General Motors is coming out of bankruptcy. It wants to be a public company again, raise capital by selling stock. Most likely it will happen before the fourth quarter. Here are some things you might want to consider about the offering.

First, the federal government owns 61% of GM.So you'll want to read the prospectus to find out if your money is going to GM or the government. If the government sells its shares to the public, then all the money raised from those shares won't go to the company. It goes straight to the U.S. Treasury. If the government sells its whole stake, then little of the capital raised will be added to GM's treasury.That probably won't happen. Instead the government will sell part of its holdings and keep some for future benefit. But it may sell all of it. If so, it will severely limit the amount of new funds GM will have to grow.

Continue reading Comfort Zone Investing: GM Comes Out

Comfort Zone Investing: GM Comes Out originally appeared on BloggingStocks on Sat, 22 May 2010 10:30:00 EST. Please see our terms for use of feeds.

General Motors continues to recover from a disastrous 2008 and 2009, and in that respect its latest quarterly numbers indicate it is partially on the way to becoming a consistent profit maker. But, it has a very long road ahead. In converting more shoppers into buyers and taking away from the competition, the automaker will be teaming up with Google Inc. (GOOG) to offer more in-car technology in combination with its existing OnStar service.

Ford Motor Company (F) has had a relationship with Microsoft Corporation (MSFT) for in-car entertainment and calling for years now, so it's good to see GM finally step up its game. It still has a way to go in keeping up with Ford's continual technology announcements, but a partnership with the largest internet brand is a good start. Google will provide its Google Maps navigation product directly onto the OnStar product, and it will initially debut on the upcoming Chevy Volt electric vehicle.

Continue reading GM to Use Google Services in the New Chevy Volt

GM to Use Google Services in the New Chevy Volt originally appeared on BloggingStocks on Thu, 20 May 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading GM's Volt: Will It Save You Money?

GM's Volt: Will It Save You Money? originally appeared on BloggingStocks on Tue, 26 Jan 2010 09:30:00 EST. Please see our terms for use of feeds.

At this coming week's 2010 North American International Auto Show, automakers are expected to try to put the dismal past year behind them and move on to whatever futures await.

Two of the U.S. auto industry's largest and oldest players, GM and Chrysler, tumbled into bankruptcy last year and required a handout from from the federal government to save them from liquidation. Was it worth it? Investors, analysts, and car enthusiasts will be looking for answers this week.

Continue reading Automakers Will Try to Put the Past Behind Them at Detroit Auto Show

Automakers Will Try to Put the Past Behind Them at Detroit Auto Show originally appeared on BloggingStocks on Sun, 10 Jan 2010 16:10:00 EST. Please see our terms for use of feeds.

Last week I wrote about five things to fear in the stock market, going from the price of gold and what it portends to federal government programs and their consequences. This week, let's look at reasons to be positive about the stock market and what they might signal for 2010.

Employment is getting a little bit better. Nothing to get excited about yet, but still, the worst of unemployment seems to be in the past. Each month for the last six,, there have been fewer layoffs. The latest employment report showed that the service sector added 56,000 jobs while manufacturing was still losing them, though by a much smaller amount than in previous months.

Continue reading Comfort Zone Investing: Rational optimism

Comfort Zone Investing: Rational optimism originally appeared on BloggingStocks on Sat, 12 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

Now that the "new GM" has risen, some of the old ideas are starting to resurface in the media. One of the freshest ideas is here again, coming off the lips of GM CEO Fritz Henderson.

The Chevy Volt, GM's all-electric passenger car slated to hits the streets sometime in 2011, will get "230 miles per gallon" according to the automaker's CEO. That's great -- but why mention the MPG figure for an electric car?

Continue reading GM's Henderson: The Chevy Volt will get 230 miles per gallon

GM's Henderson: The Chevy Volt will get 230 miles per gallon originally appeared on BloggingStocks on Tue, 11 Aug 2009 11:30:00 EST. Please see our terms for use of feeds.

Although Toyota Motor Corp. (NYSE: TM) was first out of the gate with a gas/electric hybrid vehicle back in 1997 with the Prius, the holy grail for much of the consumer automotive industry has been a 100% electric vehicle that lasts a while on a charge, is big and roomy, and has a long range.

Oh, and it must remain comparable (read: affordable) in price to its fossil fuel cousins. The former GM's Chevy Volt project was a very good stab at this (who knows where that project is heading, though), but what about world automotive leader Toyota?

Continue reading Toyota to start mass production of electric autos by 2012

Toyota to start mass production of electric autos by 2012 originally appeared on BloggingStocks on Wed, 08 Jul 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading GM won't use Michigan plant to manufacture Volt electric vehicle engines

GM won't use Michigan plant to manufacture Volt electric vehicle engines originally appeared on BloggingStocks on Thu, 29 Jan 2009 14:45:00 EST. Please see our terms for use of feeds.

