"Moving to exit our investment in GM within the next 12 to 15 months
GM's stock repurchase will be accretive to earnings per share, reducing the company's total shares outstanding by about 11%. According to the Wall Street Journal, GM expects to take a charge of approximately $400 million in the fourth quarter, which will be treated as a special item. Its next earnings report is scheduled for Feb. 11.
General Motors is expected to finish 2012 with an estimated liquidity of about $38 billion. Last Wedneday the company announced it's bringing the Chevrolet Camaro back to America. The new-generation Camaro will be built in Lansing, Mich.
The company did not say when this will happen, citing competition reasons. The Camaro was built in the U.S. until 1992, when GM moved production to Quebec, from Van Nuys, Calif. The Canadian government was given a 9% stake in GM back in 2009 in exchange for providing it with bailout money. A story in the Wall Street Journal estimates that the Canadian government owns over 156 million GM shares.So despite economic hiccups, morose media stories and a rather sordid past, GM appears to be moving in a productive direction. With both the U.S. and Canadian governments as shareholders, the pressure will be on the leadership of GM to goose the share price higher, and maybe someday pay a dividend to boot. At the time of publication the author had no position in any of the stocks mentioned. This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV