SILLY FOOL GM IPO IS NOT FOR YOU - The Firearms Forum

cycloneman · 11-17-2010, 10:48 AM

We must learn our place. And who said Obama was different then the rest?

http://www.fool.com/investing/genera...e-for-you.aspx

Do you want a piece of the General Motors IPO? Get in line.

Or perhaps "get out of the line" might be a more accurate description of how the U.S. Treasury is handling this IPO. For all the talk of how "we the people" own "Government Motors," and how we'll soon "get our money back," with interest, the facts of Thursday's IPO prove one thing certain: This IPO is being run by the bankers and for the bankers.

Sorry, small investor. No pie for you
Why do I say that? Well, consider: Say you're an individual investor, hoping to cash in on cheap IPO shares at their undervalued offering price. How are you going to do that?

Probably, you plan to log on to your online brokerage account at Schwab (Nasdaq: SCHW), TD AMERITRADE, or E*TRADE (Nasdaq: ETFC) Thursday morning, and place an order to buy the shares at their advertised $26-$29 offering price. There's just one problem with that plan.

It won't work. They ain't got the shares to give you. With 365 million shares on offer, and 35 banks brought in to underwrite the offering and distribute the shares to interested buyers, the major discount brokers catering to small investors like you and me have not been allotted shares. (Caveat: Fidelity apparently managed to acquire a small allotment from its relationship with Deutsche Bank -- but Fidelity won't give you a piece of this pie unless you have $500,000 invested with it.)

Instead, the bulk of the shares going up for auction Thursday will be issued via the U.S. government's favored financial institutions -- giants such as Morgan Stanley (NYSE: MS) and JPMorgan Chase (NYSE: JPM), the co-lead underwriters. Or Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC), and Citigroup (NYSE: C), who also have the inside track on this IPO.

What's a Fool to do?
Sure, some investors have relationships with these megabankers and so will be able to acquire GM shares at the offering price. These lucky fools will likely make out like bandits as GM shares rise from their understated offering price, to something approaching a fair value. As for the rest of us, we'll have to "buy after the pop" (if we dare). We can still own GM -- but only by purchasing shares second- or third-hand from those who've made the initial profit.

The only sure thing in this IPO: Before you get a chance at your piece of the GM IPO pie, the megabankers will get theirs. Back of the line, Fool.

carver · 11-17-2010, 11:56 AM

This country is going to the dogs! What a load ................

Jeff Midguard · 11-17-2010, 12:31 PM

One more reason not to shop at the G.M. stores.

glocknut · 11-17-2010, 12:46 PM

Quote:

Originally Posted by Jeff Midguard

One more reason not to shop at the G.M. stores.

As if a test drive was not allready enough to discourage a GM purchase....

mike
gn

cycloneman · 11-17-2010, 01:18 PM

NOTHING PUBLIC ABOUT THIS PUBLIC OFFERING IS THERE??????

FUNNY HOW YOU CAN TAKE TAXPAYER MONEY TO TAKE CONTROL OF PRIVATE BUSINESS, THEN DO THIS. ON TOP OF ALL OF THIS GM IS NOT GOING TO PAY TAXES FOR WHO KNOWS HOW LONG.

WOW! WHAT CHANGE!

BEYOND BELIEF. WAKE UP CAUSE THEY KNOW EXACTLY WHAT THEY ARE DOING. ANYBODY WHO GIVES THEM THE BENEFIT OF THE DOUBT - SHAME ON YOU!!!!!

keepitlow · 11-17-2010, 05:52 PM

People got wiped out in GM and are ready for more.

But lots of the buyers are banksters that don't care where they do with the $$

Carne Frio · 11-17-2010, 10:39 PM

You can buy those shares for less than $20 by
next January, if GM's performance history is
any guide.

Jeff Midguard · 11-18-2010, 08:12 AM

Quote:

Originally Posted by Carne Frio

You can buy those shares for less than $20 by
next January, if GM's performance history is
any guide.

That's what I'm thinking. IPO sounds way overpriced.

NRA_guy · 11-18-2010, 05:32 PM

Amazing! Thousands of GM stock holders got screwed by the GM bankruptcy and now people want to buy back in.

There really is one born every minute.

If I had money to invest and could buy GM stock, I wouldn't.

I have not seen anything about how the unions are coming out on this deal.

