Quadrangle will want a large allocation.
- 1. "U.S. wants to fast-track GM IPO," Reuters, November 18, 2009.
(4 votes)
on Wed, 11/18/2009 - 14:12
#134815
One needn't be a genius to realize that the GM IPO is the only reason the stock market still is where it is.
Come hell or high water, the GM bail-out WILL return a profit to the taxpayer. This is essential, as it paves the way for the myriad other bail-outs that are yet to come.
on Wed, 11/18/2009 - 14:30
#134847
So that means there's not going to be any sort of correction until Q1 2011?
on Wed, 11/18/2009 - 14:14
#134816
I have the new ticker for the GM IPO, (DTF) Destined To Fail.
on Wed, 11/18/2009 - 14:22
#134827
Short DTF.
on Wed, 11/18/2009 - 15:25
#134951
Ticker "DTF" already in use.
on Wed, 11/18/2009 - 15:31
#134962
Short Symbol - DTFU
on Wed, 11/18/2009 - 14:30
#134843
Why don't they just send stock options to the taxpayers.
on Wed, 11/18/2009 - 14:50
#134885
I was just in the men's room, thankfully the stock option dispenser had just been reloaded.
on Wed, 11/18/2009 - 14:50
#134887
me thinks the president already has an underwriter in mind. could it beeeeeeeee... satan? um, i mean, vampire squid?
on Wed, 11/18/2009 - 15:12
#134928
Remember the old days when a company had to have actual earnings in order to be slected to list shares on the NYSE????
on Wed, 11/18/2009 - 15:41
#134979
No, I do not remember. I thought you just had to have a business plan with "paradigm shift" in it somewhere.
on Thu, 11/19/2009 - 01:28
#135564
wtf are 'earnings'?
on Thu, 11/19/2009 - 11:58
#135850
LMAO
on Wed, 11/18/2009 - 15:15
#134936
Hey, GM only lost a billion last quarter. I'm sure that beat expectations.
on Wed, 11/18/2009 - 15:16
#134938
Why wouldn't Obama reconstitute GM as a limited partnership? That way the union members could keep all those abnormal profits for themselves.
Yeah, I pretty much wrote that to make myself laugh.
on Wed, 11/18/2009 - 15:17
#134939
Read the article again. He wants the IPO and a stable stock market till the the 4th quarter of 2010, likely till after the mid-term election.
on Wed, 11/18/2009 - 15:20
#134945
Few are aware of this, it's known as the "Cloward-Piven Strategy." It is losely defined as (see below blurb). Tell us...is this not plausable under Obama and his brilliant team? We have idiots running the asylum.
First proposed in 1966 and named after Columbia University sociologists Richard Andrew Cloward and Frances Fox Piven, the “Cloward-Piven Strategy” seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.
Inspired by the August 1965 riots in the black district of Watts in Los Angeles (which erupted after police had used batons to subdue a black man suspected of drunk driving), Cloward and Piven published an article titled "The Weight of the Poor: A Strategy to End Poverty" in the May 2, 1966 issue of The Nation. Following its publication, The Nation sold an unprecedented 30,000 reprints. Activists were abuzz over the so-called "crisis strategy" or "Cloward-Piven Strategy," as it came to be called. Many were eager to put it into effect.
In their 1966 article, Cloward and Piven charged that the ruling classes used welfare to weaken the poor; that by providing a social safety net, the rich doused the fires of rebellion. Poor people can advance only when "the rest of society is afraid of them," Cloward told The New York Times on September 27, 1970. Rather than placating the poor with government hand-outs, wrote Cloward and Piven, activists should work to sabotage and destroy the welfare system; the collapse of the welfare state would ignite a political and financial crisis that would rock the nation; poor people would rise in revolt; only then would "the rest of society" accept their demands.
on Wed, 11/18/2009 - 15:45
#134986
Yeah, I learned of that several months ago when the Acorn stuff was getting traction. Still not sure if it's tin-foil hattery or not.
I suppose if the Goldman Sachs puppet squid theory is plausible, why not this one.
on Wed, 11/18/2009 - 15:48
#134996
>> poor people would rise in revolt; only then would "the >> rest of society" accept their demands.
No, they will get gunned down in short order by pissed off gunowning middle class workers.
That's my take anyway.
on Wed, 11/18/2009 - 15:55
#135004
I don't know why people think they need a strategy. TPTB just do whatever the fuck they want, then lie about it. Been going on for years.
on Wed, 11/18/2009 - 20:13
#135361
Or you wait until the Leviathan has gotten too big for it's britches and collapses under the weight its own ponderous bureaucracy.
on Wed, 11/18/2009 - 15:46
#134990
Could you refer this to the Highly Unusually lucky Options Trading Dept Please:
"Takeover chatter surrounding employment company Monster Worldwide (MWW) resurfaced this morning, which instigated a pop up in the stock and subsequent call buying.
