Comments on: GM Dealers Buy $1m of Stock The Day Before CEO’s Press Conference http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/ The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 23 Nov 2009 03:13:18 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Kevin http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-608942 Kevin Fri, 18 Jul 2008 16:53:46 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-608942 What a coincidence -- the <i>Toyota</i> Dealer's Council bought a million dollars of GM put options! What a coincidence — the Toyota Dealer’s Council bought a million dollars of GM put options!

]]> By: netrun http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-608751 netrun Fri, 18 Jul 2008 16:18:27 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-608751 I'm sure that when a group of good old boys get together to buy GM stock, it's all aboveboard. After all, they are all good old boys, they'd never do anything, well, <i>illegal</i>, right? GM Dealers buying stock moments before a restructuring announcement should be used as an example of insider trading in the dictionary under: insider trading. I’m sure that when a group of good old boys get together to buy GM stock, it’s all aboveboard. After all, they are all good old boys, they’d never do anything, well, illegal, right?

GM Dealers buying stock moments before a restructuring announcement should be used as an example of insider trading in the dictionary under: insider trading.

]]> By: GS650G http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-608222 GS650G Fri, 18 Jul 2008 14:23:04 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-608222 Normally this would be called insider trading, but I think the SEC has pity for anyone taking large positions in GM right now. Normally this would be called insider trading, but I think the SEC has pity for anyone taking large positions in GM right now.

]]> By: Orian http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-608051 Orian Fri, 18 Jul 2008 13:44:39 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-608051 Wow, these guys are nuts - talking about fuel economy of GM's products as a good story - shouldn't they really be trying to get a good quality fuel efficient car to market before they are completely under? And dear god, how long does it take to get the Camaro out to the masses? They've been beating that dead horse for a few years now and still nothing in the show rooms. I had to chuckle the other day when I saw a press release for Transformers 2 that stated the Volt was going to be in it. The movie comes out next year - it's been over a year since the first one came out featuring the Camaro and you still can't buy it. I'm curious to see if TF2 makes it out before the Camaro does at this point. Wow, these guys are nuts – talking about fuel economy of GM’s products as a good story – shouldn’t they really be trying to get a good quality fuel efficient car to market before they are completely under?

And dear god, how long does it take to get the Camaro out to the masses? They’ve been beating that dead horse for a few years now and still nothing in the show rooms.

I had to chuckle the other day when I saw a press release for Transformers 2 that stated the Volt was going to be in it. The movie comes out next year – it’s been over a year since the first one came out featuring the Camaro and you still can’t buy it. I’m curious to see if TF2 makes it out before the Camaro does at this point.

]]> By: brettc http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-608021 brettc Fri, 18 Jul 2008 13:41:58 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-608021 I don't think it's insider trading. I think it's a case of a lot of GM dealers having too many servings of Kool-Aid, and they actually think GM will stop sucking soon. Unfortunately, I also think they're mistaken. I don’t think it’s insider trading. I think it’s a case of a lot of GM dealers having too many servings of Kool-Aid, and they actually think GM will stop sucking soon. Unfortunately, I also think they’re mistaken.

]]> By: Pig_Iron http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607942 Pig_Iron Fri, 18 Jul 2008 13:09:21 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607942 Would it not be wise to sll the day before the next quarterly report? Would it not be wise to sll the day before the next quarterly report?

]]> By: rprellwitz http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607931 rprellwitz Fri, 18 Jul 2008 12:59:20 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607931 GM is one of the most heavily shorted stocks on the market with a short interest greater than 30% and new borrow for short sales going out at ridiculously high levels. The easy short money had been made - i would chalk most of the recent rise up to short covering and not much more. I hope the dealers monetized their gain. I would also point out that for the first few hours of trading when the terms of the "plan" had been put out to "employees" and the general public call had not yet happened GM's shares traded below $9 before starting the rally. If the dealers had prior knowledge of what would be announced then shame on them. Either way I doubt the gain will last .... GM is one of the most heavily shorted stocks on the market with a short interest greater than 30% and new borrow for short sales going out at ridiculously high levels. The easy short money had been made – i would chalk most of the recent rise up to short covering and not much more. I hope the dealers monetized their gain. I would also point out that for the first few hours of trading when the terms of the “plan” had been put out to “employees” and the general public call had not yet happened GM’s shares traded below $9 before starting the rally. If the dealers had prior knowledge of what would be announced then shame on them. Either way I doubt the gain will last ….

]]> By: VerbalKint http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607881 VerbalKint Fri, 18 Jul 2008 12:42:15 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607881 Doubtless purchased on the advice of Hillary C. Doubtless purchased on the advice of Hillary C.

]]> By: holydonut http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607831 holydonut Fri, 18 Jul 2008 11:45:12 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607831 I also agree with some of the comments where it's a bit of a stretch to accuse them of insider trading. The first (and most obvious) reason this is not insider trading is that no entity is dumb enough to buy on insider information in such a blatant fashion as to immediately cause an investigation in their own actions. A second item would be the lack of startling news being stated at the press conference. As you quoted the day before the announcement: the press conference was intended to announce ... "<i>actions to better align the business to the current market conditions</i>." Insider trading would be more clear in a situation where the dealers sold all their shares of GM and then GM announced a cancellation of 4 US brands and a complete withdrawal from California. But instead GM made another one of their infamous restructuring plans. And the market reacted in line with their past behavior. I also agree with some of the comments where it’s a bit of a stretch to accuse them of insider trading.

