GM Stock Slides To Fresh Post-Bankruptcy Lows

Tyler Durden's picture


Of all curious correlations we could find to demonstrate the collapse in GM stock, which opened for trade back in November 2010 at $35, and just hit an all time post-IPO low at just over half its IPO price, the best one that exemplifies the second great collapse of GM is the amount of dealer inventory, aka channel stuffing, shown on an inverted axis: the lower the price of GM, the more the channel stuffing. Of course, nobody could have possibly predicted that. Just like nobody could have predicted that Greece will need a third bailout, let along hit the IMF goal of 120 debt/GDP in 2020.

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Tue, 07/24/2012 - 15:24 | 2646574 slaughterer
slaughterer's picture

How much is Berkshire Hathaway underwater on their GM position?  Uncle Warren violated some of his own best investing principles when he drank the "Buy America" Koolaid and bought into GM.

Tue, 07/24/2012 - 15:34 | 2646620 Buckaroo Banzai
Buckaroo Banzai's picture

Did you know that "General Motors" in russian is..."General Motors"?

I dunno, I thought that was pretty funny.


Tue, 07/24/2012 - 15:35 | 2646627 battle axe
battle axe's picture

Good investment US Govt. 

Tue, 07/24/2012 - 15:50 | 2646685 Pladizow
Pladizow's picture

Whats the opposite of the Midas touch?

Tue, 07/24/2012 - 15:57 | 2646719 Atlas_shrugging
Atlas_shrugging's picture

wow a final minutes ramp in ES... go figure

Tue, 07/24/2012 - 16:06 | 2646757 Dr. Engali
Dr. Engali's picture


Tue, 07/24/2012 - 16:07 | 2646762 MachoMan
MachoMan's picture

central planning

Tue, 07/24/2012 - 16:12 | 2646797 francis_sawyer
francis_sawyer's picture

community organizing

Tue, 07/24/2012 - 17:34 | 2647211 TruthInSunshine
TruthInSunshine's picture

I'm going to wait to the channels really get stuffed to the gills and then buy a vehicle that's suitable for hauling barbarous relics, but only if it is 80% off government mandated MSRP and carries a lifetime powertrain warranty backed by Geithner.

On second thought, I've discovered one of the keys to being as free as possible under the circumstances; don't buy shit you don't need, no matter how enticing the department of marketing & treasury appears to make "a deal."

So, I'll continue to use the tools I've already accumulated in a productive fashion, rather than add/accrue unecessary and capital draining (no matter how heavily subsidized/discounted) consumables.

Tue, 07/24/2012 - 16:10 | 2646764 smlbizman
smlbizman's picture

the opposite of the midas 'bout the bloomberg headline all day that "investors" dump gold to buy corn and that close....

and how the fuck can they make that correlation....

and can somebody answer who is floorplanning all the dealer inventory?

Tue, 07/24/2012 - 16:19 | 2646832 El Oregonian
El Oregonian's picture

...It's called "Cash for GM Junkers".

Tue, 07/24/2012 - 16:09 | 2646770 Winston Churchill
Winston Churchill's picture

Groping by  Keynes.

Tue, 07/24/2012 - 18:59 | 2647408 MBOB
MBOB's picture

The Crapper touch, in honor of Mr. Crapper, inventor of the water closet.

Tue, 07/24/2012 - 19:01 | 2647411 MBOB
MBOB's picture

The Crapper touch, in honor of Mr. Crapper, inventor of the modern water closet. 

Tue, 07/24/2012 - 15:50 | 2646681 Chuck Walla
Chuck Walla's picture



~ Braack Hussein Obama


or was that Lenin...

Tue, 07/24/2012 - 15:53 | 2646697 graneros
graneros's picture

It's all the same.

Tue, 07/24/2012 - 15:36 | 2646631 Dr. Engali
Dr. Engali's picture

Shit when hasn't he violated them over the course of the last four years?

Tue, 07/24/2012 - 15:57 | 2646718 dmger14
dmger14's picture

Yes he did.  But he's old now and operating under different principles than when he was younger.

Tue, 07/24/2012 - 16:11 | 2646791 El Oregonian
El Oregonian's picture

Serves him right. It couldn't happen to a nicer guy.

Tue, 07/24/2012 - 17:39 | 2647238 rbg81
rbg81's picture

But I thought Obama "saved" GM??  Oops, maybe a little too early to break out the champaigne?

Tue, 07/24/2012 - 20:30 | 2647624 jumbo maverick
jumbo maverick's picture

Mission accomplished

Tue, 07/24/2012 - 21:04 | 2647679 max2205
max2205's picture

$19 looked good on the chart till it didnt

Tue, 07/24/2012 - 21:31 | 2647728 Buck Johnson
Buck Johnson's picture

Trust me soon GM will have to either file for another "bankruptcy" and/or get another govt. bailout.  There stock is getting to low.

Tue, 07/24/2012 - 22:08 | 2647791 Blano
Blano's picture

They'll just do a 5 or 10-1 reverse split.  Problem solved.

Tue, 07/24/2012 - 22:56 | 2647870 FreedomGuy
FreedomGuy's picture

My company just rolled over its entire fleet of company vehicles to switch to Malibu's. We turned in virtually new cars just drawn from fleet. In several decades in my industry dealing with fleet vehicles I have never seen this. It has to be incredibly expensive which means to me that Government Motors is offloading its inventory at at super low price. They are in essence dumping, probably at a loss. I suspect they are still in trouble.

