Irate GM Shareholders Say They Aren’t Seeing Any Return on Their Investment
- Posted on June 12, 2012 at 6:45pm by
Becket Adams
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“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?
GM’s year-to-date stock quote
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.
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Comments (162)
lukerw
Posted on June 12, 2012 at 7:43pmSUCKer! Yeh… get in bed with Socialists & Unionists… and wonder where did that STD come from!
Report Post »ubwrong4it
Posted on June 12, 2012 at 7:58pmhad to link to this comment to stay on front page
Report Post »GM will probably spin of the north American division Europe and ever thing else .They are fully committed to China they are in partnership with several communist controlled companies. and are planning to move all design and engineering to china .so if GM stays at all it will just be assembling Chinese parts.. GM has already given away all trade secrets to the Chinese to be able to do business there. Intellectual property that was funded by US tax payers
mensa141
Posted on June 12, 2012 at 8:40pmInvesting in GM the second time around is like investing in KMart after they went backrupt. How many times do you have to be told not to do stupid things? Either one is almost as bad as investing in FaceBook. If you aren’t better than this put your money under a mattress. It’ll be a lot safer.
Report Post »db321
Posted on June 12, 2012 at 8:44pmDang it Lu8kerW – I wanted to say that.
Wait until the Welfare and Social Security recipients find out what Obama has waiting for them.
The Stock Holders are paying for the Unions 95% full salary at retirement at the age of 50. I would not walk away from GM Stock – I would RRRUUUUUNNNNN!
Report Post »lani59
Posted on June 12, 2012 at 8:46pmLets see, a company performed so badly that it needed a Govt bailout to continue being in business. So now you think, investing in GM must be a good idea at $32 a share because they must have learned their lesson, right? But what has happened, the press tells you they’re raking in billions and the loans are paid off (not even close), so why isn’t the stock sky rocketing? It‘s because the savy investor knows it’s only time before GM goes bust again because the Unions will crush them again and at the end of the day, everybody knows GM produces a crappy product. I bet these same people bought Facebook stock, BAHAHAHAHA
Report Post »Jedrin
Posted on June 12, 2012 at 8:46pmTwelve years of Losses???????????? When is it time to cut the loses. Or is that more funneling money to Europe via auto industry jobs. What is to fix, Europe is in a depression, “12 straight years and will take time to turnaround” Wow????? There is no hope, of a turn around in all this.
Report Post »Sirfoldallot
Posted on June 12, 2012 at 9:22pmGM = Goverment Motors , lol, who in the H*** would invest after they screwed over the other investers ? When we go back 2 Capital ways , Invest. Till then pray, wait & see, & do all u can 4 good .
Report Post »booger71
Posted on June 12, 2012 at 9:24pmYou were not meant to get a return, Barry bailed out GM to steal 30% of the company and give to the UAW
Report Post »PATTY HENRY
Posted on June 12, 2012 at 9:32pmSurprise, Surprise! Gee whiz and Duh. Y’think?
The Dems are going to try their best, their very best, to convince ALL AMERICANS that the current President INHERITED a mess. Guess what??!!! THE MESS began when Nancy Pelosi took over as Speaker of the House; Harry Reid took over the Senate and BARNEY FRANK forced American Banks to make SUB-PRIME loans which RUINED the Capitalism Market. No one can compete with the US GOVT. that’s what has happened! When People who could not afford homes got sold homes and defaulted, it hurt all of us. SO REMEMBER from 2006 onward we’ve had DEM control over the purse strings. Do not let them get away with saying “inherited mess”. THEY MADE IT A MESS.
Report Post »How’d you like losing 40% of your worth in the 3 years that sawed-off sob twerp has been messing with our country. THROW THE BUM OUT!! 40%…our entire retirement, our Independence and damnit …it did it ON PURPOSE…I know it YOU know it. Pay attention and stand up every chance you get!