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

General Motors Corp. (NYSE: GM) will never be the same. The American manufacturing icon is in the worst shape of its life in the past five decades, it's not selling the larger vehicles that have been its bread and butter for years and its stock is absolutely in the tank. It's also shutting down factories as it feverishly tries to reinvent itself. After all, Madonna has done this many times -- so why can't GM?

Okay, that's an unfair comparison. But for long-term survival, companies always need plans to rapidly change with the times, even if the money needed for that flexibility conflicts with the incessant market need for quarterly expectations. After all, like we've seen this week, the market is more emotional than a 14 year-old girl. It always will be. So, what can GM do? It's hard to say, but time is of the essence. Makeover times in this age should take double-digit months, not double-digit years.

Wipe off the dribbling eye shadow, visit Neiman Marcus, and get an extreme makeover -- that's what. Since GM really doesn't have a cash pile like some other blue chip companies, can it pay for a makeover? Doubtful. Can companies reinvent themselves with marketing and image? Sure, this happens all the time.

Continue reading Makeover needed: General Motors

Makeover needed: General Motors originally appeared on BloggingStocks on Thu, 23 Oct 2008 10:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The books of Fannie Mae -- Federal National Mortgage Association (NYSE: FNM) -- and Freddie Mac -- Federal Home Loan Mortgage Corporation (NYSE: FRE) -- are being examined by the Federal Reserve and the Office of the Comptroller of the Currency to review their financial condition, according to the Wall Street Journal.
• The Wall Street Journal also reported that the Chevy Volt, an electric car from General Motors Corporation (NYSE: GM), is slated to roll out in two years and it received a major boost from 36 utilities that operate in 40 states who agreed to work together to make the plug-in vehicle possible. Among the utilities are American Electric Power Company Inc (NYSE: AEP), Consolidated Edison Inc (NYSE: ED), Duke Energy Corporation (NYSE: DUK), and Edison International (NYSE: EIX).
• Struggling mortgage lender Paragon is reportedly in talks with The Blackstone Group LP (NYSE: BX) about a potential takeover by Blackstone, the Financial Times reported.

• The New York Times reported that TiVo Inc (NASDAQ: TIVO) will today introduce a "product purchase" feature in partnership with Amazon.com Inc (NASDAQ: AMZN). Under TiVo's plan, the television remote control will be turned into a tool for buying products that are advertised and promoted on talk shows and commercials.

Newspaper wrap-up: Fed, Office of the Comptroller scrutinize Fannie, Freddie books originally appeared on BloggingStocks on Tue, 22 Jul 2008 08:28:00 EST. Please see our terms for use of feeds.

The bad news just keeps coming for General Motors (NYSE: GM). The beleaguered auto giant has announced that it will offer 0% financing to help get rid of its growing inventory of inefficient trucks and SUVs, even as it is forced to raise prices due to higher raw material costs. Its once proud Hummer brand is now an albatross that the company is considering unloading. And its market cap of $7.5 billion is lower than not only Toyota (NYSE: TM) but also ailing Ford (NYSE: F) -- GM has lost so much value that a writer at CNNMoney is making the argument that it should be removed from the Dow Jones Industrial Average.

One bright spot for GM has been the Chevy Volt, a hybrid car that has generated considerable excitement in the automotive press. The design of the car is groundbreaking, with a large battery that is recharged by a small gas engine. This is an advance over the popular Toyota Prius and other hybrids, which are essentially gasoline-powered vehicles that use batteries to improve mileage and emissions. With the Volt, scheduled for production for the 2010 model year, GM could claim a real technological advance for the first time in years, and maybe regain some market share.

But there's only one problem: it is highly unlikely that GM will be able to deliver the Volt as promised, according to an Atlantic piece about the car. The article is filled with fascinating details about the ongoing development of the car, especially the frantic pace and rapid innovation required to get the car into production shape. But an unnamed executive told the magazine that this is exactly the problem. The development process has been too compressed, which will force GM to either fail to meet its target date or, worse, to deliver an inferior product. As the executive put it, "They're making a huge mistake."

Continue reading Is the Chevy Volt 'a huge mistake' for GM?

Is the Chevy Volt 'a huge mistake' for GM? originally appeared on BloggingStocks on Tue, 24 Jun 2008 14:55:00 EST. Please see our terms for use of feeds.

Continue reading As GM faces $4 gas, it's bye bye Hummer

As GM faces $4 gas, it's bye bye Hummer originally appeared on BloggingStocks on Tue, 03 Jun 2008 10:20:00 EST. Please see our terms for use of feeds.

GM's Lutz hails Volt electric car as the company's next, best hope originally appeared on BloggingStocks on Thu, 17 Jan 2008 12:04:00 EST. Please see our terms for use of feeds.

General Motors racing Toyota to 100% electric vehicle originally appeared on BloggingStocks on Mon, 19 Nov 2007 17:15:00 EST. Please see our terms for use of feeds.

GM to shock market with 60,000 Volts originally appeared on BloggingStocks on Wed, 22 Aug 2007 12:05:00 EST. Please see our terms for use of feeds.