Lehman ABS CorTS 2001-08 7.375% General Motors (CCYPQ)

[ChuckD-MSB]

Actually I think GM wishes they were selling Volts, I dont think they have sold any yet at any price.

[Superfly15]

GM is going to currently be worth 63b market value, F is worth 57b. GM has a 35%~ stake by the US Treasury, F does not. F is increasing brand awareness worldwide and has Mullally as the CEO, GM is selling Volts for 40G a piece and calls that the "NEW GM".

F looks more undervalued than GM to me at this point, not going to touch the new common stock.

[marayatano]

UPDATE 4-GM boosts IPO pricing, offers more preferred shrs

Tue Nov 16, 2010 12:40pm EST

* GM confirms raising IPO price range to $32 to $33/share

* GM IPO now to raise about $12 bln in common stock

* Selling $4 bln preferred stock, $1 bln more than planned

* IPO to give GM $63 bln market value, near US break-even

* GM weighing a bigger offering amid high demand -source (Adds background from source on IPO size, reduced dividends on preferred shares, other details)

By Soyoung Kim and David Bailey

NEW YORK/DETROIT, Nov 16 (Reuters) - General Motors has increased the preferred stock on offer by a third and raised the price for common stock in its landmark IPO, bringing the U.S. government closer to break-even on its controversial bailout.

GM [GM.UL] said on Tuesday it now plans to sell 365 million common shares for $32 to $33 each, raising about $12 billion. The mid-point of the new range represents an 18 percent increase from the previous share range of $26 to $29.

The automaker also increased the size of its preferred stock offering by $1 billion to $4 billion in a move that will strengthen its balance sheet by paying down pension debt -- one of the concerns potential investors had cited heading into the initial public offering.

Including an overallotment provision for both common and preferred shares, the GM deal is now set to raise almost $18.5 billion if it prices at the high end of the new price range.

With GM's advisers expecting excess investor demand even at the higher price range, shareholders led by the U.S. Treasury are weighing whether to expand the number of common shares on offer, a person familiar with the matter said on Tuesday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

TAKE A LOOK on GM's IPO: [ID:nN11173673]

Former head of US Auto Task force speaks to Reuters

Insider on GM's competitive position:

link.reuters.com/gur55q

http://www.reuters.com/article/idUSN1612529320101116

[Superfly15]

Our own government is pumping our money in via POMO into a lost cause that we already bailed out. LMAO

[marayatano]

O M G... Look... They are pumping it up to the $32 to $33 range, up from $26 to $29.

Oversubscribed by about seven times now.

AP Source: GM to raise IPO stock price range
AP Source: Investor demand prompts GM to raise stock price range to $32 to $33 in Thursday IPO

Tom Krisher, AP Auto Writer, On Monday November 15, 2010, 8:25 pm

DETROIT (AP) -- Investor demand for General Motors' shares is so high that the automaker will raise the price range of its common stock to $32 to $33 when its initial public stock offering begins on Thursday, a person briefed on the sale said Monday night.

GM is also planning to sell 9 million more preferred shares than originally expected, the person said.

The final price will be set Wednesday after the stock markets close, but GM intends to announce the new range and the additional preferred shares on Tuesday morning in a filing with the U.S. Securities and Exchange Commission, said the person, who didn't want to be identified because the moves have not been officially announced.

Earlier this month GM said its owners, including the U.S. government, will sell 365 million common shares for $26 to $29 each. The company won't sell common shares, but had planned to sell 60 million preferred shares for $50 each.

But since then, investor demand has been so high that GM and bankers handling the deal have decided to raise the common stock price range and issue more preferred shares, the person said. The preferred stock price will stay at $50, but GM's total cost for those shares will remain about the same because it's reducing the expected dividend rate from a range of 5.5 to 6 percent to between 4.75 and 5.25 percent, the person said.

The preferred shares will be converted to common stock in 2013. Bankers have the option to sell roughly 55 million more common shares, although they have not yet decided to do that, the person said.

Orders for the common shares are now seven times higher than the number of shares being offered, said the person, who expects the banks to stop taking orders for the IPO on Tuesday afternoon, two days before the actual sale.

GM, just 16 months out of bankruptcy protection, has impressed analysts and investors with its third-straight quarterly profit and a prediction of much bigger earnings if U.S. auto sales continue to improve.

Any share price increase would certainly be a boon for GM's largest stockholder, the U.S. government, which is trying to get back the $50 billion it gave GM last year to get through restructuring.

"There is legitimate demand for this," said Scott Sweet, senior managing partner of the research firm IPO Boutique.

GM spokesman Selim Bingol and Treasury Department spokesman Mark Paustenbach would not comment on any possible price increases.

At the midpoint of the current common stock price range, $27.50, the sale would bring in just over $10 billion for the U.S. government and other GM owners, the Canadian and Ontario governments and a union health care trust fund. The U.S. government would get over $7 billion.

But if the share price rises to $33, the total figure jumps to $12 billion, with the U.S. government getting roughly $8.7 billion. The preferred shares could bring in $3.5 billion at $50 each.

By selling some of its shares in an IPO, the U.S. government would reduce its stake from 61 percent to 43 percent. That could drop to 35 percent if bankers take the option to sell more common shares.

That could ease animosity toward GM because of the government bailout, which the company said has irked some potential buyers and hurt its sales.

Ontario Finance Minister Dwight Duncan has said the federal and Ontario governments will sell about 30 million of their shares in GM.

GM, though, can't raise the share price too high because it could exceed limits placed on investors' orders, Sweet said.

Demand for the automaker's shares is rising as its financial outlook improves. Last week, GM announced a third-quarter net profit of $2 billion, bringing its earnings to a healthy $4.2 billion for the year. Also, in presentations to investors, GM said its debt and labor costs have been cut so much that it can break even at the low point in an auto sales slump. When sales fully recover, the company could make $17 billion to $19 billion per year pretax.

The possibility of a price increase comes during a week that could be the biggest for IPOs since 2007, according to investment adviser Renaissance Capital LLC. The IPO market has improved steadily since August 2009. The sector had been almost frozen for nearly a year after massive losses on mortgage bonds upended global credit markets.

Sweet wrote in a note to investors that two other IPOs slated for this week also have more orders than shares, management consultant Booz Allen Hamilton Inc., and the broker-dealer LPL Investment Holdings Inc.

Some of GM's investor demand is coming from overseas, including automaker SAIC, GM's government-owned partner in China, which may buy $500 million worth of shares. GM also has courted investment funds in the Middle East and Europe.

Foreign investment, which is common in the U.S. auto industry, could come with a political backlash because GM stock in the IPO is largely unavailable to individual buyers.

Brokerages such as Charles Schwab and Scottrade, which handle trades for smaller investors, aren't taking part in the GM offering. Fidelity has an agreement with GM underwriter Deutsche Bank to sell shares to retail investors. But to place an order, investors must have at least $500,000 in assets with Fidelity, make 36 trades a year or be a premium investor, which normally is for high net-worth clients.

