The Good, The Bad, And The Irrelevant: No GM IPO Shares For The Masses

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CNBC has reported that GM will not allocate any shares in its IPO for customers of Charles Schwab (NASDAQ: SCHW), TDAmeritrade (NASDAQ: AMTD), and E*E*Trade (NASDAQ: EFTC). That means retail investors are unlikely to get shares in the offering.

It should not matter much. The GM shares are overvalued at $30 which would mean the IPO, with over-allotments–bring in $15.6 billion.

GM wants the federal government’s share of the company’s ownership below 50%, so the price of the stock will be relatively aggressive.

The shares are not worth nearly $30. GM is still in trouble in the US market where it continues to lose market share to Ford Motor (NYSE: F), the Japanese, the Koreans, and the Europeans.

GM made $2 billion in the third quarter, but that won’t last

Douglas A. McIntyre

via The Good, The Bad, And The Irrelevant: No GM Shares For The Masses – 24/7 Wall St..