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GM's return to top continues as it rejoins S&P 500

pbrauer

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Without the help, first from President Bush, then President Obama GM would likely be gone now.

General Motors is rejoining the club, the rarified air of the Standard & Poor's 500.

It's a dose of good news not only for GM's comeback story, but for stockholders who have seen a modest stock price bump from the milestone.

Standard & Poor's announced that GM, which reigned as the biggest company in the index from 1927 to 1958, will be back in after the close of trading on Thursday. The news is sure to buoy the mood at GM's stockholders' meeting the same day. And it will mark another milestone since GM filed for bankruptcy reorganization in 2009 and, as a result, was kicked out of the S&P 500 slot it had held since the index began in 1925.

The Detroit-based global automaker will rejoin at 130 among the 500 companies on the list ranked by the value of their shares available for trading, or float. It replaces Heinz, which is out because of its acquisition by Berkshire Hathaway. Financial services provider American International Group, which, like GM, received government assistance to stay in business during the recession, also will rejoin.

MORE: Treasury to sell 30 million shares of GM stock

GM shares closed at $34.96 Tuesday, up 1.6%. In the past year, it has ranged from $18.72 to $35.48.

"The GM team has been working very hard to earn the business of customers around the world and to win the confidence of investors, and rejoining the S&P 500 shows we're very much on track," said GM CEO Dan Akerson in a statement.

GM's return to top continues as it rejoins S&P 500
 
Without the help, first from President Bush, then President Obama GM would likely be gone now.

General Motors is rejoining the club, the rarified air of the Standard & Poor's 500.

It's a dose of good news not only for GM's comeback story, but for stockholders who have seen a modest stock price bump from the milestone.

Standard & Poor's announced that GM, which reigned as the biggest company in the index from 1927 to 1958, will be back in after the close of trading on Thursday. The news is sure to buoy the mood at GM's stockholders' meeting the same day. And it will mark another milestone since GM filed for bankruptcy reorganization in 2009 and, as a result, was kicked out of the S&P 500 slot it had held since the index began in 1925.

The Detroit-based global automaker will rejoin at 130 among the 500 companies on the list ranked by the value of their shares available for trading, or float. It replaces Heinz, which is out because of its acquisition by Berkshire Hathaway. Financial services provider American International Group, which, like GM, received government assistance to stay in business during the recession, also will rejoin.

MORE: Treasury to sell 30 million shares of GM stock

GM shares closed at $34.96 Tuesday, up 1.6%. In the past year, it has ranged from $18.72 to $35.48.

"The GM team has been working very hard to earn the business of customers around the world and to win the confidence of investors, and rejoining the S&P 500 shows we're very much on track," said GM CEO Dan Akerson in a statement.

GM's return to top continues as it rejoins S&P 500

Corporate welfare works pretty well, doesn't it?
 
it is a fraud, have the original stock holders been paid back?
 
The GM bailout was a payback to the Unions for their support, plain and simple, it was a poor choice that cost tax payers billions and basically let any Union know, if they're large enough, they can through the threat of strikes and collective bargaining run any American Corporation into the ground and receive a leg up when that corporation can no longer keep it's head above water.

GM should have been allowed to go through a managed bankruptcy. Forget that their stock has risen in a Stock Market that exclusively held up with low interest rates falsely pushed down with massive printing and monetizing of our own debt. A stock market that's waiting for the first indication of stopping of QE so they unload massive amounts of over priced assets, equities and bonds.

The GM bailout set a bad example.

Mark Milke: Bailouts of GM and Chrysler were a bad idea - Opinion - Times Colonist
 
it is a fraud, have the original stock holders been paid back?

Hell no. EVERYTHING out of the Obama administration is a fraud or lie. He depends on people like the author of the OP to perpetuate the lies and misinformation as " successes "

Because of greedy Unions and mismanagement, the bond holders took a bath, Obama called them greedy when all they wanted was their principle.
 
Hell no. EVERYTHING out of the Obama administration is a fraud or lie. He depends on people like the author of the OP to perpetuate the lies and misinformation as " successes "

Because of greedy Unions and mismanagement, the bond holders took a bath, Obama called them greedy when all they wanted was their principle.

Luckily I saw the writing on the wall and sold my GM about 2 years before the meltdown. I still own some Ford that I bought during the meltdown.
 
Luckily I saw the writing on the wall and sold my GM about 2 years before the meltdown. I still own some Ford that I bought during the meltdown.

Allot of GM bond owners got burned by Obama. People that invested in GM, that helped them grow and in the end the Union, who caused their bankruptcy wound up getting the spoils.

