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Did IVAN release those test results yet I do not see them anywhere it jumps from that last NR of testing due out end of FEB and then to financial. TA
Means diddly squat. Motortrend car of the year I think was pretty much rigged Volt wasn't really even marketed to public yet to deserve such a title. That is why the Volt is going to fail GM never learns anything from their mistakes thinking that they can just leap instead of hop first even after the bailout. They didn't think of the design either the Leaf from Nissan is better designed. Volt is the elephant in the room for sure that I agree we shall see who whoops GM in the end I wouldn't be surprised to see Chysler whack GM too since they so are the underdog. GM they way they are going aren't even close to doing anything right until they can prove their worth again. I highly doubt many retail investors would be interested in the Volt at all when they can get a hybrid instead if you look at what savings they are saving from oil/electric to plugging in the car for electricity bill and the cost of that charger regardless of grants. I can safely say we shall see some sort of article comparing the hybrid and full electric on cost savings soon enough. Did anyone see GM new commercial my goodness what a sappy commercial gee they thanked PPl for helping them out and without the PPL they would be gone. Yeah well where is the PPl's bailout when they are down and out.JMHO
The volt would be a joke in Canada. They are planning to start selling it in Canada in second half of 2011. With Canada's cold weather there is no way in hell that volt is even going to cope shows you how dumb GM is to market such a car in Canada. Even the hippies in Vancouver cannot afford the ticket price on top of the HST tax here and BC is about the only province that volt can survive here even then it does only 60mpg that doesn't even get you to the store and back on the heavy traffic in the largest provinces of Canada that would be Toronto, Vancouver and Calgary no way the volt will sell in Canada it would be a very poor showing that is for sure in Canada. Volt will not be able to beat the Nissan Leaf and GM has to see that and lower their price tag on that volt cost or not. Yes there is a race between hybrids and electric however the hybrid is well liked as it runs on both I do not think the electric will make much of a splash for a while. JMHO
I know how u feel LOL about penny stocks. I only buy penny stocks in Canada not OTCB Canadian penny stocks better not highly manipulated like the OTCB. I did get into Ford last year at 7 and averaged up to about 9. Made a good chunk of change. GM is going to end up asking for more bailout money if they aren't careful and yes they never learn. Investors shouldn't worry so when Ford goes up and down like this it pretty much the same pattern I have watched for the past year. GM will flop with that volt no doubt. Chysler might be worth it to actually get into their IPO over GM LOL I know sounds ridiculous but it might not be so. JMHO
GM is gonna fall. Their volt is not going to compete with Nissan's Leaf the comparison between the two electrics is astounding. Nissan's goes 160 per and Volt only 60 per and the price difference is huge. Nissan cheaper on a better battery and volt at a ridiculous price. There was a comparison on volt and leaf yesterday on the news last night. GM selling the volts at cost right now and only making about 10000 at selected markets. Nissan is going world wide with their Leaf. GM is in trouble would not be surprised by options trading that GM will fall actually below in the 28.00 section below that IPO. I do not doubt their earnings coming up well not be spectacular as the Eurozone division is losing money. Ford will profit as usual and probably will bring out something to compete with GM and Nissan's volt and leaf. Toyota is losing market shares and their sales of slumped big time. Best time for Ford to actually strike a hot iron with something really good. Ford will go higher than 17.70 and of course have it's ups and downs but I am pretty sure Ford will be in low 20's sometime next year. JMHO
Shorts in Ford. GM just started options trading yesterday shorts will move over and Ford will be fine happens like this every month to trade with Ford. I wouldn't worry Ford was named one of the top auto makers to be have in 2011 GM not even on the list please go to BNN.ca I think it is on clip Market Morning they list the top auto stocks that investors should hold in 2011. Ford trades like this every month then goes up to next level. Ford will go up tomorrow China PMI just released and worries for China is out the door. It's really the Eurozone everyone is worried about the most and honestly it is bunch of garbage because at this stage investors would have to ignore what the Eurozone is going to do because all they can do is bailout the PIIGS whether they like it or not. US manufacturing data is out tomorrow. The big jobless claims and farm rolls if they are decent number you will be seeing the shorts running on a short squeeze on Ford. JMHO