The first (and most obvious) reason this is not insider trading is that no entity is dumb enough to buy on insider information in such a blatant fashion as to immediately cause an investigation in their own actions.

A second item would be the lack of startling news being stated at the press conference. As you quoted the day before the announcement: the press conference was intended to announce … “actions to better align the business to the current market conditions.” Insider trading would be more clear in a situation where the dealers sold all their shares of GM and then GM announced a cancellation of 4 US brands and a complete withdrawal from California. But instead GM made another one of their infamous restructuring plans. And the market reacted in line with their past behavior.

]]> By: obbop http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607671 obbop Fri, 18 Jul 2008 03:39:34 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607671 ""We firmly believe in GM and that we have the best products to sell," Yeah, that's an objective statement from an unbiased source. /scarcasm mode off “”We firmly believe in GM and that we have the best products to sell,”

Yeah, that’s an objective statement from an unbiased source.

/scarcasm mode off

]]> By: Buickman http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607632 Buickman Fri, 18 Jul 2008 02:13:35 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607632 Temporary rise in common share price. The Red Ink will soon be flowing again along with further debt downgrade. Also, July's results will be a disaster. Sticking with forecast of $5 by mid-August. Remember the banks always support Wags when he cuts deep. It won't last. Last report over 150,000,000 shares shorted. Combine this with the $325,000 premium on top of the normal $500,000 to insure 5 year $10 Million bond against default and you can see that the market anticipates further failure in the stock price and company performance. Red Ink Rick is not the answer. Imagine being a salary retiree. Since RIR took over as CEO in 2000, you've lost over 90% of the value in your GM stock, no longer have health care promised, and now receive no dividend. Ain't he great? How long will people continue to stand for this man to run GM deeper into the ground? How the Board could possibly continue to support him is incredible. Unless of course, this is all intentional. However, most knowledgable folks I know say he's just really that incompetent. Suppose all that will happen though is more bad news followed by more cuts. When is enough enough? GM's biggest trouble is the ineffective and wasteful marketing. Return to Greatness is a game changer when it comes to image and perception. Visit www.GeneralWatch.com where the first twenty steps are detailed. The ship hasn't completely sunk, but it's sinking. We don't need a Volt, we need a Revolt. Temporary rise in common share price. The Red Ink will soon be flowing again along with further debt downgrade. Also, July’s results will be a disaster. Sticking with forecast of $5 by mid-August. Remember the banks always support Wags when he cuts deep. It won’t last.

Last report over 150,000,000 shares shorted. Combine this with the $325,000 premium on top of the normal $500,000 to insure 5 year $10 Million bond against default and you can see that the market anticipates further failure in the stock price and company performance.

Red Ink Rick is not the answer. Imagine being a salary retiree. Since RIR took over as CEO in 2000, you’ve lost over 90% of the value in your GM stock, no longer have health care promised, and now receive no dividend. Ain’t he great?

How long will people continue to stand for this man to run GM deeper into the ground? How the Board could possibly continue to support him is incredible. Unless of course, this is all intentional. However, most knowledgable folks I know say he’s just really that incompetent.

Suppose all that will happen though is more bad news followed by more cuts. When is enough enough?

GM’s biggest trouble is the ineffective and wasteful marketing. Return to Greatness is a game changer when it comes to image and perception. Visit http://www.GeneralWatch.com where the first twenty steps are detailed.

The ship hasn’t completely sunk, but it’s sinking.

We don’t need a Volt, we need a Revolt.

]]> By: Rday http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607602 Rday Fri, 18 Jul 2008 01:48:51 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607602 Well I guess we will have to wait and see how the stock takes the bad news next week when second quarter earnings/loss data comes out. I bet RedInk Rick was just trying to get the troops excited to try and offset the financial data. Can't believe the stock will continue to rise, but wallstreet seems completely bonkers when it comes to GM and their stock. Absolutely ridiculous. Well I guess we will have to wait and see how the stock takes the bad news next week when second quarter earnings/loss data comes out. I bet RedInk Rick was just trying to get the troops excited to try and offset the financial data. Can’t believe the stock will continue to rise, but wallstreet seems completely bonkers when it comes to GM and their stock. Absolutely ridiculous.

]]> By: Engineer http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607532 Engineer Fri, 18 Jul 2008 01:10:04 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607532 Sharp eyes, RF! Go to see the <a href="http://www.thetruthaboutcars.com/next-gen-prius-gets-solar-powered-ac/all-comments/#comment-577381" rel="nofollow">OCD thing</a> is still working for you... Sharp eyes, RF!