AP Source: GM to raise IPO stock price range
AP Source: Investor demand prompts GM to raise stock price range to $32 to $33 in Thursday IPO

[Superfly15]

POMO is sure doing the trick. I would buy F over GM any day of the week, but if the PPS is going to be pumped up GM is a good option as well.


PS ty for the timely response earlier.

[marayatano]

Seems as if demand is very high for GM. It is (may be) priced outside of its original $26 to $29 range on the upper end.

GM seen pricing IPO above $30 per share: sources
reuters


On Monday November 15, 2010, 3:46 pm EST

By Soyoung Kim and Clare Baldwin

NEW YORK (Reuters) - General Motors Co (GM.UL) is expected to price its initial public offering at a minimum of $30 per share, above the initially proposed range, two people familiar with the matter said on Monday.

A higher per-share price reflects robust investor demand for the restructured U.S. automaker and would cut the expected losses for the U.S. Treasury in the first tranche of the stock sale.

GM's IPO is expected to price on Wednesday and begin trading on the New York and Toronto Stock Exchanges on Thursday. At $30 per share, GM would raise about $10.95 billion in common stock.

Based on a diluted share count of 1.9 billion, a $30 per share price would give GM a market value of about $57 billion. GM needs a market value of roughly $70 billion for U.S. taxpayers to break even on their $50 billion bailout.

Speaking to Reuters in Detroit on Monday, former head of the Obama Administration's auto task force Steve Rattner said GM's IPO will almost certainly price above the top end of the $26 to $29 per share price range it filed for.

"Absent some dramatic change in the world in the next 48 hours, this will definitely price above the range," Rattner said.

The success of GM's IPO, coupled with renewed investor confidence in the auto market, will also help Chrysler's bid to return to the stock market in the second half of 2011, Rattner said.

GM has filed to sell about $10 billion worth of common stock at the midpoint, and $3 billion worth of preferred shares, but is seeing outsized demand even before the order books close.

GM is returning to the public markets a little over a year after a government-backed restructuring, from which the U.S. Treasury emerged as the majority shareholder with a 61 percent stake.

The government-backed restructuring was designed to leave GM with sharply lower costs and higher profit potential.

GM's IPO is expected to be the second-biggest U.S. IPO after Visa Inc (NYSE:V - News) and one of the biggest IPOs of all time, globally.

GM is unlikely to file an amended prospectus with a higher price range, the sources said.

China's SAIC Motor Corp (Shanghai:600104.SS - News) is set to take at least a 1 percent stake in GM as part of the IPO, one source said.

While other automakers have expressed interest in taking a stake in GM's IPO, SAIC will be the only automaker to buy into the offering, that source said.

(Reporting by Soyoung Kim, Clare Baldwin in New York and Philipp Halstrick in Frankfurt, additional reporting by James Kelleher in Detroit; Editing by Phil Berlowitz and Matthew Lewis)

http://finance.yahoo.com/news/GM-expected-to-price-IPO-rb-2174481115.html?x=0&sec=topStories&pos=main&asset=&ccode=

[marayatano]

Sorry, I don't know when ccypq will get their shares.

I do know that the bk estate need to.distribute to direct owners of senior/union/general unsecured creditors first. Then you have to wait for the trustee of ccypq to distribute.

So I don't know, may have to contact ccypq trustee, but they will tell they have to wait for distribution from bk gm first.


Sorry, typing from my phone.

Imo

[jcpny777]

Once the stock is available for me to sell, I will sell,

maray any guesstimate on when we get our new shares tia

[marayatano]

Actually I have already sold a while ago, BUT I do hold the original GM mini senior notes which I am going to keep since the GM IPO is oversubscribed by at least 5 times and the majority of the new GM holders will be institutional holders.

I was mainly interested in the first set of warrants.

Once the stock is available for me to sell, I will sell, anticipating there will be a dip since people in the same situation as me (holding the mini senior notes) will take advantage to cash out.

Then, I may buy back on the dip and hold (just depends on how the the market is at that time - i can't tell the future).

I am not a fan of American cars, however, I think that there are enough "pro-Americans" holders to make GM's PPS stable and appreciate in the long run.

imo

[Superfly15]

You have any shares you're going to hold through mara?

[marayatano]

China to play role in General Motors IPO
GM IPO marks 1st time Chinese government participates in big US-issued stock offering
ap

Sharon Silke Carty, AP Auto Writer, On Saturday November 13, 2010, 1:55 pm

DETROIT (AP) -- Among the banks helping General Motors with its initial public stock offering next week are two identified by initials only: ICBC and CICC.

Americans uncomfortable with U.S. government ownership of General Motors may want to hear more: One of those banks is the Industrial and Commercial Bank of China, one of China's four big central government banks. The other, China International Capital Corp., is a joint venture run primarily by Central Huijin Investment Ltd., an arm of the state, and Morgan Stanley.

This is the first time Chinese government banks have participated in a major U.S.-issued IPO, according to IPO tracking firm Dealogic. The banks are listed as co-managers in the offering, meaning they will sell a portion of the new shares.

Chinese automaker SAIC, GM's partner in China, is finalizing plans to buy a roughly 1 percent stake, worth about $500 million, in GM's IPO, the Wall Street Journal reported Friday. SAIC is owned by the Shanghai city government.

Other foreign investors that are interested include several sovereign wealth funds located in the Middle East and Asia. The Journal says those funds, which manage the finances of royal families and some nations, could invest $1 billion in GM's IPO.

There could be political backlash for President Barack Obama, who has spent the past week in Asia addressing economic issues, like currency exchange differences between the U.S. and China. Obama has argued that China artificially deflates its currency, the yuan, in an attempt to make its exports cheaper.

Many Americans were unhappy when the U.S. bailed out GM, calling the company "Government Motors."

GM 's Nov. 18 stock offering will reduce the U.S. Treasury's stake in the company from 61 percent to 43 percent, and will help payback the more than $50 billion that taxpayers invested in GM to keep it from collapsing. More stock offerings will happen in the next year or so, letting the government fully divest from the automaker.

"It's a very political topic, but what Americans need to remember is that General Motors is an international company," says Rebecca Lindland, an analyst with IHS Automotive. "If we want to get our money back, we need to understand that they have to do business on a global basis."

The U.S. Treasury has been clear that international investors are welcome to invest in GM, and many outside the U.S. are considering taking stakes in the company.

"We expect that a large and diverse group of institutional investors will be offered an opportunity to participate, with no single investor or group of investors receiving a disproportionate share or unusual treatment," the Treasury said in a recent statement.

