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I usually don’t have too much to say about news in the broad market, but
something about General Motor’s initial public offering today really bugs
me.
By all rights this company should have gone bankrupt years ago. The very
fact that they’re still with us today launching a $20 billion + IPO is
ONLY because of massive bailouts from the Federal Government.
And today, people who were able to buy shares at the opening price of
about $35 have already lost money on the deal, with the stock closing
below $34. That’s about a 5% loss.
Like I said, I usually try to stick with commodities, but if you’re
interested in mainstream broad market stocks, I don’t see any logical
reason for chasing shares of awful companies like GM.
For instance, my boss Ian Wyatt recently published a report about three
solid dividend paying companies averaging over 6% yields in the railroad,
oil and private equity industries.