"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.
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