August 13, 2010
A brief footnote to my post late yesterday:
Yesterday General Motors was set to file documents with the Securities and Exchange Commission in order to sell shares to the public in a widely-expected initial public offering (IPO). During a late-morning conference call with investors CEO Ed Whitacre announced his resignation from the company, effective in two weeks.
Only a week ago Whitacre had an extensive interview with Bloomberg News in which he discussed in detail the company's plan for its IPO. And now he gives his two week notice? Thus GM has to delay its filing to include a new risk factor - a change at the top.
Why do I get the sense that there is less than full disclosure here? Why do I want to buy shares in a recently-bankrupt company that is about to have its 4th CEO in 18 months? What influence has the Federal government (61% owner of GM) had on this process?
Curiouser and curiouser.
GTC
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).