7of 9
Posted on June 12, 2012 at 9:43pmI could ot have said it better. thank you
Report Post »marhee9
Posted on June 12, 2012 at 10:12pmExactly…..what did this fool think he was buying? Anyone who would invest in GM after the way they treated the last investors is an absolute fool. GM is now owned by the unions, who thinks they care about anything but their own interests? Heard of the failed recall election in Wisconsin???
Report Post »http://www.youtube.com/watch?v=-OPf1dK-qlE
MAMMY_NUNN
Posted on June 13, 2012 at 12:51amLeaving the fox to guard the hen house how stupid could you be ?
Report Post »GETLIFE
Posted on June 13, 2012 at 4:46amYeah, no kidding! So cry me a river and boo hoo hoo!
Report Post »They decided to redistribute elsewhere– what can you do…. what CAN you do…?
SocialistSlayer
Posted on June 13, 2012 at 7:55amWhat kind of moron would have bought shares in GM after they had gone bankrupt? They all deserve what they are getting – a fool and his money are soon parted. ( I bet they all on the Volts also)
Report Post »Zipit
Posted on June 13, 2012 at 8:13amLUKERW! Perfectly put! This company will never be profitable as long as it has ties to the federal government, and is held to the ground by the boot of the union. I love all my Ford’s. Hard to see going back to GM unless things change.
Report Post »VoteBushIn12
Posted on June 13, 2012 at 11:15amI hate to point out the obvious, but the reason they “got into bed with socialists” was because they were about to go bankrupt. You know bankruptcy, that thing that happens when your worth goes into the negative and you can’t pay your bills.
So what you REALLY meant to say is “since you got into bed with socialists you were able to survive three more years” – a blessing from the perspective of any terminally ill patient. Which, I might add, is a fair analogy since we all know “corporations are people, my friend” [Mitt Romney]
The “free” market will never be actually free. It will forever be dictated by greed and corruption from the wealthiest among us. The people pulling for free market hardest are the people who have seen the most benefit from it – the millionaire and billionaire Koch brothers who know that their manipulation of the American people depends upon the facade of freedom our exclusive capitalist greed has created. A mixture of government control is the only hope to regulate the otherwise tyrannical financial oppressors we call “big business”.
Report Post »Zipit
Posted on June 13, 2012 at 1:45pm@VOTEBUSHIN12
Report Post »Truly one of the more ignorant posts I’ve ever read on The Blaze! Or anywhere else for that matter! You have to know absolutely nothing, about a whole lot of things, to even have the guts to show the world how misinformed and irrelevant your thoughts are. Really!
armyofnibiru
Posted on June 13, 2012 at 2:41pmsocial slayer; they weren’t allowed to go bankrupt.it was grand theft auto on a company scale.it was contract brakeing and total dissregard of law by law enforcement on a grand scale.it was high crimes and misdermenors by potus and congress.thats why no one will be impeached.but you and I shoot a bunch of squirles crapping and ******* on our rafters ,will be fined up to $1200 and spend 6 months in jail.and romney will not investigate or prosicute the previous adminastration;welcome to the NWO OF USA. or USSA.
Report Post »nobull14
Posted on June 12, 2012 at 7:42pmNever put money in government motors it was doomed to fail when the Government got in bed with the car company . Suggest you buy Ford once the unions get broke up. Ford stock will go through the roof in value !!!!
Report Post »CatB
Posted on June 12, 2012 at 8:17pmWe ARE stockholders … the American taxpayers .. are the BIGGEST LOSERS!
Never will I buy another GM vehicle .. I have had them since I started driving (my first was a used Corvair) .. My LAST was purchased in 2004 GMC Envoy .. almost 100,000 miles and I will drive until the wheels fall off (btw I have a friend who works for GM and have gotten the GM employee and friends discounts) Then I will buy anything but a GM or Chrysler.
Report Post »f2345ranky
Posted on June 12, 2012 at 7:39pmYou had to be a real idiot to have invested in GM. I’d have to question the integrity of the board of directors and ask where theit loyalty stands. Unions or Shareholders? 24% drop in stock price with
Report Post »$7.6 billion in profit. My 12 yr old knows the answer.