http://www.bloomberg.com/news/print/2010-12-01/china-s-manufacturing-expands-faster-than-forecast-as-pmi-advances-to-55-2.html
http://www.businessweek.com/news/2010-11-30/treasuries-snap-gain-on-speculation-u-s-manufacturing-expanded.html
I never listen to Motely Fool worst PPL to talk about Ford. They have bashed Ford back and forth for last two years. They will not give Ford barely any credit for what they do or when credit is due. Ford was up 20% is sales still beating GM. Since Ford has marched into China their sales will now compete with GM now GM doesn't have all market share in China. Ford on upper advantage is in India also and GM is not yet fully there. GM market share will slide in Eurozone as well as some of Ford in Eurozone but Ford not that much in Eurozone. Ford was smarter to corner Brazil, Mexico and other bigger areas. GM still has to play catch up for market shares against the other auto makers. For GM to bear any fruit after post bankruptcy will be a joke Ford already ahead of them in the North American market especially Canada. I can bet my bottom dollar next round on GM earnings will post a lost over Ford posting another profit and in next round of auto sales Ford will also beat the pants off GM. It took GM 2 years to even show even decent numbers against Ford and GM still lagging. Analyst have no idea like any other average joe investor where numbers would be it's like saying roulette wheel bet black or red either way you have a 50/50 shot. JMHO
Not unusual with Ford always like this when F has a good run and someone always betting against F. Ford so highly traded that it's normal every month for Ford there is always high short interest on Ford. Give a few days they will squeeze those shorts and then Ford runs forward again on a uptrend 3-4 days in a row.
F got ripped off considering sales were up 20%. Shorts will be on the run soon. Markets did a turn and started buying again. Eurozone talk and Chinese talk not scaring anyone by looking at the markets pretty flat. JMHO
:) NICE choice Chev. Sooner than u think. Now isn't it funny Eurozone gives great news on Ireland and Greece and investors jumping off a cliff. Silly rabbits. Bull market in 2011 history dictates it. Eurozone not finished yet still have to shove more bailout on Spain and Portugal and these two countries have no choice but to take it being part of the Eurozone. I see they mentioned China today. Amazing how investors listen to the rhetoric of the market. JMHO
Hello just got in today on IAU. I noticed the IPO offering my RBC online investment sent me and didn't get a chance to get onto it as it closed out almost same day that it was offered so tells me it is a good stock since it is Australia mining company makes it even better the Aussies seems to be doing a lot of M/A activity maybe IAU can get taken out with the assets they have. Well hope to add on the dips looks like a good stock to me and the volume seems to be picking up also. JMHO
Thanksgiving to you too Trueheart and good shopping for Black Friday.:) Will be slow day anyway on TSX because of US holiday not sure Black Friday will be any higher volume either probably sideways trading since no US data really. Next week back into full swing hopefully investors are rested and blow the December away for a good ending to the year.
Sheer manipulation. Whatever you do stick to your guns when it comes to price and getting entry in the end they use the numbers against you and never sell you will always get your asking price. They barely even bothered to mention any of it except Eurozone taking the bailout and I think they mentioned slight yesterday's news on Korea. US data dominated today. Lazy traders they were on auto trading for the US Thanksgiving Day. That's why I don't panic you will see next week they will cream the shorts when full swing trading comes back on Monday. JMHO
Pretty much A/H currencies commodities doing okay oil up, copper up, silver up, gold slightly down not by much Ford up after hours Asian/ India Australia markets slightly mixed I am assuming some are trading on technical. North Korea maybe crazy but US is aligned with South Korea military. China since handed reins in IMF right next to US has to take responsibility with US. China used to be aligned with North Korea but severed ties because they were moving in a different direction since being communism that has changed in China and has ties bi-lateral trades with South Korea. North Korea has tested their weapons months ago and if they wanted to wipe out South Korea they would have by now, as they have been trying for decades, this is just sheer craziness from North Korea to see if they rile South Korea into attacking. Ireland took the 90 billion bailout and pretty much put their banks up for sale. Eurozone was the same BS months ago with the same result. Couple months later yes I agree with you will hear the same BS from Eurozone again. Ford really just got hit with the rest of the market that is all nothing to do with Ford fundamentals. F so highly traded that that yes it would have been hit harder than most stocks. PPL heard scare they jumped looking at the rest of the markets commodities and resources still fared nicely did not get hit as normal like they would on such news. It will blow over as yesterday's news until something actually happens. JMHO
