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General Motors Company Message Board

  • perfect_market perfect_market Nov 20, 2012 10:56 AM Flag

    would gm try to buy back shares with cash hoard to pay off USA feds?

    i think it was the a/p that mentioned this scenario in a recent article. i did the calculations and it's possible if they offer a buyback at $25.00.

    if share price stayed the same, ie $25.00, and p/e remained at 9.48, they would have to buy back 829,433,962 shares to raise the stock to $53. supposedly the USA gov could sell shares and get bailout money back. that's almost a $21 billion stock by back. they have the cash to pull it off. after USA gov sells, they can reissue stock and get cash back.

    kind of a weird scenario - spending all that cash to payoff bailout loan and make the company look good to consumers.

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