Jenny Lind
Posted on June 12, 2012 at 9:48pmAlot of people like me got it through work (my husband worked for GM), Still have a tiny bit they gave me after the mess.
Report Post »cykonas
Posted on June 13, 2012 at 6:38amNeither the stockholders or the unions. Just like the politicians they believe in stuffing their own pockets. In the politicians cases it’s called graft (if we’re still allowed to call it that) and in the GM board members case it’s call bonus and incentives. In the end it’s all the same.
Report Post »Oldtruth
Posted on June 12, 2012 at 7:37pmSo this guy invested in a bankrupt company whose majority shareholders are, UAW and the federal government. He wants to know why he hasn’t seen a return on his investment…..LMAO!
Report Post »oddball130
Posted on June 12, 2012 at 7:51pmExactly!!! You want to screw something up, let the feds get ahold of it. I’ve always bought GM, but never again since the bailout.
Report Post »Sirfoldallot
Posted on June 12, 2012 at 9:26pmHe just got out of the big house, give the guy a break.
Report Post »bjornskis
Posted on June 12, 2012 at 7:37pmLove Gm share holders
Heck I was a Bond holder and Oblumbler stole my money
Report Post »drbage
Posted on June 12, 2012 at 7:47pmI had 45 years’ worth of GM stock and lost it all to the union when Obama signed the bailout. What a lot of people forget that their taxes are helping to pay off the billions invested in the buyout so it’s lose-lose for the taxpayers and win-win for the union.
Report Post »Rajabear1
Posted on June 13, 2012 at 12:17amThe phrase unclean hands keeps coming to mind. These investors KNEW the real investors had been pushed out-illegally-by the unions and a corrupt gov takeover. Essentially nationalizing it, and you’re confused and ticked off about your investment??? First of all, it was stolen, you get what you deserve.
Report Post »Second of all-how’s the post office running? That should be a big hint as to how GM would run after this brilliant scheme…and it was one hell of a scheme.
I remember vividly 2 specific incidents before BO took office. 1) auto bailouts and 2) bank bailouts. Sat there watching the TV with tears running down my face knowing it was wrong, un-American, and the beginning of the end of freedom.
I had no real comprehension of the economy at that time, but I KNEW it was a death nail. How come the investors didn’t? I assume they are brighter than me…
taxpro4u03
Posted on June 12, 2012 at 7:33pmP.T. Barnum was correct…. When one is plugged into a Money-based economic system — the overall objective at ALL levels is to _____________. (Prosperity means different things to different people) — The knife cuts BOTH ways: — It is a universal reality — equilibrium in a natural world will prevail despite manipulation of crony capitalists. Yin-Yang. Perhaps the species will long prevail — but I doubt it :-)
Report Post »DetritusScreener
Posted on June 12, 2012 at 7:30pmObama screwed that up too! Obama is the worst president in U.S. history! Everything Obama touches turns to shlt! All his lies are bubbling up and the shlt is being exposed for what he is.
Report Post »macpappy
Posted on June 12, 2012 at 7:23pmGM is doomed to fail, for this reason:
Report Post »I have owned a Chevy Suburban, a new one every three years, since 1968. I have always been satisfied with the product. Now that it is owned by the Unions, I will buy a Ford, or other now.
Bracsim
Posted on June 12, 2012 at 7:29pmgo FORD, I have been a ford guy all my life, for me there is no better car than ford.
Report Post »Hollywood
Posted on June 12, 2012 at 7:34pmTHOSE who bought shares in 2010, are IDIOTS!, They expect profitability from a company who allowed their former shareholders to get $crewed by the GUBAMINT, then expect, after the GUB getting involved, to actually make $?? What bloody fools. How much does GM still owe to the GUB[Taxpayers?] Get REAL! Buy into GREEN companies, as long as the taxpayer pays for it,IF you follow Prog policies! I ,for one, would NEVER do it, no matter HOW profitable it may be! Long term, ethics/morals/truth mean more than $$$$$$.
