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GM IPO Oversubscribed

SkyRider

Banned
Mar 31, 2009
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This is so strange. GM IPO is way oversubscrtibed. Time will tell if the new investors will be rewarded or not. The problem is that GM has no assets in the ground like a resource company. In fact, its only assets are tools and die which may not be worth much if they don't sell enough manufactured cars.
 

Tangwhich

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Jan 26, 2004
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The Volt was named car of the year by 2 organizations a couple of days ago. The reviewers are super impressed. It appears that GM has built a winner and investors are going with that.
 

pro123

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Oct 11, 2006
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IMHO, it is away over-priced IPO. I would stay away from it.
 

tmleafs999

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Nov 28, 2002
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Have you check out the new hydro rates lately in Ontario as well as the HST?
Its not going to be a cheap car to drive.
 

gcostanza

Well-known member
Jul 24, 2010
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The Volt was named car of the year by 2 organizations a couple of days ago. The reviewers are super impressed. It appears that GM has built a winner and investors are going with that.
It's a piece of shit (better shit than GM normally produces, but still, shit).
 

Tangwhich

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Jan 26, 2004
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Have you check out the new hydro rates lately in Ontario as well as the HST?
Its not going to be a cheap car to drive.
Have you checked the gas stations lately? The <insert car of choice> is not going to be cheap to drive.
If you charge it during peak hours, yeah it'll be expensive.
 

Rockslinger

Banned
Apr 24, 2005
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OMG, GM is making more money ($20billion) selling stock than selling cars. Does NORTEL come to mind? GM has no hard assets, no real estate, no oil in the ground, no gold, etc.
 

nottyboi

Well-known member
May 14, 2008
22,447
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GM's profits are all not sustainable. A great deal of their R&D was written off and a whole bunch of their equipment was also written down. So their profits essentially reflect about $35B of R&D and equipment that was valued at ZERO. If the bankruptcy did not happen, they would have to depreciate that stuff AND pay about 2B/year in financing costs to finance it. depreciate 35B over 5 years and you have about 7B/year..add 2B/year in interest and that pretty much turns them into a company that loses about 2-3B/year....BOOYAH!!!
 

hinz

New member
Nov 27, 2006
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Ha ha ha investors have short memories.
LOL, they are punters, not investors. Punters gambling their hard earn money, even OPM in Wall/Bay Streets have no memories and they do day trading to get a quick buck for more hobbying.....

IMHO, you get better risk reward by investing in Defense stocks, say GD, LMT, RTN, even sucker like BA.

BTW, just wait for the US and Canadian governments to sell all of their GM shares and maybe you could think of another sequel of short selling on this "lipstick on a pig".
 

Rockslinger

Banned
Apr 24, 2005
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"Son of GM" will go the way of its father. The unions will bleed it dry and soon it will lose $4,000 on every car it sells. Unions are company and job killers. I give "Son of GM" 10 years.
 

nottyboi

Well-known member
May 14, 2008
22,447
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What a fucking sham this electric car frenzy!

Electricity is the highest cost of energy. Period. A dollar of gasoline or diesel has more energy per dollar than electric power. And then consider that you have to haul around 1,000lbs of dead weight in the form of batteries!

And as 1/3 of our energy is coal fired, until our base electrical load is reduced by 1/3, "non-pollluting" electric cars are really COAL FIRED steam engines.

As it is the price of "filling up" and electric car seems cheap... but wait until the government figures out how to add road taxes to electricity!

Suckers! Investors in GM and buyers and shills of electric cars.
Yeah but gasoline cars only convert about 12-18% of that energy to motion... electric cars convert about 90%..but sure there are some big obstacles, one of which is - do you trust GM to deliver a massively complex moon-shot of a car like the Volt with good quality and reliability? Personally I fully expect at some point they will burst into flames incinerating their occupants with a massive high voltage arc.. exploding the 10 gallons of gasoline.. and setting the lithium in the batteries on fire with a white hot flame that cannot be extinguished with water.. lol
 

Rockslinger

Banned
Apr 24, 2005
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Now that "Son of GM" is "profitable" again, it won't be long before the unions put a gun to management's head for MORE. More money, more benefits, more vacation, more pension, etc. "Son of GM" is doomed to die.
 

danmand

Well-known member
Nov 28, 2003
46,353
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Now that "Son of GM" is "profitable" again, it won't be long before the unions put a gun to management's head for MORE. More money, more benefits, more vacation, more pension, etc. "Son of GM" is doomed to die.
The chairman of GM credited the turnaround to the employees. So why should they not benefit from it?
 

nottyboi

Well-known member
May 14, 2008
22,447
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The chairman of GM credited the turnaround to the employees. So why should they not benefit from it?
I agree, except, unfortunately the profits are all smoke and mirrors. I will hold my final judgement until I see an audited statement that shows changes in cash position, but from what I can tell GM is headed for bankruptcy in 10-14 years based on it's current course.
 

Tangwhich

New member
Jan 26, 2004
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What a fucking sham this electric car frenzy!

Electricity is the highest cost of energy. Period. A dollar of gasoline or diesel has more energy per dollar than electric power. And then consider that you have to haul around 1,000lbs of dead weight in the form of batteries!

And as 1/3 of our energy is coal fired, until our base electrical load is reduced by 1/3, "non-pollluting" electric cars are really COAL FIRED steam engines.

As it is the price of "filling up" and electric car seems cheap... but wait until the government figures out how to add road taxes to electricity!

Suckers! Investors in GM and buyers and shills of electric cars.
In a decade electric cars will be a significant part of car sales. Not just GM but across the board.
 

Tangwhich

New member
Jan 26, 2004
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Sigh... why do I bother?

And how much of the coal energy gets converted to electricty, how much is lost in transforming the voltage from DC to AC, up to high voltage to send it out across the grid, how much is lost in transmission losses, how much is lost transforming back down to household current, then in the warm battery charger into the car's batteries, then to the electric motors?

Eagerly awaiting your logic...
I've replied to postings like this many times so if you wish you can search and see. But whenever I see people posting things like this it's clear that they have done no research. Electric cars are not perfect by any stretch of the imagination but with the exception of the limitations of batteries, any of the arguments given by the haters are either grossly exagerated or just plain false.
 
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