While I was in New York last week for the FEI Current Financial Reporting Issues conference, I taped a spot for The Street.com on the November 18th GM IPO. I was against the GM bailout. I’m embarrassed by how the administration has manipulated this “resurrection” of GM.
I also wrote two pieces for Forbes on this subject, here and here. GM is an accident waiting to happen again because they haven’t learned the lessons of their past. They made this IPO happen by polishing the balance sheet and making optimistic projections of revenues. There are too many ongoing weaknesses in both their strategy and their financial infrastructure to pull this off over the long term.
Who else can IPO with several years of adverse opinions on their internal controls over financial reporting and no audited financial statements?
I’m making a prediction: GM will have another big restatement before the 2012 election.
Disclosure: I drive a black 1999 Audi A6 Quattro.
My video was a contrarian respite given all the hype on the IPO and first listing day. A link to it ended up on the front page of The Drudge Report under all the positive GM stories. My friend Andrew says that Drudge is the most influential assignment desk in the world. When Drudge highlights stories, major media feels pressure to tell them, too. I should be getting calls from Fox News any day now.