Report Post »kaydeebeau
Posted on June 12, 2012 at 7:56pmI am the same way. My dad, grandfather, uncles cousins etc worked for GM (Frigidaire). I always drove a Chevy. In 2009 I decided it was time to retire my 1991 Camaro I had since it rolled of the factory floor. I wanted another Camaro, but about that time, the bail out happened – the Camaro I was going to order before the bailout – increased in price by almost $10,000 – so I got a Tiburon. And until the un-holy alliance between GM , the gov’t and Unions is over, I will never trust another GM built auto
Report Post »RightThinking1
Posted on June 12, 2012 at 9:29pm@KAYDEEBEAU
FWIW, our new-in-1962 (pink!) Frigidaire (w/GM logo) range top is still working fine! My wife has bothered me about a new one for years, but I won’t buy another so as this is working.
Report Post »Rajabear1
Posted on June 13, 2012 at 12:34amMy kids and their extended families are BIG time Chevy folks, but my kids will no longer buy any new models, only old school. They still won’t make ANY commitment to by Ford–AT ALL! Although they respect Ford for not taking a bail out…baby steps…
Report Post »essence428
Posted on June 12, 2012 at 7:23pmAmericans were angry back when GM took the bailout and said they wouldn’t buy GM products anymore…the American people meant it…but Obama must be loving this….those nasty rich investors aren’t making any money…but on the other hand, he can‘t tax the profits that they aren’t making either…and its another way to bring America down…nothing makes any sense anymore! He’s turned our America upside down! OMG 2012
Report Post »Al J Zira
Posted on June 12, 2012 at 7:18pmHere’s an idea! Close down the money losing European division! Obviously, they don’t want your crap over there so do what companies do and close down that which loses money.
Report Post »Bracsim
Posted on June 12, 2012 at 7:31pmdont be soo sure, ford is a big seller in europe. ford is doing really well
Report Post »broker0101
Posted on June 12, 2012 at 7:18pmAnyone foolish enough to still hold GM stock after the fleecing the original stock holders (and, even more so, the bond holders) took at the hands of the Federal Government deserves EXACTLY what he gets this time around. A fool and his money were lucky to get together in the first place.
Report Post »TruthSpeaker
Posted on June 12, 2012 at 7:40pmexactly. my very first thought.too
Report Post »dblaess
Posted on June 12, 2012 at 7:42pmThis is only one time I agree with you
Report Post »Sirfoldallot
Posted on June 12, 2012 at 9:31pmGM was the 1st one 2 get a bail out from the goverment back when they were a horse & buggy out fit. They wanted 2 re tool to compet with the auto mobile, not there 1st bail out.
Report Post »MAMMY_NUNN
Posted on June 13, 2012 at 1:04amThey got a bailout in the 80′s also by a Government contract to the military to replace vehicles with the 350 powered diesel trucks which proved to be worthless for towing and mountain climbing.
Report Post »RAGEAGAINSTTHEMACHINE
Posted on June 12, 2012 at 7:12pmThe few, the pissed, the taxpayers
Report Post »thesource
Posted on June 12, 2012 at 7:06pmIt seems that Ford has a better P.R. machine than G.M.. Ford took $5.9 billion in government loans in 2009. Hmm better not buy a Ford either. Google it.
Report Post »Bracsim
Posted on June 12, 2012 at 7:37pmford paid back the money, on the second bailout ford dod not took a single penny, GM and Chrysler did, so far Ford is the only american company standing on it own and we all should support ford, at least i do, I always buy american, every time I can, the rice crap dont work with me.
Report Post »MAMMY_NUNN
Posted on June 13, 2012 at 1:09amIf American Motors was still in business I would buy one of theirs loved the AMC cars.
