After the United Auto Workers (UAW) ratified their new contract with GM, the automaker's stock price soared to $40.06 per share. The Detroit Free Press now reports that GM's stock price fell nearly four percent on Tuesday, as Wall Street has begun re-considering the whole GM/UAW/VEBA thing. Morgan Stanley analyst Jonathan Steinmetz is having second thoughts about the wisdom of establishing The Mother of All Health Care Tax-Free Funds. "Funding terms appear somewhat less attractive than initially envisioned," Steinmetz prevaricated. "GM has settled a $47-billion liability for the equivalent of $37 billion, or about 78 cents on the dollar." Analyst Peter Nesvold from Bear Sterns says GM's UAW contract is potentially transformational… longer term. Meanwhile "GM shares are at a potential peak and on the way down."
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Maybe Wall Sreet got cold feet? More likely a lot of folks sitting on a lot of stock,for long time cashed out.
Me thinks there is a lot of lower management/enginering folks a little closer to the trenches.Maybe they took the money and ran.
I would !
Maybe Wall Street saw GM’s 2008 line up…..?
Like all shares they rise and fall, and they will rise again, shame that Credit Suisse, other JP Morgan analysts and Moodys are talking about the future even Moodys is talking about upgrading GM’s rating, now thats a good thing.
Most of the time Katie P hits it on the head.Katie needs to have a close and objective look at whats new in the 2008 line up from G.M.
Go for a drive,look at fit and finish,look at price,put away any preconceptions you might have.Contrary to popular belief GM is back in the game.Maybe that explains why shares have more than doubled since the dark days of Dec 05.
I believe Mikey is correct, and we’re seeing some profit-taking in the market. No doubt many investors see the current price as a bit of a post-settlement peak, and a good time to take some cash out of the market.
GM is still far from out of the woods, but things don’t look quite as bleak as they did when the DW started.
mikey:
Is the new Malibu made at your plant? That car gets my vote for most improved..ever. It went from one of the ugliest cars on the road (IMHO), to a very attractive car. It was already fairly reliable and well appointed, but if they made strides in those areas too, GM is heading in the right direction. As long as they have another option besides fake wood interior accents..