Ban lifted: GM execs can sell their shares
Two years ago when General Motors embarked on its latest turnaround plan, the company instated a two-year stock trade ban on its top 20 executives. The group included well-known names such as Chief Executive Rick Wagoner, and Vice Chairman of Global Product Development Bob Lutz. Until today, none of them were allowed to buy or sell General Motors stock. At the time of this posting, none of the them had filed plans with the SEC to purchase or sell their holdings, but they have until May 31 to do so.Sarah Gilbert, editor at Blogging Stocks tells us that the unusual ban was probably a way to keep investors from implying too much about the state of the company from inside trades. It was a move, Gilbert says, that went hand-in-hand with GM's decision to stop issuing forecasts during the turnaround period. She says lifting the ban could indicate GM is nearing completion of its turnaround plan.
GM shares closed at 29.65 Wednesday afternoon, down 8 cents.
[Source: CNN Money]
Reader Comments (Page 1 of 1)
Big Mike Wood 8:55AM (5/10/2007)
It's too bad Autoblog can't set this up so that any posts that include random links to DA spam sites get automatically deleted. If you're listening, I'd be happy to volunteer my time to review the comments sections here and manually delete this garbage. Have your people call my people.
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Barney 9:14AM (5/10/2007)
I understand GMs reasons for the ban but don't concur. The ban had only put shareholders on edge. I am assuming the ban was to prevent an indication of in house planning and the selling of stocks would have been scrutinized closely by outsiders.
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bmoredlj 9:21AM (5/10/2007)
Personally, if I already had loads of GM stock, I'd hold onto it as their products get progressively less "crappy" in the next couple years
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Steve 9:28AM (5/10/2007)
Or it could mean that the fat cats are going to sell while they can before GM files chap. 11. Remember that the big UAW contract comes up for negotiation this summer. Don’t expect the UAW to budge while the execs are getting bonuses.
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Robert Farago 12:07PM (5/10/2007)
I'm with Steve: this move indicates that GM execs are getting theirs while the getting's good.
After the UAW's contact delivers... nothing much, after the cash burn accelrates, GM's stock will tank.
My full take: http://www.thetruthaboutcars.com/?p=3698
BTW: "Inadvertent insider trading" makes me laugh.
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Be Oh Be 1:20PM (5/10/2007)
Robert (#6)
Its obvious you have some weird personal vendetta against GM. Why? I think tons of GM fans (and critics too) want to know why? Did you once work there and get fired? Did a GM PR manager really piss you off one day and threaten you or something? Seriously? Your Death Watch rants are interesting reads, but they have a very pessimistic, self fulfilling slant to them, as if you really want to see GM go down in flames. There is never one iota of positive news (in ref. to fuel cell technology, upcoming good products, etc, etc..) that you could at least mention as a somewhat positive counterpoint. Hey, it's your commentary, but it really blows honestly. It's like you're capitalizing on the trend to bash the Big 3 right now.
GM is a GIGANTIC global company (that's probably super inflating their accounting costs by the way). - you act as if they generate absolutely no revenue. Don't you think that some of their $9Bln they're going to spend on R&D comes from the sales on their cars globally, right now?
I'll totally eat my shoe - and post it on YouTube, if GM declares total and complete Ch.11 bankruptcy by 2010. It ain't gonna happen! Not the 3rd largest company in the United States.
Times are (somewhat) tough for the auto industry, and yes, the unions are a big problem, I'll give you that. But GM will just start building more compacts in places like China, Korea and India before they totally close up shop. You can count on that.
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Big Mike Wood 2:27PM (5/10/2007)
Anxiously awaiting GM Deathwatch #1826...
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Be Oh Be 2:40PM (5/10/2007)
Someone should start a "GM Deathwatch Deathwatch". hehehehehe.
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Barney 5:58PM (5/10/2007)
I conclude by the various posts that some either didn't read the article or didn't understand it.
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Campisi 2:37AM (5/11/2007)
Barney,
This in some way surprises you?
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Be Oh Be 11:07AM (5/13/2007)
#10
yea, I read the article, and my conclusion is that it's absolutely meaningless! hehehehe. Means absolutely jack shit in the overall big scheme of things.
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