According to a recent AP article, U.S. taxpayers would need to see their shares in GM (GM) (a forced purchase I might add) sold for a price of $95.51 (an increase of ~161 percent from its current level) in order to simply break even.
DETROIT (AP) — General Motors stock would have to sell for $95.51 per share for taxpayers to break even on bailing out the company, according to a government watchdog’s report released Wednesday.
That price is about three times what GM shares are selling for now, even after a 25 percent increase in the price so far this year.
“There’s no question that Treasury, the taxpayers, are going to lose money on the GM investment,” Special Inspector General Christy Romero, author of the July quarterly report to Congress, said in an interview.
Source: Yahoo! Finance
According to the article, “[t]axpayers are still $18.1 billion in the hole on the $49.5 billion bailout” and that:
“There’s no question that Treasury, the taxpayers, are going to lose money on the GM investment,” Special Inspector General Christy Romero, author of the July quarterly report to Congress, said in an interview.
Source: Yahoo! Finance
Lunacy!
Note: Charting data provided courtesy of StockCharts.com.
Disclosure: I own shares of GM, indirectly, through the Vanguard Total Stock Market (VTI) ETF.
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