NEW YORK (TheStreet) -- General Motors
(GM) has received the best Christmas present it could ask for: an end to the government bailout and a smooth transition of power to a GM lifer.
The federal government announced on Monday that it has sold its remaining stake in the company, taking a $10 billion loss on the deal, although one think tank estimates the bailout saved 1.2 million jobs and preserved $34.9 billion in tax revenue in 2009 and 2010.
GM's shares closed trading Tuesday at $40.40. It has a market cap of $56 billion, and with $115 billion in revenue for the first three quarters, it may top last year's $152.2 billion.
GM generated $3.9 billion in cash flow from operations in the third quarter and had $20.4 billion in cash as of Sept. 30. The turnaround is not complete, as The Deal reports, but the company is well on its way.
This year, GM stock traded in tandem with that of Ford
until the middle of November, when it bounced off resistance and rose 10% for the month while Ford fell 2%. GM shares are up 42% for the year
and its sales for November were up 19%
from a year earlier.
Many reporters are commenting that incoming CEO Mary Barra is female. What they should be commenting on is that she has spent her entire life with the company. Barra's father was a die maker for 39 years and she grew up in Pontiac, Mich.
At 51, she has done all the traditional jobs on the way to this one, finishing most recently as vice president of product development, a common stepping stone on the way to the top job. Her Stanford MBA was earned as a company employee.
Barra came to the company at age 18, entering what was then the General Motors Institute for training as an engineer. Her path to the top was also traditional, including a stint as a plant manager. The one nod to her gender her predecessor, Dan Akerson, made was that he felt her appointment was "like watching your daughter graduate from college."