Instant View: GM files for landmark IPO
(Reuters) - General Motors Co filed for an initial public offering of stock on Wednesday, clearing a key hurdle toward paying back U.S. taxpayers for a controversial bailout just over a year after its bankruptcy.
Trading in GM shares is expected to start sometime between late October and the November 25 Thanksgiving holiday.
DENNIS VIRAG, PRESIDENT, AUTOMOTIVE CONSULTING GROUP
"What they need to do is to continue to show they're making progress on an operational basis. This is a very early step in the company going public.
"The uncertainty is the future market conditions. We're looking at a second half that is potentially weaker than the first half. That could certainly hurt the sale of the shares. With the change in management, we really need to see what changes, if any, will take place under (incoming CEO Dan) Akerson's control.
"From an operating standpoint, General Motors needs to show continued progress in terms of sales and profitability. They have turned the corner in the first half of this year, but that's based upon a major restructuring within the company and a pickup in sales in the first half with no guarantee that's going to happen in the second half also."
HUGH JOHNSON, CHIEF INVESTMENT OFFICER OF HUGH JOHNSON
ADVISORS LLC, ALBANY, NEW YORK Continued...