Stock Analysts And Politicians Praise GM’s Debut On Wall Street
November 24, 2010 by Special To Personal Liberty
Market analysts believe that General Motors' (GM) debut on the New York Stock Exchange was a good start.
Although the GM stock gained about 3.6 percent profit on its first day, which is considerably lower than the average of 8 percent of other initial public offerings (IPO) in 2010, trade experts believe the debut was strong considering that the United States government was the main selling shareholder, according to Market Watch.
Matt Therian, of Renaissance Capital, said that the government, which bailed out the auto maker during the global financial crisis and will earn some of the loan back through the public offering, would have been criticized if GM's IPO was too strong.
“The bankers were sensitive to too large a pop,” Therian told the news source. “A large first-day return would indicate that the government had left money on the table.”
Scott Sweet, of the research firm IPO Boutique, called it "an excellent debut" for GM's stock. He said that almost the entire tradable stock of the company changed hands on Nov. 18.
Speaker of the House Nancy Pelosi (D-Calif.) said that GM's IPO was a sign of progress for America's auto industry. She praised President Barack Obama and fellow Democrats for taking "difficult emergency action" to rescure the U.S. auto industry, and she added that GM's debut was proof that those bailouts are paying off.