You never predict the bottom because markets are unpredictable. Leave emotions out of it nervous, frustration, panic etc etc. It would help you to understand Ford by visiting their website and if you trade online set alerts for Ford and up to date news about Ford and where they are heading for the future would ease your mind about Ford and their growth and fundamentals. Ford like I said is the least of your worries. Markets drop markets jump sometimes for no reason so predicting any bottom is difficult just like knowing when to buy or when to sell. As long as you know about the company and did your DD on the company nothing to worry about because the economy even with all this noise on the market will recover eventually some sectors more than others auto industry is one of them since they have been picking up steam from the emerging markets and clean energy side and the stats on retail and auto industry sales seems to continue to stay steady or they move higher. JMHO
Investors don't bother to think WAR means money on the stocks. Hypothetically if North and South go to war markets go up. PPL forget their history. Vietnam war, Japan war, Kuwait etc etc. Stocks go up why because of the needs of materials and those materials made from metals and resources that are needed to support a war. This war is interesting because of the ties with China and South Korea. Now China in turn will start hoarding materials and resources because if this rages on getting the goods could prove difficult for China. BUY, BUY, BUY. One leads to the other. US and China will not let this get out of hand not a lot of investors put shall we say much talk into North Korea minor upset that is about it. It would only upset the markets and the free trade agreement recently between South Asian Pacific countries. I highly doubt this Korean spit is nothing more than a correction pullback on the market. JMHO
No doubt about that Ford will be back past 17 and then move forward again. If you watch Ford in the last two years no need to ask that question on Ford since the downturn of 2008 Ford jumped from 1.00 to where it is now. Ford's future is quite bright. You will be fine making money off Ford for long term or short term. Today was just noise and Ford will be right as rain again. This is normal for Ford trading just sit it back in your portfolio and forget it is there because Ford is probably the least stock you should worry for. Well one look at GM you were lucky to get out of it GM nearly dropped back to IPO price and took a massive beating today. You should actually average down on the dips of Ford you won't be sorry. Recouping your investment back is no problem with Ford but why would you do that instead of either averaging down or keep Ford for about 6-12 months you will be in the money with Ford. F today only dropped with the broad market on Korean news and the tail end of Eurozone. If you have noticed the whole market took a beating today not just Ford. I wouldn't worry Ford will be fine. JMHO
Well if North Korea tries to sink South Korea again Ford might dip some more. Crazy North Korean he has already tried this BS already and it faded in one day in the market. I think today was all political BS especially coming from North Korea. Nobody even bothered to look at the decent US data. Bernanke not exactly thrilling on his FED minutes. HMMM everything being hit severely PPL forget if war breaks out on Korea there will be a lot of buying on some stocks. WAR only means money. I don't think PPL were interested in any data today but Korea everything else was nothing. Hopefully Wednesday data will be good. Looking at the hit the market has taken the last few days time for the market bounce back before US Thanksgiving and Black Friday. JMHO
GM Analyst Call Lacks Conviction (GM, F)
Posted: November 22, 2010 at 2:32 pm
Read more: GM Analyst Call Lacks Conviction (GM, F) - 24/7 Wall St. http://247wallst.com/2010/11/22/gm-analyst-call-lacks-conviction-gm-f/#ixzz164lx6rYY
General Motors Corporation (NYSE: GM) may have been touted as one of the top IPOs of American history. It was also one of the biggest bankruptcies and implosions in American history which cost billions and billions of dollars to become a top IPO again. S&P Equity Research has decided that GM shares are close to fully valued for investors.
S&P is looking for a modest premium to peers, but there is a concern that higher materials costs will begin to offset gains in auto industry sales. GM is trading at $34.30 so far on Monday with a 0.1% gain, but the price target is not very enthusiastic. S&P assigned only a $36.00 price target.
It was just last Wednesday that Ford Motor Co. (NYSE: F) saw its shares cut by S&P Equity Research as well. The company was cut to “Hold” from a previous “Buy” based upon its performance and target objectives catching up to the valuations (or vice-versa).
Hold ratings are obviously better than “Sell” and certainly better than “Strong Sell” ratings. In reality a “Hold” is the same as a “Neutral” or “Market Perform” rating.