Report Post »JUSTANOTHEROPINION
Posted on June 12, 2012 at 7:02pmThey obviously thought the government was the answer for GM and thought they would make a mint. This is what they get for investing in the government instead of people.
Report Post »progressiveslayer
Posted on June 12, 2012 at 7:00pmGovernment motors has been tried in Yugoslavia and and now we get to see the wonders of car by committee here in the U.S
Report Post »Gonzo
Posted on June 13, 2012 at 10:53amDid the shareholders not get the memo? The unions are getting the return on the shareholder’s investment.
Report Post »mr166
Posted on June 12, 2012 at 6:57pmWhat a surprise!!! The government stole the company from the bondholders in order to support the unions. Never by a company from a thief. Facebook is another example of this.
Report Post »MAULEMALL
Posted on June 12, 2012 at 6:56pmWait…You mean that the 40% that was handed to the unions aren’t makeing any money??
Report Post »Darmok and Jalad at Tanagra
Posted on June 12, 2012 at 8:02pmNo, the Unions got their money, they cashed out when the Shares went public after the bailout, the Govt held onto its 60% which is now worth 50% less than what the unions got for their shares. But the shareholders that were left aren’t getting a good return on selling Volts at a loss, or getting rid of their best selling car, The Saturn, because it was in a non-union state and the UAW demanded they close that plant (part of the bailout), or the fact that they are still paying workers that don’t have a job, but get their salary still.
I am shocked and surprised that shareholders aren’t getting a return. I am still hoping my Tyco and Enron stocks come back up, still hoping. But then again, my other hand is getting really full of poo.
Report Post »wianno94
Posted on June 12, 2012 at 6:56pmNo other government run program has ever made a profit or paid a dividend. Why would you expect to make money on GM stock?
Report Post »Jenny Lind
Posted on June 12, 2012 at 9:52pmHey, see my story page three-I still have 100.00 from the bankruptcy and I earned 4.13 on it last year. Too much fun to cash the check.
Report Post »barber2
Posted on June 12, 2012 at 6:55pmThat is just what the Left wants: punish the rich and “redistribute” their money ! And help the unions ! Obama Democrats must be so pleased .
Report Post »Larry E
Posted on June 12, 2012 at 6:55pmWatched a Youtube video http://www.youtube.com/watch_popup?v=Lvl5Gan69Wo where the president of GM is talking about how they’re turning China into their new center of research and production. The dividends are likely going to big-shots in the Chinese Communist Party. I’d never buy a Government Motors vehicle.
Report Post »RAGEAGAINSTTHEMACHINE
Posted on June 12, 2012 at 7:16pmYou took my comment, well stated! How nice, take our tax money to pay off the union boses and then move to China…where are all those jobs now Trumpka/Obummer?
Report Post »Grace1798
Posted on June 12, 2012 at 6:55pmBut…..BUT……Obama said everything is FINE!
Report Post »Bracsim
Posted on June 12, 2012 at 7:39pmeverything is fine, I guess he (Mr O.) was talking about his banking account.
Report Post »AzThunder
Posted on June 12, 2012 at 6:55pmoh well… crappy company and crappy automobiles
Report Post »Sirfoldallot
Posted on June 12, 2012 at 9:56pmlol, u think, lol.
Report Post »biffo
Posted on June 12, 2012 at 6:52pmYou dumbass obama voters get what you deserve. Obama gave your chevy to the unions. Live with it and stfu. And buy a Ford.
Report Post »Sirfoldallot
Posted on June 12, 2012 at 9:34pmFord rules , Ford = Fast on race day. Ask John Force & his daughters.
Report Post »Jenny Lind
Posted on June 12, 2012 at 9:54pmOh please, here in Ohio I keep hearing FORD, found on road dead.
Report Post »GaryInTheMiddle
Posted on June 12, 2012 at 6:50pmI’m shocked. (oo}. Buy a Ford.
Report Post »wolverine
Posted on June 12, 2012 at 6:48pmWhat did they expect from a socialist experiment
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