So investors are fighting to get into GM.
Why?
1. ...because the weak dollar is going to allow exports to be very competitive vs the cars manufactured by Japan, Europe? Or because the import of cars from Europe will drop?
2. ...because cars will be made in the US and shipped to Emerging Markets?
3. ...because cars like the Volt will get subsidized by the US Gov?
4. ...because the US population is going to grow and need more new cars?
5. ....because GM produces in several strongly growing emerging markets?
Or is GM valuation a bubble?
1. ... because loads of big european car manufacturers have plants in the US and competition will remain stiff no matter what the USD does?
2. ... the guys building TESLAs or future version of it will negatively impact sales of GM?
A. I have no idea about the valuation metrics of GM at the moment. I guess the question is, are people getting richer and do they need NEW cars? I can imagine a lot of people will switch to an electric or hybrid car when it has mass market appeal and is a lot cheaper!! I like driving 5-10 year old cars because insurance rates are low and depreciation isn't as steep as with newish cars.
B. To be honest I don't understand why there's always a silent period when information would be needed most when it comes to IPOs. Yesterday on Fox Business the guy from GM just made comments about new models they have. No hard facts about markets, competition - or anything of real value!
This poll on GM seems about right to me. They should have left range "cheap". But I guess the IB's doing the deal had to lick the US Govs shoes - lucky UBS that they're not left holding any paper ???
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