The U.S. has become a popular haven for Chinese investors, second only to Australia in attracting Chinese stock investments, says Derek Scissors, a research fellow at conservative think-tank The Heritage Foundation. The first half of 2010 was a record year for China, Scissors says. China has sunk $45 billion into investments and engineering projects worldwide. About $1.6 billion of those investments came to the U.S.

In China, businesses operate with the funding and blessing of the government, says Tim Dunne, director of global automotive operations for J.D. Power and Associates. The government behaves like an interested shareholder, ensuring companies have competent management and ensuring the companies boost economic growth in their regions.

Many Chinese automakers are looking for a way into the U.S. market, he says. China is the largest car market in the world, but the U.S. is the most profitable, he says.

"The amount of money changing hands here is much greater," he says. The average selling price of a car in the U.S. is $27,500, compared with about $17,000 in China. "Multiply that over millions of vehicles, and it's quite a difference."

SAIC and GM already have a long-standing partnership in China -- GM could not sell cars in China without partnering with a local business -- and it's unclear what size stake SAIC may take in GM. The deal would need Chinese government approval.

Chris Theodore, president of consulting firm Theodore & Associates, says SAIC's investment in GM is likely an attempt to strengthen its ties with the automaker. Theodore, who was part of a group that tried to take over Volvo before it was sold to China's Geely group, says SAIC isn't the kind of company that can branch out into U.S. sales. Most of its models use GM technology and are essentially GM cars.

"They rely on GM for a lot of their profitability," Theodore says.

Michael Maduell, president of the Sovereign Wealth Fund Institute, a California-based group that watches sovereign wealth fund investments, says global investors are looking at the U.S. because they believe the overall market is undervalued. Other potential investors in GM include Abu Dhabi's Mubadala and Singapore's Temasek, which are both known for actively investing in companies, Maduell says.

Investors are "looking at emerging markets, like China and India, but all those assets are overvalued," Maduell says. "America still has a lot of fantastic investment opportunities in real estate and small- to mid-cap stocks."

http://finance.yahoo.com/news/China-to-play-role-in-General-apf-4028945751.html?x=0&sec=topStories&pos=main&asset=&ccode=

[marayatano]

Big stock offerings next week could boost markets
Big initial offerings for stocks such as General Motors, Caesars may boost market interest
ap

Daniel Wagner, AP Business Writer, On Friday November 12, 2010, 5:59 pm EST

WASHINGTON (AP) -- In the world of new stock offerings, everything about next week is big: The number of deals, the amount of money expected to be raised and the profiles of the companies going public.

The action is likely to draw a wide range of investors into the U.S. stock market. If investors snap up stock of companies such as General Motors Co. and casino operator Caesars Entertainment Corp., that could win over skittish traders who have taken refuge in the relative safety of bonds.

Stock in the week's biggest deal, General Motors, already may be scarce. Investment bankers handling the GM sale have more orders than stock for both the 365 million common shares and 60 million preferred shares that will be sold on next week, a person briefed on the sale said Friday.

Orders for preferred stock amount to more than twice the number of shares, while orders for common stock are four to five times the number available, said the person, who spoke on condition of anonymity because he is not authorized to speak publicly about the sale. If demand remains high, GM could price the stock at the high end, or above, the $26 to $29 range it expects.

The market for initial public stock offerings has been heating up and providing good returns. The FTSE Renaissance Composite IPO index, which tracks the performance of stocks that had IPOs in the past two years, is up nearly 13 percent this year. By comparison, the broad Standard & Poor's 500 index has gained 9 percent in that period. Large institutional investors have snapped up most of the shares from new stock offerings.

The General Motors IPO could change that, said Kathleen Smith, an IPO expert and founder of investment advisor Renaissance Capital LLC. Most recent IPO investments have come from funds that specialize in initial public offerings of stocks, she said. After next week, Smith said, managers of smaller portfolios and non-specialists are likely to take an interest.

"This is going to be a consciousness-raising IPO for a broader group of investors who have not been particularly interested in the IPO market," Smith said.

But it could prove frustrating for retail investors who want to get in on the deal. The U.S. government has said that smaller investors will be able to participate in the offering of General Motors, which was rescued from near-collapse by taxpayer bailouts worth a combined $51 billion, but brokerages that sell to smaller investors including Charles Schwab and Scottrade aren't taking part in the offering.

Fidelity has an agreement with GM underwriter Deutsche Bank to sell shares to retail investors, said spokesman Steve Austin. But to place an order, investors must have at least $500,000 in assets with Fidelity, make 36 trades a year or be a premium investor, which normally is for high net-worth clients, Austin said.

Treasury spokesman Mark Paustenbach would not comment on small investors' access to the GM sale.

Besides General Motors and Caesars, next week's big IPOs include management consultant Booz Allen Hamilton Inc., the massive broker-dealer LPL Investment Holdings Inc. and electronics maker Aeroflex Holding Corp.

With 10 deals expected to come to market next week, it will be the most active period for IPOs since 2007, according to Renaissance data.

The offerings could raise about $12.5 billion. That's the biggest week since March 2008, when nearly $18 billion was raised through IPOs with Visa Inc.'s deal raising $17.86 billion of that.

The IPO market has improved steadily since August 2009. The sector had been almost frozen for nearly a year after massive losses on mortgage bonds upended global credit markets.

Chinese listings have fared especially well. Of the 10 2010 IPO stocks that have more than doubled from their offering prices, half are Chinese. Yet Chinese companies represent only one-fifth of the total IPOs, said David Menlow of the research firm IPOfinancial.com.

He said marquee names like General Motors and Booz Allen Hamilton will remind investors that some U.S. companies are poised for growth.

"There's significant cash on the sidelines that's now being redeployed," Menlow said. "We're seeing higher levels of confidence on the part of the investors and in the larger quantity of deals coming to market," he said.

Low bond yields also play a role. The Federal Reserve announced last week a plan to buy $600 billion in long-term Treasurys over the next eight months. By creating that extra demand, the Fed action drives down interest rates, making bonds less attractive to investors.

A lot of companies have postponed plans to go public, leading to an enormous backlog. Many were delayed because the companies had unrealistically high expectations for what their offerings should fetch. If next week's deals take off, more of those companies will go public in the coming quarters, analysts said.

Analysts don't expect a boom like the tech bubble of the late 1990s, when 100 deals or more came to market in some weeks.

But if the coming IPO wave draws attention and cash to U.S. companies, analysts said, that could spur more reinvestment in the nation's economy and into stocks of U.S. companies.

"If (GM) does well next week," said John Fitzgibbon, founder of research firm IPOScoop.com, "well -- it's like honey attracts flies,"

AP Automotive writer Tom Krisher in Detroit contributed to this report.


http://finance.yahoo.com/news/Big-stock-offerings-next-week-apf-2747433984.html?x=0&sec=topStories&pos=1&asset=&ccode=

[marayatano]

Nice, multiple times oversubscribed...

