GM IPO: Go Ask Opel (Or Daewoo)
With news that GM’s IPO price could be headed as high as $33/share (only $10.67 more per share to taxpayer payback!), boosting the offering to some $12b, some might think that the decks have been cleared of skeptics. Not so. Though GM has emphasized its international flavor during its IPO pitch, it’s stayed away from the fact that its overseas operations haven’t been immune to trouble. Take Opel (please). Though invaluable as a development center for GM’s upscale global products, Opel is miles of bad road away from actual profitability. Just ask the guy who tried to buy Opel back when the General was trying to fire-sale its European operations.There is a lot of euphoria about the IPO, but if you dig into the numbers, they still have a problem in Europe. They are doing worse than when we looked at them two years ago, and it’s going to take a lot of cash to fix Opel. That’s my concern on the IPO.
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Buy Buy Buy. This may very well be the hidden gem we've been waiting for. And right under our noses the whole time. When Big Brothers' watching over you threats can be kept at bay and good things are bound to happen. And Big Brother has deeeep pockets.
Keep an eye on just who buys these shares...I will wager 10 oz of gold that the Federal Reserve Commercial Banks are the big buyers...Money created out of thin air and handed to the commercial banks like they just did with $600B of government bonds.