Was the GM IPO a success? (Initial Public Offering)

Today GM went public and it started off with a bang!  The stock opened up at $35.00 a share.  That's a 6.0% move to the upside right out of the gate. The demand for this stock out-stripped the supply as GM was up higher than the initial IPO price of $33.00.  At one point during the day the stock reached  a price of $35.99 a nice solid 9.0% gain for those who had the opportunity to cash in at the top of the trading day.  So was the IPO a success? 

It closed up on the day.  I suppose with the increased price range from last week that the stock was priced just right.  GM came out to do one thing and that was to raise money.  The government stake has been reduced and GM is back in business.  So yes the GM IPO was a success!  I'm used to seeing IPO's where the stock has double digit gains on the first day.  The difference in GM and other IPO's is many investors know what GM is capable of.  GM can make money now that they have cleaned up their act and emerged from bankruptcy.  They are leaner and in a perfect position to take advantage of the upswing in the economy.  With the continued improvement in the job market and the American consumer beginning to spend more money on discretionary items, selling cars is the perfect business to be a part of.

Everyone likes a new car!  With the skepticism of GM emerging from bankruptcy behind them, I believe many investors will want a piece of the pie.  So what if the stock didn't pop up huge today!  The price range shifted towards the upper end and the demand was still there.  As long as the demand continues to be strong the stock will go higher.  I'm a buyer at $32.00 a share as an initial entry for this stock.  The volume will dry up over the next couple of days and the stock should drift close to this price.  If you can't wait, be my guest and by the stock, but remember to buy a small portion initially and increase your position on weakness over a couple of weeks.  GM was and still has the potential to be the great company it once was before it collapsed.  Everyone deserves a second chance and GM has plenty to prove this time around.  Now that GM is off to a fresh start they can now focus on taking back the market share they gave up from all of the turmoil. 

The only negative I have is GM still has to eventually decrease the government's stake in the company.  Being in business with the government is never a good thing.  I guess you can compare it to debt.  Once the government is out of the picture GM can make any decision they like without the input of taxpayers.  GM will prevail!  Once again I'm a buyer at $32.00 a share.  I may be conservative on my entry of this IPO, but if I buy right I will be able to sell right for a profit.  In the end it's all about investing for future earnings and I see plenty of good quarters ahead for GM.

Happy trading!

Clay-