GM has orders for $60 billion in stock: sources

By Clare Baldwin and Soyoung Kim

NEW YORK | Fri Nov 12, 2010 3:21pm EST

NEW YORK (Reuters) - Investors have put in orders for $60 billion of common stock in General Motors Co's initial public offering as of Friday, six times the amount being offered, three people familiar with the matter said.

Investor demand for GM's common shares is still rising, the sources said. GM filed with U.S. regulators for the sale of only about $10 billion worth of common stock.

There is also "excess demand" for the $3 billion worth of preferred shares GM plans to sell, the sources said.

The robust demand suggests that GM's IPO will likely price around the top end of the $26 to $29 per share range and that the full overallotment option -- additional shares underwriters can sell to help stabilize the stock after it begins trading -- will be exercised, the sources said.

The full overallotment could take the total IPO amount to as much as $15.65 billion including both common and preferred shares, making it the second-biggest U.S. IPO ever, after Visa Inc.

It would also cut the U.S. Treasury's stake to just over 40 percent. The Treasury currently owns 60.8 percent of GM common stock as a result of the automaker's $50 billion bailout.

GM is still accepting investor orders for shares in the IPO and is not expected to close the order books until early next week, the sources said.

The sources did not have permission to speak publicly and declined to be named.

Dan Cheng, a consultant at A.T. Kearney, said GM's reception could show that investors are more confident that the auto industry has come through the crisis of the past two years with sharply lower costs and higher profit potential.

"There's already a tremendous amount of interest because (GM) restructured themselves completely," said Mirko Mikelic, a fixed-income portfolio manager at Fifth Third Asset Management, who plans to buy GM's preferred shares.

ASIA, MIDDLE EAST BUY

GM is in the final stage of talks to sell equity to Chinese partner SAIC Motor Corp as part of the IPO and is likely to reach an agreement over the weekend, three sources said. The stake is expected to be less than $2 billion, two of the sources said.

Middle Eastern and Asian sovereign wealth funds have also committed to a combined $2 billion stake, the sources said.

In October, GM held meetings with Singapore-based GIC and Temasek Holdings, Kuwait Investment Authority, Qatar Investment Authority and the Abu Dhabi Investment Authority as a precursor to the funds potentially buying into its IPO.

While selling a big chunk of shares to overseas state-backed investors such as SAIC could trigger a political backlash, GM's advisers and underwriters have argued those investors could help provide long-term stability to the price of GM's stock Retail investors are expected to account for about 20 percent of the IPO, two sources said. There is currently retail demand for $2 billion to $3 billion worth of shares, one source said.

GM was initially planning to allocate as much as 30 percent of the IPO shares to retail investors but shifted some of that allocation to institutional investors, one source said.

"I think at $26 to $29 the shares look very cheap. I would not be surprised to see the final pricing come up a little bit. My own valuation is currently $44 per share," said David Whiston, an analyst at Morningstar.

(Reporting by Clare Baldwin and Soyoung Kim in New York and Philipp Halstrick in Frankfurt and Kevin Krolicki in Detroit, editing by Matthew Lewis and Gerald E. McCormick)

http://www.reuters.com/article/idUSTRE6AB43H20101112

[marayatano]

November 12, 2010, 12:16 pm I.P.O./Offerings


For Some, Tough Entry Into G.M.’s I.P.O.
By MICHAEL J. DE LA MERCED


Individual investors who want to buy a piece of the new General Motors when it goes public next week may be out of luck.

Three major brokerage firms — Charles Schwab, TD Ameritrade and E*Trade — aren’t taking customer orders for the G.M. initial public offering, CNBC reported Friday. Why? They’re not being allocated shares.

Demand for the offering has been very strong, and various media reports have said that the stock sale could exceed the $29 that G.M.’s underwriters had specified as the upper end of the price range.

But depriving three big brokerage firms of allocations seems to be a little at odds with what the Treasury Department, the company’s biggest shareholder, had hoped to achieve. From the Treasury Department’s guidelines for the I.P.O.:

Retail investors. We expect that interested retail purchasers will be given ample opportunity to participate, consistent with appropriate commercial practices aimed at maximizing our return and creating a stable trading market for the shares.

People briefed on the matter told DealBook on Friday that the process was meant to be no different than that of a standard I.P.O. And certainly in normal circumstances, a hot stock offering often means that investors big and small get fewer shares than they would like.

But that’s likely little comfort to individual investors who had been led to believe they could participate in an I.P.O. that promises a huge first-day bounce.

http://dealbook.nytimes.com/2010/11/12/retail-investors-face-tough-entry-into-g-m-s-i-p-o/

[marayatano]

GM: IPO shares to be priced between $26 and $29

On Wednesday November 3, 2010, 4:03 pm

DETROIT (AP) -- General Motors Co. says the company's shares will be priced between $26 and $29 each in an initial public offering.

GM announced the price range in a filing with the Securities and Exchange Commission on Wednesday. GM also says it has split its shares three-for-one in advance of the IPO, which is expected later this month.

The price range and split were revealed in a series of GM announcements that included a third-quarter earnings forecast of $1.9 billion to $2.1 billion.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

DETROIT (AP) -- General Motors Co. says it expects net income of $1.9 billion to $2.1 billion when it announces third-quarter results next week.

The earnings forecast was announced ahead of an expected filing with federal regulators giving details of the company's initial public stock offering.

For the first nine months of the year GM expects net income of $4 billion to $4.2 billion.

The Detroit automaker also says it expects revenue of around $34 billion.

GM's stakeholders, including the U.S. government, are expected to sell the stock around Nov. 18.

http://finance.yahoo.com/news/GM-IPO-shares-to-be-priced-apf-2365457110.html?x=0&sec=topStories&pos=4&asset=&ccode=

[marayatano]

GM Could Be Free of Taxes for Years

By RANDALL SMITH and SHARON TERLEP

General Motors Co. will drive away from its U.S.-government-financed restructuring with a final gift in its trunk: a tax break that could be worth as much as $45 billion.
From Icon to Bankruptcy


GM, which plans to begin promoting its relisting on the stock exchange to investors this week, wiped out billions of dollars in debt, laid off thousands of employees and jettisoned money-losing brands during its U.S.-funded reorganization last year.

Now it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won't have to pay $45.4 billion in taxes on future profits.

The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM's case, the losses stem from years prior to when GM entered bankruptcy.

Usually, companies that undergo a significant change in ownership risk having major restrictions put on their tax benefits. The U.S. bailout of GM, in which the Treasury took a 61% stake in the company, ordinarily would have resulted in GM having such limits put on its tax benefits, according to tax experts.

But the federal government, in a little-noticed ruling last year, decided that companies that received U.S. bailout money under the Troubled Asset Relief Program won't fall under that rule.

Neal Boudette discusses GM's IPO plans, which will raise up to $10 billion and cut the government's stake to below 50%.