I still say GM's heading for the inevitable bankruptcy. Obama's free money just pushed the inevitable down the road a bit.
 
Allot of GM bond owners got burned by Obama. People that invested in GM, that helped them grow and in the end the Union, who caused their bankruptcy wound up getting the spoils.

I still say GM's heading for the inevitable bankruptcy. Obama's free money just pushed the inevitable down the road a bit.

I agree, trucks are the only thing keeping them above water now
 
The GM bailout was a payback to the Unions for their support, plain and simple, it was a poor choice that cost tax payers billions and basically let any Union know, if they're large enough, they can through the threat of strikes and collective bargaining run any American Corporation into the ground and receive a leg up when that corporation can no longer keep it's head above water.

GM should have been allowed to go through a managed bankruptcy. Forget that their stock has risen in a Stock Market that exclusively held up with low interest rates falsely pushed down with massive printing and monetizing of our own debt. A stock market that's waiting for the first indication of stopping of QE so they unload massive amounts of over priced assets, equities and bonds.

The GM bailout set a bad example.

Mark Milke: Bailouts of GM and Chrysler were a bad idea - Opinion - Times Colonist

All the credit markets were closed at the time, it was Uncle Sam or nothing. Today there is approximately 1 million people working because of the bailout of GM and Chrysler. The citizens of Ohio showed their appreciation to President Obama by voting for him. Oh and all those workers are paying their share of FIT.
 
it is a fraud, have the original stock holders been paid back?

Its not a fraud, GM was bankrupt... the stockholders get nothing in a bankruptcy. That is the way it works.
 
I agree, trucks are the only thing keeping them above water now

You make that statement based upon what?

Allot of GM bond owners got burned by Obama. People that invested in GM, that helped them grow and in the end the Union, who caused their bankruptcy wound up getting the spoils.

I still say GM's heading for the inevitable bankruptcy. Obama's free money just pushed the inevitable down the road a bit.

Yet another argument made on hearsay and impression rather than fact. GM had a $10.6B positive cash flow from operations in 2012 on net income of $6B, with $26B of cash and cash equivalents in the bank and improving working capital. 16 of 20 analysts (professionals that follow the company and are privy to certain type of inside information) rate the Company as a buy or strong buy. Once again, you are vacant of fact, so please enlighten us: why is GM headed for bankruptcy? What do you know that 16 of 20 analysts do not?

http://finance.yahoo.com/q?s=GM&ql=1
 
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All the credit markets were closed at the time, it was Uncle Sam or nothing. Today there is approximately 1 million people working because of the bailout of GM and Chrysler. The citizens of Ohio showed their appreciation to President Obama by voting for him. Oh and all those workers are paying their share of FIT.

Those 1 million people would just be working for other auto companies because supply would still have to meet demand. We can understand why the people of Ohio voted for Obama and it's because they were bribed. There is no other way to put it.
 
Its not a fraud, GM was bankrupt... the stockholders get nothing in a bankruptcy. That is the way it works.

Bankruptcy means you fail, close your doors, that is not what happened. Execs go their money, the ****ing union got their money and the stock holders got nothing.
 
You make that statement based upon what?



Yet another argument made on hearsay and impression rather than fact. GM had a $10.6B positive cash flow from operations in 2012 on net income of $6B, with $26B of cash and cash equivalents in the bank and improving working capital. 16 of 20 analysts (professionals that follow the company and are privy to certain type of inside information) rate the Company as a buy or strong buy. Once again, you are vacant of fact, so please enlighten us: why is GM headed for bankruptcy? What do you know that 16 of 20 analysts do not?

GM: Summary for General Motors Company Common S- Yahoo! Finance

It is truck sales baby, most people familiar with the domestic car markets know this.

GM’s trucks sales were up 15 percent versus a year ago, including a 23 percent increase for large pickups and a 30 percent increase for large SUVs.

http://www.gm.com/content/gmcom/home/company/investors/sales-production.content_pages_news_us_en_2013_jun_gmsales.~content~gmcom~home~company~investors~sales-production.html

Booming truck sales help GM recoup market share
http://www.bloomberg.com/news/2013-06-04/american-pickup-sales-leading-best-sales-year-since-07.html
 
You make that statement based upon what?



Yet another argument made on hearsay and impression rather than fact. GM had a $10.6B positive cash flow from operations in 2012 on net income of $6B, with $26B of cash and cash equivalents in the bank and improving working capital. 16 of 20 analysts (professionals that follow the company and are privy to certain type of inside information) rate the Company as a buy or strong buy. Once again, you are vacant of fact, so please enlighten us: why is GM headed for bankruptcy? What do you know that 16 of 20 analysts do not?

