“I received common shares paying absolutely no dividends at $32/share and they have since deteriorated,” Richard Wills, a GM investor who’s frustrated with the lack of return on his investment, said at GM’s annual meeting.
“Now you have made billions of dollars. We are putting money into plants; we are funding the pension fund, this is all very good but I frankly doubt that I will ever buy another GM product,” he added.
This pretty much sums up the mood among many GM shareholders.
“You can’t blame Wills or other GM shareholders for being upset. Many bought the stock at or close to the $33 IPO price in 2010. Since then the stock has lost more than a third of its value,” writes CNBC correspondent Phil LeBeau.
Considering the fact that GM shares are down 24 percent, does it come as a surprise that shareholders are irate?
CEO Dan Akerson offered a straightforward assessment of his company: “(The year) 2011 was a good year, but not a great year…Just look at the latest ranking of Fortune 500 companies. GM is number 5 in revenue, but number 20 in profitability.”
Some think it’s a little odd that a company that made $7.6 Billion in has left its shareholders feeling, well, unappreciated.
“Still, this is a company with sizeable problems, most notably a European division that has lost money for 12 straight years and will take time to turnaround,” LeBeau writes.
Indeed, during an interview on CNBC’s “Squawk Box,” the GM CEO said the company is “making progress fixing Europe, but can’t say when the losses will end.”
“So as Akerson and the GM board hold the company’s annual meeting, investors are wondering when GM’s strong profits will eventually translate into a stronger stock price,” LeBeau writes.