"The Internal Revenue Service has decided that the government's involvement with these companies, both its acquisitions plus its disposals of their stock, means they should be exempt" from the rule, said Robert Willens, a New York tax consultant who advises investment banks and hedge funds.

The government's rationale, said people familiar with the situation, is that the profit-shielding tax credit makes the bailed-out companies more attractive to investors, and that the value of the benefit is greater than the lost tax payments, especially since the tax payments would not exist if the companies fail.

GM declined to comment.

The $45.4 billion in future tax savings consist of $18.9 billion in carry-forwards based on past losses, according to GM's pre-IPO public disclosure. The other tax savings are related to costs such as pensions and other post-retirement benefits, and property, plants and equipment.

GM may avoid paying up to $45 billion in taxes for up to 20 years, according to people familiar with the situation.

The losses were incurred by "Old GM," the company that remained in bankruptcy after the current "New GM" resulted from the reorganization last June.


Investors typically view tax-loss carry-forwards losses as important assets in bolstering a company's balance sheet.

GM's chief domestic rival, Ford Motor Co., last year adopted a plan to preserve deferred "tax assets" which stood at $17 billion at the end of 2009. Ford can use the tax attributes in certain circumstances to reduce its federal tax liability. Ford declined to comment on the GM tax ruling.

Write to Randall Smith at [e-mail] and Sharon Terlep at [e-mail]

http://online.wsj.com/article/SB10001424052748704462704575590642149103202.html

[h_man_investor]

so they are selling more of the company than expected- bonds traded down today to around $31-32. Expected recovery is now lower than initially thought- maybe high $30s when GM stock comes out of the gate. Puts CCYPQ at a current value around ~$8.

[marayatano]

Yup, just barley out of the money. I am sure Rosen will try and buy prefferds vote through another revision of the POR, worse case scenario.

And, yes, there will be trade opps.

We shall see.

imo

[Superfly15]

I think I know what the preferreds are going to get, and thats a nice trading opportunity (s) between now and when the fat lady sings. I find it almost comical how the preferreds are "just barely" out of the money as well. Seems to me the examiner is leaving room for leeway for SS if he can prove an adequate case for equity.

C'est la vie, friends were made, immense knowledge was gained, and even a little money was made if the cards were played right. Just depends how THJMW wants to end this case now.

[marayatano]

Not sure what you mean about $100 dumped to $20.

RS is usually pinkie stocks. The new GM is targeting hedge funds, mutual fund, institutional funds (long term holders) and the retail investor. So, imo, no RS. GM is a house hold name and the pro "Americans" will buy and support the pro American companies, imo.

The direct GM senior/general creditors will get their shares/warrants sooner than CCYPQ because they are a direct holder of the security. Here, you are an indirect holder with a Trustee involved, so you would get distribution later.

As for Wamu, I wont tell you what to do, but I feel that preffereds will get something at the very least.

imo

[jcpny777]

maray thanks for the quick reply. will this time frame be for all of the other old gm preferred as well. it seems the pps has dumped from over $100 to this low to mid $20 range. wasn't there talk of a rs after the ipo.
as for wamu i was pre, averaged down and picked up a few h,k and p's and will stay strong till the fat lady sings (hopefully sb as she pays us)

[marayatano]

Hello, jcpny777. Even if the IPO is in Nov/Dec, we would be able to obtain our portion of the shares until early next year (sometime in January 2011 comes to minds if I remember correctly).

I recall reading an article that the OLD GM has to distribute our shares and warrants.

As for Wamu, I would not worry too much. I expect EC to put out a competing POR/DS with Solomans' prelim numbers.

If you are in preferreds, according to Examiner, you are only $500 M away from being in the money. Take the $350 ish Mil from WMB bond holders, then you are only $150 away from being in the money. Rosen wil probably need to buy preferrds vote, worst case scenario.


imo

[jcpny777]

good evening maray any thoughts on when we end up with our shares and where we will end up with them. after tonight's slaughter on wamu I could use some good news

[marayatano]

Sources: GM nears terms for initial public offer
Sources: GM nears terms for initial public offering; shares could sell between $26 to $29 each

Tom Krisher and Sharon Silke Carty, AP Auto Writers, On Monday November 1, 2010, 6:08 pm EDT

DETROIT (AP) -- General Motors Co. stock should sell between $26 and $29 per share in an initial public offering that could happen in mid-November, two people briefed on the matter said Monday.

The people said the U.S. government is expected to reduce its stake in the automaker from 61 percent to around 43 percent in the sale.

Terms of the sale are not final because GM's board has yet to approve them, although it has accepted the general outline, another person said.

Bankers leading the sale are recommending that the final share price be revealed Nov. 17 and the sale take place on Nov. 18, according to the people.

A price range could be formally announced in a regulatory filing within the next 48 hours, two of the people said.

None of the people wanted to be identified because they had not been authorized to speak on the matter.

A "road show" to woo investors to buy shares of the company could begin as early as Wednesday. It generally will be aimed at hedge, pension and mutual funds, but presentations are expected for individual investors.

The historic sale would return GM to the New York Stock Exchange, where it was a symbol of American industrial might for more than 92 years before being booted off last year as financial troubles sent it into a government-funded bankruptcy.

GM is now a private company that's owned by the U.S. government, a United Auto Workers health care trust, the Canadian and Ontario governments and former GM bondholders.

The four owners hold about 500 million shares total, and the U.S. government's stake is about 304 million.

To bring the share price down, more shares will be issued, a move called a split that likely would give the owners three or four shares for every one they currently hold.

U.S. taxpayers became GM's biggest shareholder when they gave the automaker $50 billion to survive bankruptcy restructuring and emerge as a smaller company with far less debt.


http://finance.yahoo.com/news/Sources-GM-nears-terms-for-apf-2397874185.html?x=0&sec=topStories&pos=1&asset=&ccode=

[marayatano]

GM expected to file terms of IPO Tuesday
Automaker expects to sell 365 million common shares priced between $26 and $29

BREAKING NEWS

General Motors is expected to file the terms of its initial public offering of shares on Tuesday, according to news reports.

The U.S. automaker, which is now majority owned by the federal government, is expected to sell 365 million common shares for $26 to $29 each, according to sources. GM is also expected to sell $3 billion worth of preferred shares, the sources said.

The IPO is expected to reduce the U.S. Treasury's stake to 43.3 percent from the 60.8 percent it currently has, not including the overallotment option, one of the sources said. The governments of Canada and Ontario are expected to sell down their stake to 9.6 percent from 11.7 percent and the UAW VEBA trust is expected to sell down its stake to 15 percent from 17.5 percent, that source said.


GM is expected to begin its IPO roadshow on Wednesday. It is expected to price its IPO on Nov. 17 and begin trading on the New York and Toronto stock exchanges on Nov. 18, the sources said.
Story: In GM IPO, government is a back-seat driver

GM is likely to sell a combined $1.5 billion to $2 billion stake to four or five sovereign wealth funds, one source said.

