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Cars and Drivers

The Good, The Bad, And The Irrelevant: No GM Shares For The Masses

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By Douglas A. McIntyre Updated Published
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Irrelevant

CNBC has reported that GM will not allocate any shares in its IPO for customers of Charles Schwab (NASDAQ: SCHW), TDAmeritrade (NASDAQ: AMTD), and E*Trade (NASDAQ: EFTC). That means retail investors are unlikely to get shares in the offering.

It should not matter much. The GM shares are overvalued at $30, which would mean the IPO, with over-allotments–bring in $15.6 billion.

GM wants the federal government’s share of the company’s ownership below 50%, so the price of the stock will be relatively aggressive.

The shares are not worth nearly $30. GM is still in trouble in the US market where it continues to lose market share to Ford Motor (NYSE: F), the Japanese, the Koreans, and the Europeans.

GM made $2 billion in the third quarter, but that won’t last.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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