GM filed documents Wednesday begging the SEC to approve an initial public offering. It seems once again GM thinks it can blow smoke up the American peoples ass and into thinking Taxpayers will be FULLY paid back. Much like GM did with the absurd Ed Whitacre commercials where he blatantly lied “the taxpayers have been paid back in full.” However the TRUTH is the US Taxpayers have not been paid back and never will be the roughly $50 billion for a 60% stake in the company we paid! Its time for a GM IPO beat down!
As reported in USA Today veteran IPO analyst Francis Gaskins predicts, “Taxpayers will take a 50% loss.” That’s because him and other analysts assume investors won’t value GM higher than Ford which has a $42 billion market capitalization. Even though GM and Ford had the same first-half revenue, Ford had twice the profits.
It’s a long shot but valuing GM even with Ford would make GM’s 500 million IPO shares worth $84 each. (Ya right…lol) But in order for Taxpayers to be fully repaid they would have to sell their 304 million shares for about $167. What are the odds of this happening? Ya I don’t think so.
Then to top it off in the “risk factors” section of the filing GM said, “our internal control over financial reporting” is “not effective” and that could “affect our ability to report accurately our financial condition …” They also warned their new CEO was “untested” in the auto business and that GM also said it has lost business because of “a negative public perception of our products,” and it can’t guarantee it will be able to change that.
So on top of a rocky IPO to begin with, GM openly stated they can’t accurately count their money, they have no faith in their new CEO and America has a negative perception of their products. Do you really think the US Taxpayers will be paid back? I wouldn’t count on it!