The Associated Press and Reuters contributed to this report.

http://www.msnbc.msn.com/id/39954478/ns/business-autos/

[Enterprising Investor]

Weighing New GM's Resale Value

By SHARON TERLEP

DETROIT—General Motors Co. has made progress tidying up its balance sheet ahead of a planned initial public stock offering next month, but there's still a big question it has to answer for potential investors: Is GM fixed?

The auto maker said Thursday that it will return another $2.1 billion of the nearly $50 billion in bailout funds it got from U.S. taxpayers. The repayment was one of a series of moves GM, which is majority owned by the federal government, announced to reduce its liabilities and show financial strength ahead of the IPO.

GM said it will repay the money by buying back 83.9 million preferred shares owned by the U.S. Treasury. In a separate move, it said it will immediately pay $2.8 billion to reduce the amount it owes to a trust fund that covers the cost of health care for retired workers.

After the IPO, the auto maker plans to cut its liabilities further by contributing $4 billion in cash and $2 billion in stock to employee pension funds.

From Icon to Bankruptcy

All told, the moves will use $10.9 billion, but will save about $500 million a year in interest payments. GM will be left with $24 billion in liquidity, including a backup $5 billion revolving credit line, which company executives believe is enough to keep it moving forward, especially now that it is making money again.

The stock buyback from the Treasury is significant because the Obama administration is seeking to recoup the entire $49.5 billion that taxpayers poured into GM, starting in the final days of the George W. Bush administration. With Thursday's deal, GM will have returned about $9.5 billion of that money, through loan repayments, interest charges and dividends, the Treasury said.

During a stay in bankruptcy court last year, GM slashed its debt and costs, halved the number of brands it sells and swept out its entrenched leadership in favor of aggressive newcomers.

Bolstered by a new, lower-cost union contract, some strong-selling models and an improving economy, GM reported a $2.2 billion profit for this year's first half, a sharp turnaround after losing nearly $90 billion between 2005 and its bankruptcy filing in June 2009. GM's U.S. sales rose 6.8% in the first nine months of 2010.

But, as for whether GM is fixed, the answer is yes—but not completely. Many problems linger.

GM's U.S. market share slipped 2.8 percentage points this year through September as overall car sales recovered. One reason is the company still doesn't make enough models that appeal to a broad spectrum of Americans, particularly young, urban drivers and those on both coasts.

GM faces intense competition from a resurgent Ford Motor Co. and newer rivals such as Korea's Hyundai Motor Co., as well as Toyota Motor Corp., which remains a formidable competitor despite its safety recalls. In Europe, GM has racked up years of losses at its Adam Opel GmbH unit.

While bankruptcy did GM much good, it also left the company with a gap in its product pipeline because development of some models was frozen for months as the company slid toward Chapter 11.

GM also has an image problem. Its bailout came as anti-government sentiment was rising, and many consumers and lawmakers see GM as "Government Motors" because of the Treasury's 61% stake in the company.

Here's a look at what GM has fixed—and what remains to be done.
What's Fixed

Bankruptcy finally enabled GM to shrink its North American operations to fit a smaller and more competitive market. It abandoned 14 of its 47 North American plants, shut down its slow-selling Hummer, Pontiac and Saturn brands, and sold Saab, allowing it to put more resources into Chevrolet, Cadillac, Buick and GMC.

Perhaps the biggest achievement of GM's 41-day stay in bankruptcy court is its new balance sheet. After the measures outlined on Thursday, GM has just $8.2 billion in debt, down from $45.9 billion before it filed for court protection. GM also has $24 billion in cash, $4 billion more than at the end of 2009.

A big part of the debt reduction came from a deal with the United Auto Workers. GM was obligated to pay billions of dollars into a trust fund to cover health care for retired union workers. Instead of paying in cash, GM won union approval to put stock into the trust, which is now GM's second-largest shareholder, with a 17.5% stake.
GM Icons and Flops

The cost reductions are boosting the bottom line. In the second quarter, GM made $2,009 on every vehicle it produced in North America. In the three months before it went into Chapter 11, GM lost $4,081 on every car or truck it made in the region.

That the company can make money with U.S. car sales at around 10.5 million a year—compared with 16 million annually earlier this decade—means it should profit handsomely when sales recover further.

For years, GM hurt itself by running too many plants and making more cars than consumers cared to buy. But after closing so many plants, GM has gotten supply in line with demand, and its plants are more productive. In the second quarter, GM's North American factories operated at 93% of capacity, up from 40% a year earlier.

Now some new models are selling at higher prices. The recently redesigned Buick LaCrosse sedan typically sells for $30,000 to $40,000, according to dealers—about $7,000 more than the old version.

In China, GM's joint ventures are booming and it is now the top-selling foreign brand, having overtaken Volkswagen AG. This year, for the first time, GM is selling more vehicles in China than in the U.S.

GM's progress has come under a new board and management team. In the past, GM tended to deliberate endlessly over even minor decisions, delaying tough action.

During GM's bankruptcy, the Treasury stocked the GM board with industry outsiders. Edward E. Whitacre Jr., a no-nonsense Texan who spent most of his career building SBC Communications Inc. into a telecommunications giant, was named chairman. Another telecom deal maker, Daniel F. Akerson, also joined the board.

In December 2009, Mr. Whitacre wanted faster change and took the chief executive post himself, ousting GM veteran Frederick "Fritz" Henderson. The chairman shook up other management as well.
What Needs Work

Though GM is making money and has a clean balance sheet, one of its trouble spots is pensions for its retired workers. The company has more than $27 billion in outstanding pension obligations. Of that, payments totaling $10 billion are due in 2014 and 2015. Making such payments could hamper GM's ability to develop new models and modernize operations.

In Europe, GM's is closing an Opel plant in Belgium as part of a turnaround plan, but also needs to raise market share—a difficult feat in the competitive European market. In private, GM's advisers and some board members acknowledge getting Opel to break even may be the best the company can do.

Questions still hover over GM's executive suite. Mr. Akerson, now CEO, has been at the helm fewer than 60 days, and has little experience running a large manufacturing company.

Speaking to reporters in September, he conceded that the company has a long way to go. "The GM we know today will not be the GM we see five to 10 years from now," he said.

While GM's U.S. sales rose 6.8% in the first nine months of the year, its increase has been fueled by higher sales to rental-car companies and other "fleet" customers. Sales to individual buyers—which generally are more profitable and a truer measure of a car maker's ability to win customers—were down about 2%, according to people familiar with the matter.

In an effort to spark enthusiasm for the Chevrolet brand–which now accounts for more than two-thirds of its sales–GM this week announced plans to blanket the airwaves with a new, Americana-themed ad campaign.

