Re: "Dilution" and such:
http://www.gminsidenews.com/forums/f...-shares-97639/
Consider the fact the US Treasury still holds a sizable stake, and Canada only sold 20% of theirs, and the UAW still has much of theirs. As many shares as were sold, last week, there are still as many or more "available" for future sale.
Now, if GM decides they'd like to issue even more for their own purposes (to generate fund$ for future product initiatives that are no doubt required) in the event that future operating profits and cashflow alone won't suffice, then even more dilution will occur.
Keep in mind there are already over a BILLION shares held by various entities...and the millions of shares sold last week are only a small portion thereof...less than half.
The US Government has stated they intend to divest themselves by late 2012, but can't sell any more shares for at least 6 months.
Fact is, the number of shares currently held by US/Cdn/UAW sources are greater than those sold, last week, and eventually (for the Gov'ts) MUST be sold.
The curious thing, to me, is that at $26-29/share (initial estimated price), for 300,000,000-or-so shares, there wasn't exactly "fighting in the streets" for those shares. But suddenly, at $31-33 for
manymany more, with an "interim" 3rd Quarter report of $2+ billion 1/4ly profit, which was
NOT unexpected, the "scramble" was on...
"Emotion"...Wall St.'s favorite ally...