JON C. OGG
Thought this article would give investors a chuckle it did me. Interesting enough though SP gave Ford a 18 dollar target upping it from 17 a share. I just recently got a report this morning on F from SP. Next report I get probably will have another upped target on Ford. SP lacks alright and it should be on GM shares not Ford. JMHO
New Ford BOSS 302 on speed channel. Nice little mustang. Hubby thinking of getting that instead of a new HOG....LOL.:) Ford will hit in the low 20's I feel in the next few months of the new year. No doubt here for Ford they as usual doing the right things. Investors shouldn't panic because Ford is selling their debt it really benefits Ford when they go to negotiate with UAW and CAW. The less their debt the better off Ford PPS will be and better deals they can get with the unions. Ford at this point investors are in or out for the new year it will just get more interesting when Chysler's IPO comes around the corner I say probably by the spring with Chysler when all 3 auto makers are back in the game the auto industry market will now go full force. JMHO
Ireland playing hardball the green party dropped out and holding new elections in January sometime. Just reflects the investors jittery on what Eurozone has to fork over to save the PIGS. Either way Eurozone will fork over the money whatever the amount is whether they want to call it a stimulus or not which it will be. Car buyers are there maybe not so in Eurozone but the other emerging markets Honda just took out Toyota in sales. Ford making it's way with it's products more into the emerging markets to steal market shares against Honda, Toyota and Nissan no doubt will whoop GM anyway in market shares. US greenback putting pressures on equities with the treasuries. Not concerned the market did not dip as low as anyone though it would even considering Eurozone problems not like it did in April. So judgment wise investors sitting on sidelines for now until they see what Eurozone details are. JMHO
Opel says it heads for loss of 1.4 billion euros this year
Mon Nov 22, 5:00 PM
FRANKFURT (AFP) - Opel, the European unit of US auto group General Motors, expects to report a loss of 1.4 billion euros this year, Opel head Nick Reilly said in a magazine interview on Monday.
Reilly told the weekly publication Wirtschaftwoche that restructuring charges were weighing heavily on the results.
"In total (for 2010) we are looking at a loss of about 2.0 billion dollars or 1.4 billion euros," he said.
Opel has already reported a net loss of 1.2 billion euros in the first nine months of the year. It hopes to make a profit from 2012.
A few months ago, GM began a deep restructuring of the Opel brand involving the shedding of 8,000 jobs in Europe out of a workforce of 46,000, of whom half are based in Germany.
The measures will cost the company 1.0 billion euros this year and 500 million euros next year, Reilly said.
Opel, which operates under the Vauxhall brand in Britain, has been in difficulties for years and its market share has fallen.
This contrasts with the state of the parent company which returned to the stock market last week only 18 months after bankruptcy and expects to be profitable for the whole of this year, the first such annual result since 1994.
This should bust those hedge funds tomatoes. GM barely back and they are in the hole already.
It is good means Ford is doing what it set out to do paying down their debt and that they will be out of debt like CEO said he would be a year earlier than thought at end of the year 2010 instead of of 2011. If SP's article on dividends and buy backs article released could be the start of Ford doing either one interesting note I noticed since it landed under Ford news. Ford must be thinking of something to do with the money from Mazda stake sale and the debt they will be finished with at end of this year and probably will profit again in next earnings. Second article on Ford, is nothing to worry about. If anyone wanted to get on Ford now is the time otherwise Ford is going going gone. JMHO
I smell blood in the water with GM soon. Figures these analyst would turn against GM in an instant and go back to praising Ford easily. JMHO
Sick eh. GM stock not doing so hot either. Taxpayers should start whacking GM to at least get some of their taxpayer money back and when GM goes to short take GM for a ride. Taxpayers got screwed not more than once but twice by Obama selling the shares so cheap for a loss and may not get all of the bailout money back. Canadian taxpayers got screwed if we want to trade GM we have to pay in US currency on the TSX stock exchange how wrong is that. JMHO
Ford Credit Announces Redemption of Its NYSE Listed 7 3/8% Notes Due October 15, 2031, and Its 7.60% Notes Due March 1, 2032
3 minutes ago - ACQUIREMEDIA
DEARBORN, Mich., Nov. 22, 2010 /PRNewswire-FirstCall/ -- Ford Motor Credit Company today announced that on December 23, 2010 (the "Redemption Date") it intends to redeem all of its outstanding 7 3/8% Notes due October 15, 2031 (NYSE: FCZ) (the "2031 Notes") and all of its outstanding 7.60% Notes due March 1, 2032 (NYSE: FCJ) (the "2032 Notes" and, together with the 2031 Notes, the "Notes").