Changing consumer perceptions is easier if an auto maker launches new, head-turning models. GM has that in the form of the Chevrolet Volt, the battery-powered car due in December, and some new small cars, including compacts for Buick and Cadillac.

Beyond that, GM has some holes in its lineup. Bankruptcy forced it o freeze development of several vehicle lines, including a new generation of full-size pickups and sport-utility vehicles. That means GM won't be able to wow potential investors by pointing to a string of high-profit models waiting in the wings. GM won't have new trucks to offer until at least 2013, though it could update current models.

Privately, GM executives acknowledge weakness in the company's product line that could hurt its competitiveness over the next few years.

GM has committed almost $1 billion to revamp its big trucks and SUVs and tripled the size of its truck-design studio to be able to develop SUVs alongside pickups, rather than separately. "We are moving as fast as we can," said GM's design chief, Ed Welburn, in an interview. "But you can only speed things up so much."

Write to Sharon Terlep at [e-mail]

http://online.wsj.com/article_email/SB10001424052702304316404575580713213815440-lMyQjAxMTAwMDIwOTEyNDkyWj.html

[marayatano]

Going Long GM, Before It Goes Public
Oct. 14 2010 - 5:52 pm
By STEVE SCHAEFER

General Motors wants to price its IPO low enough so that everyday investors can get access. That’s just dandy, but Michael Kao is already having a field day with the automaker’s convertible bonds.

At the Value Investing Congress Wednesday, the founder of Akanthos Capital Management detailed a trade pairing GM convertibles with a short position in Ford. His reasoning: the GM bonds – convertibles are a debt/equity hybrid – have as much as a 50% upside from their recent level of 32 cents on the dollar. (He bought them at 5 cents on the dollar). Moreover, although Kao had praise for Ford CEO Alan Mulally for avoiding bankruptcy he questions whether the company should be afforded a winner’s premium, or a winner’s curse.

“I’m not bearish Ford,” Kao said at the conference, but he points out that by avoiding bankruptcy the company was more restricted by GM when it came to stripping out costs. GM slashed its dealer network by 30% — Ford was only able to prune 10% — and managed to reverse its cash position from around $30 billion in net debt to $12 billion in net cash thanks to the largesse of government bailouts.

On a valuation basis, Kao says GM’s enterprise value is almost $20 billion less than Ford’s, despite having $30 billion more in revenue and a strong China business that is growing at a 25% annual clip.

GM’s creditors are in better shape than those of its fellow Detroit orphan Chrysler. In the case of Chrysler, Kao explains, many of the senior secured creditors were TARP recipients and hedge funds, not exactly the most endearing constituency, and got manhandled to an extent by the government’s settlement. In the case of GM, the $27 billion creditor base was comprised of far more mom-and-pop, Main Street type investors, and that was reflected in the bankruptcy process.

Motors Liquidation, the carcass of “Old GM,” owns 23.85% of New GM pre-IPO, including in-the-money warrants.

With its IPO expected in November, GM is also on its fourth CEO in little over 18 months, but if that’s what it took to reverse a “horribly inbred management culture,” Kao is all for it. He admitted to wishing Ed Whitacre had stuck around longer as CEO — chairman until year’s end, Whitacre has predicted the IPO will price at around $25-$30 per share — but had praise for new chief Dan Akerson. “He understands capital structure, and getting [CFO Chris] Liddell from Microsoft was good.”

To Kao, the story at GM has a Depression-era parallel in railroad bonds. Cy Lewis made his name, and in many ways Bear Stearns’, by pouring money into railroad debt during World War II when FDR commandeered the railways to ensure delivery of necessary war materials. Lewis scooped up railroad bonds for pennies on the dollar as fears over nationalization depressed prices, and reaped the reward when the market turned. That fear of nationalization happened again in 2008, Kao says, creating the present opportunity in GM.

Follow my blog Exile On Wall Street, or Twitter @SchaeferStreet.

http://blogs.forbes.com/steveschaefer/2010/10/14/going-long-gm-before-it-goes-public/?partner=yahootix

[jcpny777]

thanks but how does this relate to the new gm shares. i believe it was a ratio of new shares / $1000. worth of old bonds. so for each 40 shares of ccypq or any of the others we should get how many new gm shares

[Superfly15]

31.82 close for the underlying bond today, means 31.82c on the dollar for us returns (approx)

Around 8$ a share based on that is what we get for the CCYPQ's, I dont have the exact number though offhand E.I. may be able to tell you.

[jcpny777]

GM chairman predicts $20 to $25 share price in IPO

i sure liked the govt idea of $131 per share better.. how does this affect / effect us. will we get the 5 to 1 ratio or are we stuck holding the bag open for what ever scraps are doled out into it.
tia

[Superfly15]

Looks like the bonds have settled in around 31.50, so about 7.88 give or take 50 cents is fair value for these if my math is right.

[GlobuleFou]

Spread is high is probably caused by very low volume. 200 max per day.

[Enterprising Investor]

The spread is about 21 percent.

[Superfly15]

Anyone around here anymore? Its slowly creeping back towards 5 again (6.00 now)...you guys looking to add for the IPO?

[Enterprising Investor]

GM to file mid-August IPO: sources

(Reuters) - General Motors Co GM.UL plans to file its nearly $20 billion initial public offering in mid-August, a source familiar with the situation said Friday, later than some expected as bankers work to help sort out the automaker's finances post-bankruptcy.

General Motors is also in talks with banks for a revolving credit line worth $5 billion, sources said. Bank of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) have already agreed to provide $500 million of credit each, with other banks still to be chosen, a source said.

The credit line is expected to be finalized in the next two weeks, about a month before the automaker files for its IPO, a source said. Earlier media reports said the IPO filing was expected in early July.

GM spokeswoman Noreen Pratscher declined to comment.

GM, which declared bankruptcy last year, has emerged from Chapter 11 protection, and an IPO is a key step for the automaker to wean itself from government support.

GM is more likely to cut the valuation on the IPO than delay it and is looking for a broad investor base, said one source, who requested anonymity because the talks are confidential.

The U.S. Treasury, which owns nearly 61 percent of the automaker's common shares after a $50 billion bailout, plans to sell 20 percent to 24 percent of its stake -- $10 billion to $12 billion worth of shares, sources said. The sources cautioned the details of the deal are not yet finalized and could change.

A Treasury official said it is too early to say how much it would sell.

"The pricing and ultimate size of Treasury's stake are decisions for later in the year," the Department official said.

GM is not expected to itself sell shares immediately, but plans to sell about $3 billion in mandatory convertible securities that convert into shares in the future, a source said.

GM is not expecting to pay dividends to shareholders in the near term, so the company hopes mandatory convertibles, which offer regular interest or dividend payments to investors before turning into stock, could attract dividend and growth fund investors, the source said.

The governments of Canada and Ontario, which own 11.7 percent of the company, are planning to sell 20 percent of their stake, a source said.