Morning reports said News Corp. (NWS) is the latest candidate to rumored to be interested in acquiring MWW. Shortly after this takeover rumor hit the wires, volume in the December 17.5 and November 15 strikes spiked.
The out-of-the-money December 17.5 calls have traded more than 17,500 times today versus current open interest of 1,600 contracts, indicating investors traded these options to open. These calls have gained 30 cents so far on the day to a price of around 50 cents. The delta of these calls is roughly 33, and MWW shares have rallied 78 cents, or 5%, to $15.99. That means these calls should climb just 33 cents for every dollar move in the underlying, but the calls are currently up more than the delta would suggest. Additionally, the call buying action we saw today has increased implied volatility on the December call to 56.
Additionally, nearly 10,000 November 15 calls have crossed the tape so far today versus open interest of 4,900 contracts, but this action could merely be an investor getting in on the rally days prior to expiration.
Call buyers are expecting MWW shares to expire higher than $18 (the strike price plus the premium paid) come December expiration, but if the stock gains value before they expire, they could sell these contracts to book profits.
Normal daily options volume in MWW is just 465 contracts, so the number of contracts trading at this strike is highly unusual.
on Wed, 11/18/2009 - 15:47
#134992
It's like I'm watching it in HD.
on Wed, 11/18/2009 - 15:52
#134999
There demands being what exactly?? More hand-outs, brand new bimmer, free Harvard education?
Interesting post.
on Wed, 11/18/2009 - 15:55
#135002
What exactly would their demands be?
on Wed, 11/18/2009 - 15:57
#135006
If anyone buys the new and improved GM stock they have just reinforced the Wall Street crowd that "Yes, the American investor is a moron", lets next see if we can IPO Dog doo doo and sell that to them!
on Wed, 11/18/2009 - 16:04
#135013
"An IPO for GM could come as soon as the fourth quarter of 2010 if the automaker is meeting its recovery targets and the financial markets are receptive, Ron Bloom, the head of the U.S. government's autos task force told Reuters."
The IPO is at least one year out, and you're using this as evidence of a market top today?
on Wed, 11/18/2009 - 16:06
#135017
I'm holding our for the Chysler IPO
I only pray they bring back Nardelli
on Wed, 11/18/2009 - 17:05
#135076
Funny Obama called the bottom of the market also
http://www.politico.com/news/stories/0309/19567.html
on Wed, 11/18/2009 - 17:45
#135156
The IPO will happen before the 2010 elections.
I'm lovin the new camaro ss:
http://motorcitytimes.com/mct/wp-content/uploads/2009/08/2010-Camaro5-kits-3.jpg
that one has a sick body kit
on Wed, 11/18/2009 - 19:53
#135335
Looks like a Mustang. GM always had great engine-ers, but inbreds rand the show.
on Wed, 11/18/2009 - 18:44
#135244
*Inside the white house.*
"Quickly..someone resurrect Drexel Burnham.
It's time for a roadshow to China."
on Wed, 11/18/2009 - 18:54
#135256
When to do the GM IPO? That's easy just timed it to the 2nd half of 2010. WTF? These guys talk as if they have no stake in GM.
Bloom must have one hell of a good crystal ball. Perhaps it would be prudent to wait until the market conditions are right before doing the IPO, and what per chance would these conditions be? Mr. Bloom, I never worked for an Auto company expert.
A successful GM IPO is only viable, with its current market share, through reduced incentives, at least a 12M SAAR for two successive quarters, and timed to some very high profile product launches like the Volt and a 500Hp Corvette with plans to race at La Mans. Win on Sunday sell stock on Monday.
Mark Beck
on Wed, 11/18/2009 - 20:01
#135346
Wahchamean? Anybody taken a look at the FED's balance sheet...the "other" miscellaneous items? Or how about all those discount window loans commercial banks otherwise constrained from excessive specualtive non-bank activity by the Bank Holding Company Act? Whodathunk there be any malfeasance or schenanigans whatsoever these days.
on Wed, 11/18/2009 - 20:12
#135359
"Well, that "let's get the fuck out of here" rationale...."
This one is a beauty! Love that brain of yours....
By the way Marla, how many shares you gonna be in for?
on Wed, 11/18/2009 - 23:20
#135486
Shit is officially starting to hit the fan.
on Wed, 11/18/2009 - 23:49
#135507
Ford appears to be doing much better than GM. An investmentg in Ford will likely do better over the next few years in my opinion.
time123
http://invetrics.com
on Thu, 11/19/2009 - 13:13
#135985
A successful ipo from the volt? the volt is a joke. With a 16k price differential between the volt and a normal car that gets 35mpg, anyone buying the volt is a moron. 40 miles a day with 5 dollar gas and .084 cents/kwh takes the volt 12 years to payout. good deal sign me up...
on Sun, 11/22/2009 - 15:19
#138790
Yes, so the Volt is most likely not a viable profit making venture for GM. However, it still has PR value. That is, GMs commitment to being a leader in EV technology. The IPO will be presented as a corporate package deal, of which will be new technologies like the EV.
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