What are the odds that we are going to earn the bailout money back on GM ever?
Consider the math:
GM has received $50.7 billion in taxpayer money ($30.1 billion for DIP etc, $20.6 billion previous capital infusion). When Government Motors comes out of bankruptcy, Uncle Sam will own 60% of it.
At its all time high, GM’s market cap was $56 billion which slid down to ~$7.3 billion prior to chapter 11. (Symbol = GMGMQ.PK)
For the taxpayer to just break even on their investment , the New GM would have to have to reach a market capitalization of $84 billion — almost 150% of its all time peak. That will be tough, even with the new GM’s better capital structure, employee contracts, and much less debt . . .
via What I learned
Top 10 Things the Letters “GM” Stands For (April 2nd, 2009)
Cisco, Travelers into the Dow (June 1st, 2009)