BTW, the Malibu's do not get anywhere near their rated mileage in my experience. I usually beat the rated mpg in most vehicles.

Wed, 07/25/2012 - 01:44 | 2648147 Freddie
Freddie's picture

Uncle Samil El-Hussein Obam backstops every Buffet investment.   Warren does not lose on anything.


Tue, 07/24/2012 - 15:24 | 2646575 zero19451945
zero19451945's picture

Is this a rare case of the "market" actually working? Or is GM being a turd obvious to even the HFT machines?

Tue, 07/24/2012 - 15:28 | 2646592 sessinpo
sessinpo's picture

Or maybe it is that whatever Obama touches, turns to shit. Not that I would want to insult our First Lady, but maybe someone ought to consider wrapping her up in one big depends diaper.

Tue, 07/24/2012 - 15:34 | 2646622 Hedgetard55
Hedgetard55's picture

What makes you think... oh, never mind.

Tue, 07/24/2012 - 15:54 | 2646704 graneros
graneros's picture


Tue, 07/24/2012 - 15:39 | 2646639 Buckaroo Banzai
Buckaroo Banzai's picture

They don't call her "Moose Hell" for nothin'!

Tue, 07/24/2012 - 15:25 | 2646579 Meesohaawnee
Meesohaawnee's picture

is it me or did ben turn the algos on? hes 10 minutes late

Tue, 07/24/2012 - 15:25 | 2646580 Mrmojorisin515
Mrmojorisin515's picture

I was thinking, isn't it funny that autoplants didn't shutdown for the summer and we have a presidential election this year?

Tue, 07/24/2012 - 15:41 | 2646646 knukles
knukles's picture

They're busy building more Volts for the Greater Good of The Free People's Democratic Republic of Humerikah

One more Volt
One more Volt
One more Volt

(wondering if Volts come with a get out of Gulag free card?)

Tue, 07/24/2012 - 15:45 | 2646669 veyron
veyron's picture

It's a giant circlejerk: we bail out GE, GE agrees to buy GM cars, all is well!

Tue, 07/24/2012 - 16:04 | 2646743 francis_sawyer
francis_sawyer's picture

Volt early... Volt often... Oh wait!

Tue, 07/24/2012 - 20:51 | 2647660 El Oregonian
El Oregonian's picture


Tue, 07/24/2012 - 16:05 | 2646750 ParkAveFlasher
ParkAveFlasher's picture

Sadly enough, I'm sure its workers have been sold on some kind of "we can do it!" initiative and handed over salary, benefits, etc in exchange for stock holdings.  In fact many probably had no choice.  Oh wait

Tue, 07/24/2012 - 20:58 | 2647671 knukles
knukles's picture


Most of the fucking stock was stuffed in the UAW penion palns
So when they go belly, the PBGC takes 'em over and we, the taxpayer get fucked, again.


Tue, 07/24/2012 - 22:38 | 2647839 jerry_theking_lawler
jerry_theking_lawler's picture

I sh*t you not....this is real.

Go to my local post office (small with only a post master....that is a waste upon itself). I'm in my late 30s and have used this post office most of my life. What do I see setting next to the building......a shiny new GM car with .gov plates. I asked the postmaster if that was a new 'carrier car'. PM said nope, it was 'their' car for taking care of official USPS business. What! This PM drives their personal car to work, drives the .usps car to lunch and back, then their personal car home. That is it.

This PM has never had their own private car. This was simply a way for the failing USPS to support the failing GM.

If people would only open their eyes and see what really is happening, especially to their kids and grandkids, they would revolt.

Wed, 07/25/2012 - 01:46 | 2648151 Freddie
Freddie's picture

Hope & Chains - muslim style with El-Barry.

Tue, 07/24/2012 - 16:26 | 2646871 SoCalBusted
SoCalBusted's picture

You know they're fucked when you can now lease a Chevy Volt.


Tue, 07/24/2012 - 18:19 | 2647339 smiler03
smiler03's picture

What a great link! No fault of yours but the website insists on a valid zip code. If you don't know one, you don't get in. I'm in the UK and I certainly can't be bothered to find a "valid zip code", fuck Chevrolet!

Tue, 07/24/2012 - 19:39 | 2647512 Diogenes
Diogenes's picture

Try Beverley Hills 90210

Tue, 07/24/2012 - 23:41 | 2647972 cycloptron
cycloptron's picture

There is a clue in the link.

Tue, 07/24/2012 - 17:43 | 2647248 GeezerGeek
GeezerGeek's picture

If reelected, or otherwise retained in office, Barack Obama will issue an executive order imposing a tax on anyone not owning a Volt. Waivers will be granted to union members and select others.

Tue, 07/24/2012 - 22:10 | 2647797 Blano
Blano's picture

Those new Volt ads where people brag about saving money on gas after paying thousands extra for the car are downright revolting.  Especially the broad who says she's saving her money for a trip to Hawaii.  Spend spend spend!!!

Tue, 07/24/2012 - 15:25 | 2646582 CunnyFunt
CunnyFunt's picture

PPT to the rescue @ 1524

Tue, 07/24/2012 - 15:42 | 2646653 Stoploss
Stoploss's picture

Gold goes up, euro goes up, and dollar goes down, all at the exact same time.

Really?? Potter?

Tue, 07/24/2012 - 15:26 | 2646583 miker
miker's picture

They don't have any money to buy their stock up. 

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