Quote:
Originally Posted by 8cd03gro
You guys act like 1.5B is a lot. . . For reference, F has an O/S of 3.6B IIRC which is why F market cap is higher than GM at this point, despite PPS being less than half. Mark this post, IMO that number will change drastically over the coming few years.
|
I never commented on how much or how little 1.5B shares are, I'm just thinking about the most logical course of action over the next couple years.
Sure it can increase in the future, but not before the major shareholders of GM have sold off all, or at least most, of their stake specifically because of dilution. The goal is to get as much back to the major shareholders as possible, issuing new stock while they still 'owe' money to those groups would be incredibly stupid. Only ~30% was dumped last week. I don't expect them to sell off any more until after GM issues their annual financial report at the earliest. But however they do it, I expect the process to take around 2 years for the US government to sell off the rest of their stake, and who knows how long for the others. So if we figure that it would be ~2 years to have most of the 1.5B shares out on the market, it will still be some time after that until GM issues more stock of their own. Thats what I was getting at with 'any time soon'