Go to see the OCD thing is still working for you…

]]> By: ZoomZoom http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607502 ZoomZoom Fri, 18 Jul 2008 00:47:22 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607502 Yeah, I would never openly trade in my company's shares. Even if you are not privvy to insider info, you could be accused. THEN you have to defend yourself. And who has more money for the ensuing court fight, Joe Schmoe, or the US Justice Department? You do the math. There are much better choices, even in today's market. Yeah, I would never openly trade in my company’s shares. Even if you are not privvy to insider info, you could be accused.

THEN you have to defend yourself. And who has more money for the ensuing court fight, Joe Schmoe, or the US Justice Department?

You do the math.

There are much better choices, even in today’s market.

]]> By: dan8001rpm http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607492 dan8001rpm Fri, 18 Jul 2008 00:45:47 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607492 But then again,even if it is insider trading, I'm not going to complain about a GM dealer making some profit, they need all the help they can get! But then again,even if it is insider trading, I’m not going to complain about a GM dealer making some profit, they need all the help they can get!

]]> By: Stephan Wilkinson http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607461 Stephan Wilkinson Fri, 18 Jul 2008 00:32:49 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607461 Of course the only way you can substantiate the accusation is if they sell. Dangerous call. Of course the only way you can substantiate the accusation is if they sell.

Dangerous call.

]]> By: Landcrusher http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607431 Landcrusher Fri, 18 Jul 2008 00:25:00 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607431 I am pretty sure it's not insider trading. i suspect that analysts are privy to more info than GM's dealers are. I am pretty sure it’s not insider trading. i suspect that analysts are privy to more info than GM’s dealers are.

]]> By: John Horner http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607421 John Horner Fri, 18 Jul 2008 00:24:16 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607421 It is only insider trading if the dealers had material information on hand when they made the buy and which the public wasn't privy to. If someone can prove that they had an advance copy of Rick's speech then there might be a case to be made. My hunch is they just got lucky, but without an Elliot Spitzer type bulldog hounding them we will never know for sure. It is only insider trading if the dealers had material information on hand when they made the buy and which the public wasn’t privy to. If someone can prove that they had an advance copy of Rick’s speech then there might be a case to be made.

My hunch is they just got lucky, but without an Elliot Spitzer type bulldog hounding them we will never know for sure.

]]> By: mikey http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607402 mikey Fri, 18 Jul 2008 00:11:56 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607402 Thanks ferrarimanf35.Us folks up here in Oshawa are hoping for some positive news real soon. Kudos to the dealers that put thier money where thier mouth is.I'm with skooter on this one. Insider trading?Kind of a stretch wouldn't you think? Thanks ferrarimanf35.Us folks up here in Oshawa are hoping for some positive news real soon.

Kudos to the dealers that put thier money where thier mouth is.I’m with skooter on this one. Insider trading?Kind of a stretch wouldn’t you think?

]]> By: ferrarimanf355 http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607391 ferrarimanf355 Thu, 17 Jul 2008 23:59:55 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607391 mikey: Production info this Monday. Engines, transmissions, hopefully a price, stuff like that. mikey: Production info this Monday. Engines, transmissions, hopefully a price, stuff like that.

]]> By: mikey http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607381 mikey Thu, 17 Jul 2008 23:58:20 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607381 Hey ferrariman:I care. What Camaro announcement? Hey ferrariman:I care. What Camaro announcement?

]]> By: Praxis http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607341 Praxis Thu, 17 Jul 2008 23:35:37 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607341 If they have real confidence then buy the 2032 bonds. If they have real confidence then buy the 2032 bonds.

]]> By: hal http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607292 hal Thu, 17 Jul 2008 23:25:38 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607292 GM's stock price is at historic lows, if I had "confidence in GM's future" I'd be buying stock too. GM’s stock price is at historic lows, if I had “confidence in GM’s future” I’d be buying stock too.

]]> By: dan8001rpm http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607262 dan8001rpm Thu, 17 Jul 2008 23:09:36 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607262 That sure sounds like insider trading but only if they knew what he was going to say. But it's not like he was going to announce anything sensible or what he should have. Makes me wonder what the share price would be if he said was closing some brand channels or the things that really make long term sense. I guess the stock market doesn't take a long view but. Profits per quarter is all that counts.. That sure sounds like insider trading but only if they knew what he was going to say. But it’s not like he was going to announce anything sensible or what he should have.
Makes me wonder what the share price would be if he said was closing some brand channels or the things that really make long term sense. I guess the stock market doesn’t take a long view but.
Profits per quarter is all that counts..

]]> By: yankinwaoz http://www.thetruthaboutcars.com/gm-dealers-buy-1m-of-stock-the-day-before-ceos-press-conference/comment-page-1/#comment-607261 yankinwaoz Thu, 17 Jul 2008 23:06:11 +0000 http://www.thetruthaboutcars.com/?p=57022#comment-607261 Buying this stock on the open market didn't yield GM a penny of capital. GM has 566.15 million shares outstanding. 107k of that is only 0.019% of that market. Buying that small amount of the shares will not change anything. I call BS. Buying this stock on the open market didn’t yield GM a penny of capital.

GM has 566.15 million shares outstanding. 107k of that is only 0.019% of that market. Buying that small amount of the shares will not change anything.

I call BS.

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