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GM shares lose momentum in post-IPO NYSE return
Reuters

On Friday 19 November 2010, 6:17
By Clare Baldwin and Soyoung Kim

NEW YORK (Reuters) - General Motors Co made a triumphant return to Wall Street less than a year and a half after the government rescued the automaker and forced a massive overhaul but its shares lost momentum after an early bounce.

As some of the automaker's newest models lined up outside of the New York Stock Exchange , GM shares began trading on the floor of the Big Board to the sound of a revving Camaro engine, taking the place of the traditional opening bell.

Close to 220 million shares had traded by the market close, more than triple the amount of trading in Citigroup Inc, the next most actively traded stock. GM shares also traded on the Toronto Stock Exchange .

The start of trading in GM shares is one of the final steps in an initial public offering process negotiated by the Obama administration that raised $20.1 billion in common and preferred shares, making it the biggest IPO in U.S. history.

The IPO caps the first stage of a turnaround that has taken the 102-year-old automaker from near-death via a 2009 bailout, to unlikely Wall Street flotation favourite in 2010.

A successful stock debut may help the Obama administration argue that the controversial $50 billion taxpayer bailout of GM was worthwhile. The White House said U.S. taxpayers were on track to recoup the full investment made by the administration and that it hoped to make substantial progress shedding the government's stake entirely by mid-to-late 2012.

"American taxpayers are now positioned to recover more than my administration invested in GM," President Barack Obama told reporters at the White House on Thursday afternoon.

The government has estimated that an industry failure led by a GM collapse would have cost 1 million jobs, including suppliers, and would have reduced U.S. GDP by 1 percent.

The newly minted shares, which zoomed 9 percent higher shortly after the market opened, trimmed those gains as the day went on even as the broader market rallied, with some speculating that the U.S. government's stake in the automaker -- expected to drop to about 33 percent -- was still making some investors nervous.

Others pointed out that room for gains was limited after the price range and size of the IPO were both increased in the past week.


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All the news stations around here are saying it went up since they started at 33 dollars which is a LIE
 

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What kind of BS headline is that? If the stock goes up a lot, GM would be critisized for underpricing the stock and costing taxpayer money. If it goes down, that's obviously bad for the remaining stock and overall valuation of the company. Inching up a few percent within a week of IPO is the best case scenerio to this point, and they use the headline "GM shares lose momentum" knowing most people who will see the headline, won't read the article. How biased is that?
 
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