11-17-2010, 10:48 AM	#1
cycloneman Advanced Senior Member Join Date: Dec 2008 Location: Louisiana Posts: 7,434	SILLY FOOL GM IPO IS NOT FOR YOU We must learn our place. And who said Obama was different then the rest? http://www.fool.com/investing/genera...e-for-you.aspx Do you want a piece of the General Motors IPO? Get in line. Or perhaps "get out of the line" might be a more accurate description of how the U.S. Treasury is handling this IPO. For all the talk of how "we the people" own "Government Motors," and how we'll soon "get our money back," with interest, the facts of Thursday's IPO prove one thing certain: This IPO is being run by the bankers and for the bankers. Sorry, small investor. No pie for you Why do I say that? Well, consider: Say you're an individual investor, hoping to cash in on cheap IPO shares at their undervalued offering price. How are you going to do that? Probably, you plan to log on to your online brokerage account at Schwab (Nasdaq: SCHW), TD AMERITRADE, or E*TRADE (Nasdaq: ETFC) Thursday morning, and place an order to buy the shares at their advertised $26-$29 offering price. There's just one problem with that plan. It won't work. They ain't got the shares to give you. With 365 million shares on offer, and 35 banks brought in to underwrite the offering and distribute the shares to interested buyers, the major discount brokers catering to small investors like you and me have not been allotted shares. (Caveat: Fidelity apparently managed to acquire a small allotment from its relationship with Deutsche Bank -- but Fidelity won't give you a piece of this pie unless you have $500,000 invested with it.) Instead, the bulk of the shares going up for auction Thursday will be issued via the U.S. government's favored financial institutions -- giants such as Morgan Stanley (NYSE: MS) and JPMorgan Chase (NYSE: JPM), the co-lead underwriters. Or Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC), and Citigroup (NYSE: C), who also have the inside track on this IPO. What's a Fool to do? Sure, some investors have relationships with these megabankers and so will be able to acquire GM shares at the offering price. These lucky fools will likely make out like bandits as GM shares rise from their understated offering price, to something approaching a fair value. As for the rest of us, we'll have to "buy after the pop" (if we dare). We can still own GM -- but only by purchasing shares second- or third-hand from those who've made the initial profit. The only sure thing in this IPO: Before you get a chance at your piece of the GM IPO pie, the megabankers will get theirs. Back of the line, Fool. __________________ Who are you going to serve today? -->

11-17-2010, 11:56 AM	#2
carver TFF Moderator/Host Join Date: Jul 2008 Location: DAV, Deep in the Pineywoods of East Texas, just west of Shreveport, LA Contributor Posts: 11,542	Re: SILLY FOOL GM IPO IS NOT FOR YOU This country is going to the dogs! What a load ................ __________________ Y'all be safe now, ya hear! Lamentations Chapter 5: 1. Remember, O LORD, what is come upon us: consider, and behold our reproach. 2. Our inheritance is turned to strangers, our houses to aliens. 3. We are orphans and fatherless, our mothers [are] as widows. 5. Our necks [are] under persecution: we labour, [and] have no rest. 16. The crown is fallen [from] our head: woe unto us, that we have sinned! 21. Turn thou us unto thee, O LORD, and we shall be turned; renew our days as of old.

11-17-2010, 12:31 PM	#3
Jeff Midguard V.I.P. Member Join Date: Aug 2010 Location: Baja Arizona Posts: 233	Re: SILLY FOOL GM IPO IS NOT FOR YOU One more reason not to shop at the G.M. stores.

11-17-2010, 01:18 PM	#5
cycloneman Advanced Senior Member Join Date: Dec 2008 Location: Louisiana Posts: 7,434	Re: SILLY FOOL GM IPO IS NOT FOR YOU NOTHING PUBLIC ABOUT THIS PUBLIC OFFERING IS THERE?????? FUNNY HOW YOU CAN TAKE TAXPAYER MONEY TO TAKE CONTROL OF PRIVATE BUSINESS, THEN DO THIS. ON TOP OF ALL OF THIS GM IS NOT GOING TO PAY TAXES FOR WHO KNOWS HOW LONG. WOW! WHAT CHANGE! BEYOND BELIEF. WAKE UP CAUSE THEY KNOW EXACTLY WHAT THEY ARE DOING. ANYBODY WHO GIVES THEM THE BENEFIT OF THE DOUBT - SHAME ON YOU!!!!! __________________ Who are you going to serve today?

11-17-2010, 05:52 PM	#6
keepitlow V.I.P. Member Join Date: Oct 2009 Location: US Posts: 164	Re: SILLY FOOL GM IPO IS NOT FOR YOU People got wiped out in GM and are ready for more. But lots of the buyers are banksters that don't care where they do with the $$

11-17-2010, 10:39 PM	#7
Carne Frio Senior Member Join Date: Aug 2008 Location: Near Fairbanks Posts: 701	Re: SILLY FOOL GM IPO IS NOT FOR YOU You can buy those shares for less than $20 by next January, if GM's performance history is any guide.

11-18-2010, 05:32 PM	#9
NRA_guy V.I.P. Member Join Date: May 2010 Location: Mississippi Posts: 288	Re: SILLY FOOL GM IPO IS NOT FOR YOU Amazing! Thousands of GM stock holders got screwed by the GM bankruptcy and now people want to buy back in. There really is one born every minute. If I had money to invest and could buy GM stock, I wouldn't. I have not seen anything about how the unions are coming out on this deal.