Six GM executives sell more than 200,000 shares

DETROIT (AP) -- Six General Motors Corp. executives recently sold more than 200,000 shares of the automaker as GM moves toward issuing new equity to give large stakes to the U.S. government and a United Auto Workers retiree health care trust fund.

Four group vice presidents and two vice chairmen sold nearly 205,000 shares Friday and Monday at prices ranging from $1.45 to $1.61 per share. GM shares closed Monday down 17 cents at $1.44.

Spokeswoman Julie Gibson says the sales don't show a lack of faith in the company. She says GM has disclosed publicly that shareholders run the risk of significant dilution or possibly losing their investments in a potential bankruptcy filing.

finance.yahoo.com...

Can you say insider trading? It looks like the men driving the ship are running for the life boats. Good luck to you if you own GM stock. Its too bad, I really like the new Camaro.

Originally posted by finemanm

Can you say insider trading? It looks like the men driving the ship are running for the life boats. Good luck to you if you own GM stock. Its too bad, I really like the new Camaro.

Who knows? The way things are going you're probably going to be able to get one for free, instead of a tax refund. Or more probably its going to be sold of to some overseas interest. Soon NOTHING will be made in the US and we will all be slaves to cheap foreign goods, if they will still sell to us.

reply to post by finemanm


Wow.

What ever happened to the captain going down with the ship. I guess the real world is a little different, here there is no band playing as the Titanic sinks.

Just to let you know, if you have shares in GM, please sell them now, before the markets open.

You know how it goes.

Yea I always thought there is this small chance that GM may get government aid and sky rocket which stopped me from shorting.

But this pretty much seals the deal that GM is doomed.

Take the loss, cash out.

Well, from the news of them outsourcing and the continously failing of gov't aided, corporations, there is no hope.

With all the money in the world you can't resurrect a dead horse. Maybe briefly you can resurect the organs, but thats a far off deal.

Sell now, or face certain loss of all cash in the stock, hoping even in that that the dollar bill you get will be worth anything.

I hate to say this I really do because people will lose their jobs, but part of me will be absolutely stoked if Holden goes under. I am sick of these big hideous monstrosities all over AUS & NZ roads. Not to mention the "super blokes" who drive them.

[edit on 12-5-2009 by contemplator]

reply to post by finemanm



there's also the rumor that GM had begun the paperwork to do a reverse split, of 1 for 100 shares.

that does not mean the company is sure to fold, especially with the taxpayers being the bailer-outers of last resort...
the elite executives did their math & concluded that selling 200k at ~ .01 cent profit was better than selling 20k at ~.08 cents profit...

if the near future GM would even have that much market gain
(an .08 cent move) after issuing millions of shares to the gov't
and relinquishing the monetary pursestrings of the corps. health plan to the Union.

DETROIT (Reuters) – General Motors Corp (GM.N) stock plunged more than 22 percent to a 76-year low on Tuesday, a day after GM's top executives dumped their shares as the automaker heads toward a bankruptcy or a restructuring that would all but wipe out existing shareholders.

Six GM executives, led by former GM vice chairman and product chief Bob Lutz, disclosed on Monday that they sold almost $315,000 in stock and liquidated their remaining direct holdings in the automaker.

The automaker's shares were down 22 percent, or 31 cents, at $1.13 on the New York Stock Exchange Tuesday. The stock had fallen to as low as $1.09 earlier, a price not seen since 1933 in the midst of the Great Depression.

news.yahoo.com...

Isn't that nice, they dump their shares and get 22% more than non-insiders got today. I love insider trading.

Why don't they get indicted? Who knows, maybe they will.

[edit on 12-5-2009 by finemanm]

reply to post by finemanm


No surprise.

Just makes me sick.

Only GM managment would be dumb enough to wait for this long. It has been pretty obvious that GM stock is worthless for many months now.

I see the roaches are scattering. That's happening in nearly every troubled sector. The insider simply cannot afford to absorb more losses when the intent was to get rich, or richer fast. Of course, I can hardly blame them, I'd cash out too if the government was constantly threatening me, and if government actions were further driving down stocks. Then I'd wait for my government issued pink slip.

I really don't have a problem with insiders selling their stock, as long as it is reported in the proper way. They were fools to hold on to it this long anyway unless they had to. IMHO GM stock is going to zero once BK is filed. The true criminality in the GM situation is what is going to happen to GM bondholders.

In a normal Chapter 11 BK the stockholders are wiped out (as they should be) while the bondholders become the shareholders in the restructured company. That is not going to happen in this case it appears. The stockholders are going to be wiped out for sure, but the bondholders (who include both institutions (like non-UAW pensions, public pensions, mutual funds, and hedge funds) and individuals) will only end up owning like 10% of the restructured company with the government holding around 50% and get this, the UAW holding 39% of the restructured company. This is the ultimate admin payback to the UAW. Here is the source.

The bondholders are protesting the terms of the offer under which they would swap their $27bn claim for a 10 per cent equity stake, while the union, with a $10bn claim, would end up with 39 per cent.

From Financial Times

This is dangerous for many reasons. First and foremost it destroys the concepts of contract law and capital structure. Who would loan any company money when the government can come in and do whatever the hell they want while rewarding political allies and screwing creditors. The holders of those bonds bought those bonds with the understanding that if GM went BK they would have first dibs on the liquidated assets of the company. Second the remaining company will be 89% owned by the government and an allied political entity. The new entity will be competing against companies who are not owned and financed by the .gov/UAW and the opportunities to stifle competition are great. Unlike Chrysler, who I believe upwards of 90% of their debt was held by institutions, somewhere around 20% of GM debt is held by individuals. So this is going to hit retirement accounts and college funds of regular people.

Anyway I've said to hell with GM and Chrysler (and I currently have one of each in my yard, both bought new). As long as Ford stays off the .gov teat I will consider them when it comes time to buy another car otherwise it's going to be a Hyundai/Kia which actually employ people near me or a high quality Japanese model.

[edit on 13-5-2009 by jefwane]

Insider trading??? GM announced PUBLICLY a week ago that they are gonna issue 60 billion more shares!!! EVeryone should be selling.

We just got word from our CAW National office that GM will file for bankruptcy protection in the US and for protection under the Companies' Creditors Arrangement Act in Canada on Friday. The vortex will suck down with it approximately half of North America's supply base which will then pull Ford under.

Batten down the hatches, folks. The ride's gonna get bumpy.