Treasury Won’t Sell GM Stock, Hopes For Pick-Up

Throwing investment advice of eminent experts such as the LA Times editorial board and former GM CEO Ed Whitacre in the wind, the Treasury will not sell its holdings in GM as recommended, but hold on to the stock. Why? For the same reasons that prompt smaller scale investors to hold on: The Treasury "expects the stock to rise in the future due to a roll-out of several new vehicles," people familiar with Treasury's thinking told Reuters.The chorus that urged the Treasury to unload GM at a $16 billion loss begun a week ago and grew louder by the day. According to a Wall Street Journal report, GM execs want higher salaries and their corporate jets back, which won't happen as long as Uncle Sam is breathing down their necks. Says Reuters: "One major factor analysts cite that could boost GM shares early next year is the planned rollout of highly profitable large trucks. " The new trucks generate a profit of $12,000 to $14,000 per vehicle according to analysts. While the Volt won't save the planet just yet, gas-gobbling BOF Silverados might save the Treasury from a major loss. from The Truth About Cars http://www.thetruthaboutcars.com

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