The redemption price for each of the Notes will be equal to 100% of the principal amount of such Notes outstanding, plus accrued and unpaid interest thereon to the Redemption Date (the "Redemption Price").
The Bank of New York Mellon is the trustee for each of the Notes and will act as the redemption agent for these transactions. The Bank of New York Mellon's address is P.O. Box 396, Attn: Debt Processing Unit (ACT), East Syracuse, NY 13057.
The 2031 Notes and the 2032 Notes will each become due and payable, at the Redemption Price, upon presentation and surrender of the respective Notes, on or after the Redemption Date at the office of the Trustee.
The 2031 Notes (FCZ) were originally issued on October 11, 2001 and October 24, 2001 in the aggregate principal amount of $750,000,000, all of which principal amount remains outstanding. The 2032 Notes (FCJ) were originally issued on February 27, 2002 and March 7, 2002 in the aggregate principal amount of $562,500,000, all of which principal amount remains outstanding.
Holders of Notes with questions regarding the details of the redemption may call The Bank of New York Mellon Bondholder Relations Department at 1.800.254.2826.
Ford Motor Credit Company LLC is one of the world's largest automotive finance companies and has provided dealer and customer financing to support the sale of Ford Motor Company products since 1959. Ford Credit is an indirect, wholly owned subsidiary of Ford. For more information, visit www.fordcredit.com.
SOURCE Ford Motor Credit Company
Article 2
US examining auto rental fleet safety
1 hour ago - Reuters
US examining auto rental fleet safety
* Highway safety agency opens audit of safety claims
* Regulators to review GM, Ford, Chrysler records
* Review prompted by petition to halt certain sales
WASHINGTON, Nov 22 (Reuters) - U.S. auto safety regulators want to know whether rental car agencies are making necessary repairs on rental fleets totaling nearly 3 million vehicles.
The National Highway Traffic Safety Administration (NHTSA) said on its website on Monday it would review records from General Motors Co (GM), Chrysler Group, managed by Fiat SpA FIA.MI, and Ford Motor Co (F) on compliance with recall fixes.
NHTSA said it became aware in recent months of crashes, some of them fatal, involving rental vehicles included in recalls issued to remedy safety defects.
The agency did not list any crash, injury or fatality details relating to its audit.
NHTSA said the Federal Trade Commission (FTC) has been asked to prohibit certain rentals if required repairs have not been completed.
(Reporting by John Crawley; Editing by Bernard Orr)
Maybe Eurozone still not giving out full details yet. Wednesday heavy data if it is good Ford can at least get out of this funk under 17. Ford hitting 20 I think would be more for next year 17-18 maybe sooner than we think. JMHO
Doesn't necessarily means GM will continue to go up. Retail investors and institutional are basically trading it like any other stock right now for the exception it will just keep above it's IPO price. Ford will go on trading like it always does with the market. Only difference is because F has the options, puts, calls trading and GM not until November 29. GM trading PPL are basically day trading it knowing that hedge funds have their hands on it and will keep it above it's IPO price if it falls the heavy investors would be pretty upset to invest in GM and the price falls below that IPO price substantially. Looking so far at GM trading price it isn't going to do well, as it hardly even broke 34.00 the first day of trading and on the second day of trading it stayed pretty much in the same range when all they hype was over. Just wait until GM gets to option trading that price is going to be very volatile more than Ford. I see GM as a flipping trade for now until they can prove their worth for anyone to really see it as a turn around story like Ford. I'd like to see how many investors bet it to fall and how many bet it to rise. Hedge funds play both sides of the fence so makes GM one scary stock to play in for at least 3-6 months to see if it stabilizes at all. JMHO
November 29 is when GM could do options it must stay above it's IPO price of 33 before it will be allowed to start options. GM cannot be shorted until then. There are no options at this time for GM until Nov 29.
