Does that make you happy? Would you hire Obama as a money manager. Plus, he stiffed the bond holders and the white collar retirees for several billion more. All, to appease his union friends.
Here’s the math. We, the United States of America, still own 500 million shares of GM. To break even the government would have to sell those shares at $50 a share. The stock closed at $29.97 a share. Down from the IPO price of $33 a share.
The government can begin selling shares after May 22. The Treasury announced plans to begin selling shares this summer.
After all the hoopla about the success of GM under the government management, things have begun to so south. Gas prices have gone up. Management turnover has been like a revolving door. This does not help with investor confidence. GM had a sales incentive program in January and February. The street believes that may temper 1st quarter earnings. The bondholders stiffed will be given warrants and stock for existing GM shares later this month. Many may cash out. It is unlikely the Treasury will sell in July, since they may want 2nd quarter earnings announced first.
Anyone surprised about how this turned out? With the government out of the picture the UAW will be calling the shots. Won’t that be a great investment?
