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• Tuesday, 22 May 2012

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• Auto Industry Heads For Crisis - 31 March 2011

Back in November 2008, US automakers were a hot topic in investment terms, with fear-driven speculation that failure of any of the so-called 'Big Three' automakers – General Motors, Ford and Chrysler – would be devastating to the US job market. By the end of 2008, a glimmer of hope in the form of government bail-outs, offered some relief to workers fearing job losses, and investors breathed a collective sigh of relief. By February 2009, GM and Chrysler were given the task of submitting plans to authorities on how they would utilize government assistance to recover. Ford declined government aid at that time. Drastic cost-cutting, job losses and other measures helped put the Big Three on the road to recovery.

• Investor Demand High for GM IPO - 18 November 2010

Since General Motors put word out that it was planning an initial public offering (IPO) the response from eager investors has resulted in a revision of the original IPO figure and, starting Thursday November 18, GM will be offering $4.6 billion worth of preferred shares, as well as 478 million common shares which should fetch between $32 and $33 per share. This move will go down in US stock market history as the largest IPO on record, even if preferred shares are taken out of the equation.

• GM Drop in Sales May Deter IPO Investors - 2 September 2010

In mid-August General Motors filed the necessary documentation with US regulatory authorities for an IPO reportedly to the value of around $50 billion. GM took this step to extricate the company from the US and Canadian authorities that are currently major shareholders, holding 72 percent of GM's equity. The success of the IPO would depend largely on whether investors are prepared to give General Motors another chance, after it had to be bailed out of potential bankruptcy more than a year ago. So, with a lot riding on the success of the IPO should it be approved, it was disconcerting news that GM's US market sales for August 2010 were around 25 percent lower than August 2009. It's true that the Obama administration’s "cash for clunkers" program did much to boost sales at that time, but even taking that into account, GM's August sales are a cause for concern and may deter investors from supporting the upcoming IPO.

• GM Moves Ahead With IPO Plans - 19 August 2010

It was thirteen months ago that the U.S. government rescued General Motors from bankruptcy and landed up owning around 61 percent of the company in return for financial assistance to the tune of $50 billion. And now, despite the weak IPO market and a less than inspiring track record, GM is set to offer shares to the public once again in an effort to pay off their debt and reclaim full ownership of a company that was once part of the portfolio of many serious investors. But opinion is divided as to whether they will be able to rise to those prominent levels again, with the most obvious question being whether investors will give the automaker another chance.

• Fallen Angels of the Stock Market - 20 July 2009

While there may be some dissension in the world of finance with regard to the meaning of the term "fallen angels", in general it refers to stocks that were once highly sought after and, due to any number of reasons, have fallen from grace with investors. The recent spate of companies that have had their credit ratings downgraded to below investment grade or "junk" status are considered to be fallen angels.

• GM’s Government Aided Come-Back Approved - 6 July 2009

Following three days of hearings in New York's bankruptcy courts last week, Federal Judge Robert Gerber approved a plan for General Motors to make a government aided come-back from bankruptcy. Judge Gerber noted that the multi-faceted plan was "the only available means to preserve the continuation of GM’s business". Having filed for court protection on 1 June, General Motors will essentially create a new company, one that is free of crippling debt and costly contracts. Unsecured bondholders who were given the opportunity to present their views at the hearings made it known that they were disappointed by the refusal to consider alternative means of restructuring and that the bankruptcy process had been speeded up to comply with the Treasury’s deadline of 10 July for government aid.

• Third Quarter Kicks Off On Positive Note On Wall Street - 2 July 2009

Wall Street started the third quarter of 2009 on a positive note, with all three major stock indicators notching up small gains on Wednesday. The Dow Jones industrial average rose 57 points, the Standard & Poor's 500 gained 4 points, and the Nasdaq composite climbed 11 points, being 0.7 percent, 0.4 percent and 0.6 percent respectively. The improved performance of stocks is being attributed primarily to better than expected housing and manufacturing reports. An especially encouraging aspect of the manufacturing reports is that customer inventories are too low, suggesting that production figures should pick up soon as inventories are raised to more realistic levels.