Ford may hit high 17 to mid 18 by year's end. I believe Ford will hit somewhere in 20- low 20's sometime in the year 2011. Barring the market conditions. Eurozone bailout is due soon. Since this week end is Thanks giving day and Black Friday will slow the market down a bit on lower volume some earnings due out on Monday it is Wednesday that heavy data is going to hit the markets. December nearing holidays and tax time. Ford will hit 20 on it's own January they have first quarter earnings and the car show is around the same time could give Ford a lift. JMHO
http://www.reuters.com/article/idUSTRE6AC1JP20101121
http://www.guardian.co.uk/business/2010/nov/21/six-days-that-humbled-ireland
Wait to short GM since the options are out of end of month wait about 2 months see their earnings first. They are going to try and keep it above the line of the IPO price and then the fun begins on GM. If anything flip and trade first probably in the first few months of 2011 they will start shorting GM wildly. You are welcome. I watch both GM on TSX and US trade because of the currency difference GMM.U which is TSX exchange does better they trade close but the Canadian currency most likely will climb and that will make a difference in the GMM.U stock. If you to short do it on the US GM side.JMHO
GM Stock's High Profile, Volatility Makes Options A Prize
By Brendan Conway, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- General Motors Co.'s (GM) stock options seem destined for popularity even if the shares can't maintain the current euphoria.
The big rush of institutional investors
in the auto company's initial public offering is seen as all but guaranteeing strong volume in GM options, which start trading Nov. 29. But at least at the outset, GM's stock could be volatile. That would put a special charge into the options.
"I think they're going to be extremely popular," OptionMonster.com co-founder Jon Najarian said. Long-term investors are likely to carry out yield-enhancement and other conservative strategies much like they do in Ford Motor Co. (F), he said.
But the company's blockbuster initial public offering is likely to draw lots of traders who wouldn't normally traffic in the shares. Early volatility means pricier options, which could attract speculators to ramp up volume early.
"In the short term I think GM could be volatile, given the excitement," TD Ameritrade Chief Derivatives Strategist Joe Kinahan said. "After a month or two it should revert to the industry average."
Investors can read useful information about a stock's outlook into the pricing of its options. Firms are already building their pricing expectations.
Currently, OptionMonster predicts the price of GM's contracts should be about in-line with Ford and Tata Motors Ltd. (TTM). They will be more expensive than Toyota Motor Corp. (TM) or Honda Motor Corp. (HMC).
That would be a favorable volatility outlook for GM shareholders. In the rosiest scenario, GM's options turn out much like Ford's, which are often used to generate income on a stock that has turned in a strong 2010. Ford options averaged about a quarter million trades per day recently, or more than 1% of the industry's entire recent volume.
At the same time, a darker future can't be ruled out.
"I wouldn't be surprised to see a heavy call selling contingent too, as investors attempt to generate income on GM shares when they think the shares will stagnate for a period of time," said Todd Salamone, senior vice president of research at Schaeffer's Investment Research.
GM options launch on CBOE Holdings Inc.'s (CBOE) Chicago Board Options Exchange and the International Securities exchange on Nov. 29, the Monday after Thanksgiving. Exchange rules require five days with the stock trading above $3 to establish the history and legitimacy of a stock before options can be listed.
On its first day of trading, GM's shares rose $2.52, or 7.6%, to $35.52 in early activity.
-By Brendan Conway, Dow Jones Newswires; 212-416-2670; brendan.conway@ dowjones.com
(END) Dow Jones Newswires
11-18-101055ET
Copyright (c) 2010 Dow Jones & Company, Inc.
Yes he will this article is some thing investors should think about before they think of trying to sell Ford. Now who is really manipulating Ford here.
General Motors stock rises on second day following IPO; price recovers from early drop
Fri Nov 19, 7:39 PM
Tom Krisher, The Associated Press
By Tom Krisher, The Associated Press
DETROIT - General Motors' stock rose the second day it traded as it rebounded from an early swoon.
The automaker's stock (NYSE: GM) climbed seven cents, or 0.2 per cent, in New York to close at US$34.26 on Friday, one day after it began trading on Wall Street again, signalling the rebirth of an American corporate icon that collapsed into bankruptcy and was rescued with a $50 billion infusion from taxpayers. In Toronto, the stock (TSX: GMM-U.TO) closed up 27 cents at US$34.28.
As trading began Friday, GM's stock dropped $1.08 to $33.11 as investors sold it to lock in profits. But buying returned and gradually lifted the stock until it passed Thursday's closing price of $34.19 near the end of the day.
