GM’s IPO Sets Stage for Other Autos (GM, F, TTM, HMC)

What will be more interesting than even the move in GM is how the other auto manufacturers move in response.  Ford Motor Co. (NYSE: F) has become the darling of the U.S. as it is profitable and did not declare bankruptcy nor did it take a government bailout.  S&P Equity Research just downgraded that issue yesterday after a mammoth move in the last two years.  Ford still closed up yesterday at $16.68 and it is indicated up almost 1% more at $16.83 this morning.  Its 52-week range is $8.40 to $17.42.

We would also watch Toyota Motor Co. (NYSE: TM) now that its major recall SNAFU seems to be farther and farther behind the company.  The ADRS have never fully recovered.  Shares are indicated up 2% this morning at $77.50 and the 52-week range is $67.56 to $91.97.

A last issue is in Honda Motor Co., Ltd. (NYSE: HMC).  Its shares are indicated up nearly 3% this morning around $38.00, and that will mark a 52-week high if it holds.  Its 52-week range is $28.33 to $37.23.

GM’s basics are here in the filing summary.

The underwriting group for GM is huge: Morgan Stanley, J.P. Morgan, BofA Merrill Lynch, Citi, Barclays Capital, Credit Suisse, Deutsche Bank Securities, Goldman Sachs, RBC Capital Markets, Bradesco BBI, CIBC, COMMERZBANK, BNY Mellon Capital Markets, ICBC International, Itaú BBA, Lloyds TSB, CICC, Loop Capital Markets, Williams Capital Group, and Soleil Securities.

GM’s CFO has been giving a media update this morning and the company has confirmed that no dividend will paid for some time to the common stock holders.  The company has to pay back Uncle Sam, it has to widdle down its mountain of debt, and it has to right its pension liabilities.  Another issue to consider is that for the concessions that its workforce took it can expect the UAW workers to want some of the upside if the company keeps doing well and remains profitable as it has now become.  This is being touted as one of the largest IPOs in history and as a giant success story.  Just remember that it took a bankruptcy, a government bailout, and endless billions upon billions of dollars in investor losses for this “success story” to come to fruition.

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JON C. OGG