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General Motors Gets Better Than Expected Stock Exchange Listing

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General Motors money car!The US vehicle company General Motors has achieved a fruitfull listing on the Long Island Stock Exchange, just eighteen months after a taxpayer-funded rescue saved it from insolvency.

General Motors shares rose sharply in the 1st mins of trading today, selling for more than $35. Company management called it a superb day, coming eighteen months after the automobile maker applied for bankruptcy. The corporation’s Manager, Dan Akerson, explains it is the beginning of a new time. “Well we still need to answer to the government. We’re simply going to be forced to pay keen rates and we have got great people,” he announced.

Only 18 months ago GM stock was way down to a price of below ten bucks a share and the lowest point in many decades. It really did look bad, at one time it was reported that GM had got only $27 billion in cash on hand and the automaker needed $10 billion to run the business on a day-to-day basis.

Some pundits said that GM stock was a great value buy, while others warned that it may drop further and a comparison with the dangers of trying to catch a falling knife were advised. Well, the fact is that if you thought too much about the risks and waited you will have missed a great opportunity to make a profit.

The fact was that GM stock has all the time been owned by no less than about 50% by institutions. The institutions had plenty money to help GM out at favorable rates as well as GM being able to thumb noses at bond raters. GM stock is typical of (former) Blue Chip equities in the degree of ownership by institutional investors. They just pretty much wrote off the stock and hung on to it. Why would they bother to sell it.

The result is that they are enjoying the rise, and many other investors, now also seeing the rise are jumping in for the ride and picking up millions of shares every day. It loos like the government will soon get their money bank from the $50 million bailout GM was given.

If the US government allows the average man to buy in, when they sell, it could be just about one of the biggest offerings of shares to the public, which has ever happened before.

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