As the stock fell, bankers who managed GM's initial public offering probably asked their larger investors to start buying so it wouldn't fall below Thursday's IPO price of $33 per share, said Peter Henning, a law professor at Wayne State University and former lawyer with the U.S. Securities and Exchange Commission.
A drop below $33 could anger customers who were persuaded to buy the stock in the IPO. It's also possible, Henning said, that investors who saw the price drop decided to buy, either for the first time or to increase their stakes.
SEC regulations stop the banks from buying shares on their own, Henning said.
Analysts said the initial sell-off likely was a combination of investors taking profits and people selling on fear that the price would drop even further.
Spokeswomen for GM and Morgan Stanley, one of the lead banks in the deal, would not comment on the day's trading. A message was left for a spokeswoman from J.P. Morgan, the other lead bank.
There's a lot riding on GM's stock price in the coming months, especially for the U.S. government, which lent the automaker US$50 billion to save it from financial ruin last year. In exchange, the government got a 61 per cent stake in GM, and it hopes to get the bailout money back from the IPO and several follow-up sales that could take years.
GM, just 16 months out of bankruptcy protection, has made an impressive turnaround from losing billions before its restructuring to making $4.2 billion in profits in the first nine months of the year.
GM made a successful return to the New York Stock Exchange on Thursday, at least by some measures. After being priced at $33 a share in the IPO, it opened at $35. It ended the day up 3.6 per cent, after trading as high as $35.99 in the first few minutes of trading. Almost 457 million GM shares traded, about one tenth of all shares trading on the exchange.
The government and GM's other owners sold 478 million common shares in the IPO, bringing in a total of $15.8 billion.
The federal treasury made $11.8 billion in the IPO by selling 358 million shares. It stands to make $13.6 billion — and lower its stake to 33 per cent — if bankers exercise options for 54 million more shares. If the options are taken, the government will have 500 million shares left, and they must sell them for $53 each in order to recoup all the bailout money.
Ron Bloom, the Obama administration's point person on the auto industry restructuring, said bankers have 30 days to decide on the options, and it's "completely their decision."
"We've asked that we be informed when they've made it, but we have not asked to weigh in and we do not intend to weigh in."
The Treasury Department cannot sell additional shares for another six months, and Bloom said no decisions have been made on a timetable for selling the remaining stake. He would not say if he expects the government to get all $50 billion back.
____
Ken Thomas contributed to this report from Washington, D.C.
US Thanksgiving next Thursday and then Black Friday for US. Canada market opened all week. US stock closed I think Thursday only go to NYSE and search holidays it will tell u what holidays US stock exchanges are closed and TSX exchange holiday schedule if you go and google TSX exchanges.
I wasn't concerned with Ford. It would have bounced back after the hit it took off a good day on market. GM got side-swiped like I knew it would though it came back a bit not much pretty close at one point to it's initial public offering. Euro will bailout Ireland no doubt. As for China they did the right thing today for their inflation. Next to bat China will slightly raise their yuan a bit if these measures don't give what the Chinese have intended to do to bring down inflation. As for little tit for tat with US and China I am sure China will not bow to pressure and will just cause ruckus in the REE sector and pretty much to what China does best take care of China. Bush tax will probably do a stay anyway on a compromise for at least another year at the most. Ford will be fine. JMHO
Yup I live in Burnaby BC and that is all they drive Honda's, toyota, Fords and BMW and the usual ferrai's, porsches GM NOT. Even then they are driving the toyota hybrid over the GM is insane with their prices. Lucky them GE decided to buy a few from them the Volt otherwise I cannot see the average Joe forking over that type of money when oil is cheaper to use and other auto makers have fuel efficient cars for way less than the Volt. GM's options start trading on November 29 and I can see their stock start to fade down. Earnings for Ford will be in January 27 somewhere around there. I can bet Ford will profit once again with the stake sale of Mazda and their Fusion and the Fiago is selling great. Their sales in emerging markets will be profitable, maybe not so in European markets but Canada, China, Brazil and India no sweat for Ford.
Figures eh John. LOL the poor retail investors that listen to Buckingham and the hedge funds they work for.
