GM Stock: Sell!
After the United Auto Workers (UAW) ratified their new contract with GM, the automaker's stock price soared to $40.06 per share. The Detroit Free Press now reports that GM's stock price fell nearly four percent on Tuesday, as Wall Street has begun re-considering the whole GM/UAW/VEBA thing. Morgan Stanley analyst Jonathan Steinmetz is having second thoughts about the wisdom of establishing The Mother of All Health Care Tax-Free Funds. "Funding terms appear somewhat less attractive than initially envisioned," Steinmetz prevaricated. "GM has settled a $47-billion liability for the equivalent of $37 billion, or about 78 cents on the dollar." Analyst Peter Nesvold from Bear Sterns says GM's UAW contract is potentially transformational… longer term. Meanwhile "GM shares are at a potential peak and on the way down."
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