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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Hey.. Buy our stock, but...

    By JGillman, Section News
    Posted on Wed Aug 18, 2010 at 06:06:49 PM EST
    Tags: GM, Government Motors, Stock, IPO, Disclosure (all tags)

    Don't get your hopes up.

    Not that anybody should expect an industry that still has a shock collar of union interest around its neck to do very well anyway.  General Motors is selling some of its action to lucky buyers.  In the filing of the IPO today, GM lowers your expectations:

    "The ability of our new executive management team to quickly learn the automotive industry and lead our company will be critical to our ability to succeed.

    Within the past year we have substantially changed our executive management team. We have elected a new Chief Executive Officer who will start on September 1, 2010 and a new Chief Financial Officer who started on January 1, 2010, both of whom have no outside automotive industry experience."

    Per der kommisar's wishes, NO-ONE qualified to run the company need apply.  In fact, even if they did, and got jobs, the discovery of whats under the hood might scare the lug nuts off em.  Continuing:

    "We have determined that our disclosure controls and procedures and our internal control over financial reporting are currently not effective. The lack of effective internal controls could materially adversely affect our financial condition and ability to carry out our business plan."

    So the filing for the IPO for the NEW Government Motors includes a disclosure that: A.  They have potentially incompetent leadership, and B. No idea where the money gets spent and a lack of oversight for such things.?

    As they say in the biz.. "Read the Prospectus."  Ay yi yi..

    < Back to school for Brooks. | "Big Brother" Ruth Johnson Removes Damaging Information from Government Website >

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    After this was posted.. (none / 0) (#1)
    by JGillman on Wed Aug 18, 2010 at 07:48:41 PM EST

    After originally posting this here on RightMichigan.com, it occurred to me that there might actually be an attempt to "depress artificially" the demand for the stock on its initial offering.  this would allow buyers who are in the know to make  a killing on "unexpected returns!"

    Or maybe as we have seen with the Volt..  It might actually represent reality.  The Volt...  A $42,000 car that requires a $8K grant from the government to entice a purchase, a $10,000 set of batteries every 3 years or less, and a $100,000,000 tax incentive package paid by taxpayers to make it happen.

    True brilliance, marketing genius, and a car that seats two comfort.. uh One comfo... well..  seats up to four vegans.

    Just awesome! (none / 0) (#2)
    by maidintheus on Wed Aug 18, 2010 at 08:32:57 PM EST
    An awesome post!

    GM (none / 0) (#3)
    by Rougman on Wed Aug 18, 2010 at 11:51:08 PM EST
    Who are they kidding?  Since profits and stock holder equity have taken a backseat to union patronization and the government's environmental agenda, GM is not a sound investment.

    Inexperienced leadership might be the least of their problems.

    Is anyone REALLY that surprised? (none / 0) (#4)
    by KG One on Thu Aug 19, 2010 at 01:04:27 AM EST
    After Pres. B.O. canned Rick Wagoner and replaced him with Fritz Henderson, he displayed his astute business acumen by botching the Penske-Saturn Deal, Magna and finally Saab.

    Pres. B.O. then replaced him with Ed Whitacre who got caught "stretching" the truth a little.

    Remember this?

    He should've actually did this.

    Don't even get me started on the pooch-screw the false prophet did to Chrysler.

    Arbitrarily nullifying legal contracts and shutting down a significant portion of their dealer network because there were "too many"?

    And that isn't even the half of it...

    I Hope They Fail (none / 0) (#5)
    by grannynanny on Thu Aug 19, 2010 at 08:43:36 AM EST
    After the sleezy and underhanded way the gubberment screwed the bond holders - I HOPE THEY FAIL!  Sorry, get in bed with the thieves and pay the price.  And I also see where the head of the UAW is reiterating the ban on non union vehicles on UAW property.  And he took the UAW center at Black Lake off the real estate market.  Perhaps Zero and Moochell are looking for a new vacation spot.

    Would it really matter? (none / 0) (#6)
    by KG One on Thu Aug 19, 2010 at 09:30:22 AM EST
    With the federal government taking the entire concept of the free market (remember that little thing called risk) and throwing it out of the window under GWB and Pres B.O., they have established the precedent that as long as you are "too big to fail" the government will run into the situation that you screwed up, wipe your backside, give you a pat on the head and send you on your way while simultaneously reaching into someone else's pocket to pay for it.

    I'm on the road quite a bit, and I can't adequately describe the level of disgust I come across towards our government when it comes to the auto companies and unions not only outside of Michigan, but as close to about an hours drive outside of Detroit.

    GM will never fail (none / 0) (#7)
    by Corinthian Scales on Thu Aug 19, 2010 at 11:01:31 AM EST
    The parasites in DC will just throw more of our coerced tax dollars at it to demonstrate Gummint Motors success.

    Be careful what yah ask for...

    Largest IPO (none / 0) (#8)
    by DrDetroit on Thu Aug 19, 2010 at 01:12:55 PM EST
    The largest IPO in history ocurred this year.  It was for $22 billion.    

    GM indicated they wanted to get between $12 and $16 billion for their IPO.

    GM owes $50+ billion.

    I am not seeing how the math works out on this one.

    I am contacting (none / 0) (#9)
    by grannynanny on Thu Aug 19, 2010 at 06:26:10 PM EST
    my financial managers and telling them - NO GM stock - NO Government Motors Stock - NO Chrysler Stock - I want ZERO in anything government.


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