Here in Canada that Volt base price is almost 45,000 not including our lovely HST tax on top of that. Ford is more bought in Canada, Honda, and Toyota GM is last on the list here. I highly doubt GM Canada sales will beat Ford. GM has to gain North American shares and the US it's not there in Canada Ford is number one out here. GM is and you are right Trueheart a SELL, SELL, SELL
Ford is worth as much as any number as long as they continue to do what they are doing. Ford has done many good things over the years and they continue to excel. GM has a long way to go to prove anything Ford has done since 2008. Judge for yourself on fundamentals of Ford and what Ford is doing not what others say. Like I said this type of trading today was obvious, as the other car makers did not take a beating like Ford did. It's only because GM and Ford always went head to head with each other in competition. This is all manipulation and Ford after hours is back up again. Ford need to consolidate a bit since it's run but today was just an excuse to do it with GM IPO out just watch Ford's trading and you will understand this was not a normal day for Ford when indexes are in triple digit gains this was pure manipulation on parts of hedge funds and panicked buyers protecting their profits and sell on the news junk. If investors were smart today many of them took the opportunity to buy more Ford shares. The 4 k beating you took will turn into a nice profit in the end holding onto Ford. I took a 10k beating when I first got into Ford a few months later I made 30k profit off Ford ( I bought my husband a new HOG for his birthday with that money), this is the second time in Ford and at first was down but within days made a 8 K profit and still in profit because I got it down in the low 14 level. JMHO
F Ford Motor Company 16.12 -0.56 -3.36% 55.98B
TM Toyota Motor Corp. (ADR) 77.29 +1.44 1.90% 121.19B
TSLA Tesla Motors Inc 29.89 +0.40 1.36% 2.79B
HMC HONDA MOTOR CO., LTD. ... 37.99 +1.04 2.81% 68.47B
NSANY Nissan Motor Co., Ltd.... 19.33 +0.26 1.36% 40.44B
DDAIF Daimler AG (USA) 69.35 +2.85 4.29% 71.02B
VLKAY Volkswagen AG (ADR) 29.25 +1.27 4.54% 68.03B
NAV Navistar Intl. Corp. 52.88 +1.12 2.16% 3.79B
TTM Tata Motors Limited (ADR) 32.74 +1.05 3.31% 18.68B
SPAR Spartan Motors, Inc. 5.32 +0.19 3.70% 173.37M
FSS Federal Signal Corpora... 6.20 +0.14 2.31% 385.73M
UPDATE:Obama To Make Statement On GM IPO Thursday
(Updates with comments from White House press secretary.)
By Jared A. Favole
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--President Barack Obama will make a statement to the press Thursday on the initial public offering of General Motors Co. (GM) and the government is on track to recoup all of its investment in the iconic car maker, White House Press Secretary Robert Gibbs said.
Obama's statement, scheduled for 4:15 p.m. EST at the White House, comes as GM initiated a public offering after being rescued by the federal government and going through bankruptcy proceedings.
Gibbs, in a briefing with reporters, said, "We continue to be on track to recoup the entire investment made by the Obama administration."
Obama has hailed the government's investment in GM, saying it saved thousands of jobs at a time when the economy was on the brink of collapse.
In a statement Wednesday evening, Obama said GM's IPO marked a major milestone for the company and the auto industry. He also defended the government's intervention.
"Supporting the American auto industry required tough decisions and shared sacrifices," Obama said. "But it helped save jobs, rescue an industry at the heart of America's manufacturing sector, and make it more competitive for the future."
GM shares opened Thursday at $35 apiece, a 6% rise over their $33 IPO price. The shares recently traded at $34.41, up 4.2%.
-By Jared A. Favole, Dow Jones Newswires; 202.862.9256; jared.favole@dowjones.com
Believe me GM is going to get whacked and no doubt after a few days of trading. It was dropping in the end and the hedge funds made sure they kept it up. On the TSX exchange they barely eked 34.00. The shorts will come out on GM and you will not sorry you held Ford. I got an SP report on Ford today they target Ford at 18.00 and so do most analyst for now. My RBC targets Ford performance at 23.00 for 2011. Ford will beat their earnings and pay off their debt by end of this year and GM will lose in next earnings, they already are losing in the European division and that will show next earnings. Ford normally follows the broad market on a good day like this Ford would have been up no problem if it wasn't for GM. I wouldn't worry for Ford. JMHO