This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

GM Shifts Into High Gear

Stocks in this article: GMVLKAYPEUGY

"Moving to exit our investment in GM within the next 12 to 15 months hint, hint is consistent with our dual goals of winding down the Troubled Asset Relief Program, aka "TARP," as soon as practicable and protecting taxpayer interests," Treasury Assistant Secretary for Financial Stability Timothy Massad recently said.

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.

EXCLUSIVE OFFER: Jim Cramer's protege Dave Peltier only buys Stocks Under $10 he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs