Baseball, Hot Dogs, Apple Pie & Chevrolet! The
much-anticipated IPO of General Motors (
) has finally arrived and Wall Street is rejoicing, judging by the
early stock price reaction. I keep scratching my head about the
company though, wondering what has really changed for the company
from a business standpoint. It seems tough to justify its current
$50 billion valuation.
New GM CEO Dan Akerson said this was the right time for the
company to go public again, but stopped short of promising that
taxpayers would be paid back with future stock sales. I realize it
is impossible to guarantee any GM payback, but you think he could
have waited till after today's party to take some air out of what
could be the reality of the situation. As I said yesterday, I hope
that the company's job picture stabilizes first and foremost,
because that is what the country needs now. After all the glowing
attention the company's IPO has received, you can bet the big media
players will certainly be glad to have GM's advertising dollars
flowing back in.
Elsewhere, commodity stocks are having their bounce after the
recent mini-correction. It will be interesting to see if the
commodity playes we watch are in the process of making a lower
high, or if this was simply a minor bump in the road on the way to
making further highs. You probably know by now that I am not a big
fan of commodity-led rallies, especially when we all know higher
commodity prices can come back to bite consumers in their everyday
Today's triple-digit rally was led by various companies,
including Union Pacific (
), Freeport McMoran (
), Coach (
), and MasterCard (
). Limited Brands (
) and Buckle (
) both reported solid earnings and said they were paying out
special one-time cash dividends. If you are into the dividend
capture style of investing, you may want to keep these two names on
your radar. There will certainly be some short-term attention paid
to both companies. Long-term investors need to assess the
possibility of how the stocks will trade once the ex-dividend dates
are hit. Remember, you need to own the stock prior to the
ex-dividend date to be able to receive the dividend payout, and the
stock price will be negatively adjusted on the ex-dividend date to
reflect payment of the dividend.
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"Learn to Be Rich"
articles as I'd like everyone to gain the money knowledge they need
to navigate through other parts of their financial life outside of
investing. And of course, check our our currently "Recommended"
names on our industry-leading
"Best Dividend Stocks"
Thanks for reading everybody. See you tomorrow!
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