RSS Feed

Calendar

March 2024
M T W T F S S
« Feb    
 123
45678910
11121314151617
18192021222324
25262728293031

Search

Tag Cloud

Archives

Washington Post (August 10)

2015/ 08/ 11 by jd in Global News

“Matters are not as clear as is often suggested regarding short-term-driven ‘quarterly capitalism.’” The “most enthusiastic champions of long-termism” are often the “managements of companies that are dissipating the most value, such as General Motors before it needed to be bailed out.” Long-termism can also lead to short-term excesses, such as “market participants who willingly place huge valuations on many Silicon Valley companies that lack any profits and have little revenue.”

 

Washington Post (April 24)

2011/ 04/ 27 by jd in Global News

The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Later sales might as well, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.

The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Perhaps later sales could too, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.

 

New York Times (March 18)

2011/ 03/ 19 by jd in Global News

Markets ranging from copper to treasuries and currencies to the S&P 500 are being driven by the events unfolding in Japan. The impact is now extending to overseas supply chains. “In a sign of the spreading global economic impact, General Motors on Thursday became the first U.S. auto maker to close a U.S. factory because of the crisis in Japan.” GM will halt production at a Louisiana pick-up truck plant due to shortages of components from Japan.

Markets ranging from copper to treasuries and currencies to the S&P 500 are being driven by the events unfolding in Japan. The impact is now extending to overseas supply chains. “In a sign of the spreading global economic impact, General Motors on Thursday became the first U.S. auto maker to close a U.S. factory because of the crisis in Japan.” GM will halt production at a Louisiana pick-up truck plant due to shortages of components from Japan.

 

Barron’s (August 21)

2010/ 08/ 26 by jd in Global News

General Motors (GM) is preparing for an initial public offering (IPO). This is not just any IPO. President Obama has pledged that taxpayers will get their entire $50 billion investment back. Barron’s is not optimistic. “We figure that the company’s market value could be around $66 billion, or $118 a share.” That would value GM higher than Ford or Daimler, but “it would take a price of around $135 a common share” for taxpayers to get their full $50 billion back.

 

Newer Entries »

[archive]