The United Auto Workers healthcare trust holds 17.5 percent of the company and the old GM, now known as Motors Liquidation, holds 10 percent. It is unclear if it will sell shares in the IPO, two sources said.

A successful IPO would be an important political win for the Obama administration, which engineered bailouts for both GM and its smaller rival Chrysler in 2009 in the face of Republican criticism and public opposition.

A $15 billion to $20 billion IPO by GM would be the largest U.S. IPO since Visa Inc's (V.N) offering of $19.7 billion in March 2008, according to Thomson Reuters data, and one of the biggest U.S. offerings of all time.

Investors say that, while such a large offering will attract attention, they want proof that "Government Motors" has truly turned itself around.

The carmaker was down to its final dollars before last year's government bailout and bankruptcy financing. It reported $14.2 billion of debt at the end of March and had a $27 billion pension funding shortfall at the end of the first quarter.

A source said proceeds from the IPO are expected to be used to repay debt and help fund GM's pension liability.

A $5 billion line of new credit would provide GM with an additional liquidity cushion in the event of a possible double-dip recession and also bankroll GM's expansion in global markets, including China, a source told Reuters.

The full underwriting syndicate has not been decided but JPMorgan and Morgan Stanley (MS.N) are the lead underwriters on the deal. Lazard Ltd (LAZ.N) and Boston Consulting Group are advising the U.S. Treasury on the GM IPO.

(Reporting by Clare Baldwin in New York, Philipp Halstrick in Frankfurt and Soyoung Kim in Detroit; additional reporting by Mark Felsenthal and John Crawley in Washington; editing by Gary Hill and Andre Grenon)

http://www.reuters.com/article/idUSTRE6604YV20100702

[Enterprising Investor]

CCYPQ will never pay a dividend.

This security will be liquidated once the New GM equity and warrants are distributed.

[jcpny777]

any chance we see the june dividend paid this year
tia

[marayatano]

Thanks Re: PM. I can't understand those people. LOL eom

[Enterprising Investor]

Not at all.

I was just answering a question from h_man_investor without paying attention to which board it came from.

Event drivers for CCPCN would direction detailed in the LEHMQ reorg plan and an OTS decision.

CCYPQ will see limited movement going forward unless GM products start selling like iPhones.

[h_man_investor]

Dividends "should" be reinstated anytime. There was a cease as desist against the parent paying any dividends by the OTS last year until their capital levels were improved. Currently Aurora Bank (the parent) is considered "well capitalized" with the Lehman capital injection in December. The next dividend record date is around the middle of April so I am hopeful it will be reinstated by then.

[jcpny777]

ei does adfitech relate to ccypq someway????
on the ccpcn do you see them reinstating dividends anytime soon or will the price finally break out and run??
tia

[Enterprising Investor]

Adfitech plan should be effective on 3/15.

Per the Disclosure Statement: "On the close of business on the Confirmation Date (which was 3/02), the transfer ledgers for the Senior Notes Guarantee Claims shall be closed, and there shall be no further changes in the record holders of any Senior Notes Guarantee Claims with respect to distributions under this Plan. Adfitech and the Senior Notes Indenture Trustee shall have no obligation to recognize any transfer of the Senior Notes Guarantee Claims occurring after the Confirmation Date. With respect to distributions under this Plan, Adfitech and the Senior Notes Indenture Trustee shall be entitled instead to recognize and deal for all purposes hereunder with only those record holders stated on the transfer ledgers of the Senior Notes Indenture Trustee as of the close of business on the Confirmation Date."

Bonds have been active despite the information above.

Issue: TMA.GB Description: THORNBURG MORTGAGE INC Coupon Rate: 8.000 Maturity Date: 05/15/2013

Execution
Date Time Status Quantity Price Yield Comm. Modifier 2nd Modifier Special As Of Reporting Party Side
03/12/2010 16:28:41 T 10000 10.000 0.000 N @ B
03/12/2010 14:16:20 T 125000 11.950 0.000 N @ S
03/12/2010 14:15:37 T 125000 11.950 0.000 N @ S
03/12/2010 14:14:41 T 125000 11.625 0.000 N @ B
03/11/2010 16:49:13 T 1MM+ 13.000 0.000 N @ S
03/11/2010 14:13:08 T 125000 11.625 0.000 N @ A S
03/11/2010 13:48:28 T 250000 11.375 0.000 N @ D
03/11/2010 13:47:51 T 250000 11.625 0.000 N @ D
03/09/2010 16:58:10 T 10000 12.500 0.000 N @ D
03/09/2010 16:58:10 T 10000 12.609 0.000 Y @ S
03/09/2010 11:37:02 T 1MM+ 12.500 0.000 N @ B
03/08/2010 17:07:00 T 25000 10.300 0.000 N @ B
03/08/2010 17:07:00 T 25000 10.500 0.000 N @ D
03/08/2010 15:07:26 T 1MM+ 13.250 0.000 N @ D
03/08/2010 15:06:51 T 1MM+ 13.000 0.000 N @ B
03/03/2010 10:01:00 T 20000 11.170 0.000 N @ B
03/03/2010 10:01:00 T 20000 11.500 0.000 N @ D

[h_man_investor]

anything left in the TMA.GB? I havent been following the developments st Thornburg.

[Enterprising Investor]

I am one happy TMA.GB holder!

THMRQ and preferred stock will eventually be wiped out.

MPG-A was a good call.

CCPCN may be boring to some, but will be profitable to all.

[insomniac]

Enterprise... Are you still thumbs down on Thornburg..
H-man Nice call on MPG.. Did you have the common or the preferred.??> Are we waiting until may to see the outcome on CCPCN?? Im getting bored with that puppy.

[Enterprising Investor]

My initial purchases sat out there for days.

I initially placed a $7.30 limit. CCYPQ woke up at 10:00 ET, and I noticed a great deal of interest at $7.00. Volume has really picked up recently. There was little action when I started following it.

I am sure some money was left on the table, excluding time value of money. It may eventually hit $10 (40 percent of par), but we have no idea when the IPO process will begin. Thanks, Barrons! It will probably fall back to the $5.50 to $6.00 range next week once the news wears off and bond prices deteriorate (I call this my 5-day effect). I would be a buyer again at $5, but it should never go that low again.

Now, do we really want CCPCN to hit Barrons next week? I need to purchase a few more at $10 limit!

[h_man_investor]

I can't figure out the grey market- i had a limit orders in yesterday and today below the highs of the day and did not get executed.

Enterprising, how do we get CCPCN on the cover of this weekend's Barrons???

[marayatano]

See Enterprsie's reply.

Also, to note, the potential lies in the warrants (assume it hits the strike price).

[Enterprising Investor]

Sold the remaining 440 today at $7.00.

The 1,500 produced over $7,000 in profit in about 8 months.

The funds will be invested in CCPCN, which should outperform CCYPQ going forward.