GM: Summary for General Motors Company Common S- Yahoo! Finance


Interesting.

According to GM's own 1st quarter report, free cash flow was a negative $1.3 billion, their underfunded U.S. and non U.S. pension status increased to @ @$26 billion, and their global market share continued to decrease.

Earnings Releases - Quarterly Reports & Financial Releases | GM.com
 
Let's not forget that, besides sticking it to private investors, GM paid back the government with government money. They still aren't making money, they still don't have any signs of recovering. Dead man walking.
 
Bankruptcy means you fail, close your doors, that is not what happened. Execs go their money, the ****ing union got their money and the stock holders got nothing.

That is not what bankruptcy means. A Chapter 7 liquidation would be that; but this was a Chapter XI re-organization under bankruptcy.

In a Chapter XI, the shareholders usually lose all of their money; the creditors usually get $.xx/$1.00 and the bond holders, depending on security and seniority usually get their principal, but under different terms. In a chapter XI, the execs and employees usually get paid (those that do not lose their jobs, as a high percent do), but obligations to those employees (pensions, etc.) also get renegotiated and paid $.xx/$1.00 and all employee and executive options became worthless. This is exactly what happened.

No one was made whole except bond speculators that guessed right. The premise of a Chapter XI is that the long-term benefit for most of the constituencies is better than a liquidation. Most Chapter XIs do not work; this one worked beautifully.
 
That is not what bankruptcy means. A Chapter 7 liquidation would be that; but this was a Chapter XI re-organization under bankruptcy.

In a Chapter XI, the shareholders usually lose all of their money; the creditors usually get $.xx/$1.00 and the bond holders, depending on security and seniority usually get their principal, but under different terms. In a chapter XI, the execs and employees usually get paid (those that do not lose their jobs, as a high percent do), but obligations to those employees (pensions, etc.) also get renegotiated and paid $.xx/$1.00 and all employee and executive options became worthless. This is exactly what happened.

No one was made whole except bond speculators that guessed right. The premise of a Chapter XI is that the long-term benefit for most of the constituencies is better than a liquidation. Most Chapter XIs do not work; this one worked beautifully.

First lien bind holders were shafted. Being a first lien bondholder means you get first proceeds in a liquidation or are the first repaid in a reorganization. When you invest in this kind of instrument it has low yields, low dividends but your money is safe....until Obama stepped in and upended 200 years of contract and bankruptcy law.

Whats interesting is some of the investors were firemans' unions, teachers' unions and the like. Such greedy investors.
 
Bankruptcy means you fail, close your doors, that is not what happened. Execs go their money, the ****ing union got their money and the stock holders got nothing.

You do understand, don't you....that there are different types of bankruptcy. You should probably know that before making such a foolish comment.
 
Without the help, first from President Bush, then President Obama GM would likely be gone now.


Oh noes, if left to forces of free market capitalism, the industry would have downsized, became more efficient, shed its unprofitable endeavors, and adapted to the changing environment. Instead, they're merely hanging on like the Panda Bear through intervention of other forces, a useless creature unable to sustain itself. Huzzah!​
 
Interesting.

According to GM's own 1st quarter report, free cash flow was a negative $1.3 billion, their underfunded U.S. and non U.S. pension status increased to @ @$26 billion, and their global market share continued to decrease.

Earnings Releases - Quarterly Reports & Financial Releases | GM.com

GM made $.58/share in the first quarter and had positive cash flow from operations of $500B. The free cash flow is a non-GAAP financial metric which deals with the ability of a company to cover its capital investment (not service its debt) out of cash flow. It might be like measuring your ability to payoff (as in eliminate) your mortgage out of your net salary for the year (as opposed to measuring your ability to make your mortgage payments).
 
According to GM's own 1st quarter report, free cash flow was a negative $1.3 billion....
Net margin has been consistently in positive territory since March 2010. Stock is doing OK. Analyst opinion is mostly hold or buy, with some sell. GM, Ford, Chrysler are all apparently gaining market share.

Seems a bit early to declare it a permanent success, but they certainly have a better shot than if they went belly up in 2007.
 
Let's not forget that, besides sticking it to private investors, GM paid back the government with government money.
Not really. The government took a bunch of stock in the new company as "payment." The government is intermittently selling off GM stock, with the goal of total divestment at some future point.


They still aren't making money, they still don't have any signs of recovering. Dead man walking.
As noted, their profit margin has been in positive territory for over 2 years, market share is up, auto sales in general are up a bit. Again, no way to know the future, but they seem like they may survive just fine.
 
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