GM’s IPO: A Government Success Story

Add to Google Published by

Was it coincidence or was a conscious effort made to work with planetary energies so GM’s initial public offering would recoup as much money for the government as possible?

In order to increase the chances of attracting enough investors willing to pay up, it’s essential that the energies of Venus (money) and Jupiter (abundance) are strong. The return of General Motors as a public company trading under its old ticker symbol GM occurred on Thursday (the day of the week ruled by Jupiter), November 18 when Venus and Jupiter’s energies were strong as both planets shifted from retrograde to forward motion.(1) As Venus and Jupiter appeared stationary in the sky, the size and valuation of GM’s IPO increased from $26 to $29 before pricing at $33 a share.(2) At $18.1 billion, GM’s IPO was the second largest in U.S. history after Visa’s (V) $19.65 billion 2008 offering.

Retrograde planets bring a return of past matters into focus for reevaluation; it is an opportunity for what is not working as it should to get resolved. As the retrograde planets shift into forward motion again, attention is drawn comparing present conditions and future potentials to past circumstances.

Both planets turning direct (Venus in Libra) and (Jupiter in Pisces) in the signs they are at “home” in strengthened their energies and increased the positive PR that investors and the public would view GM’s resurrection as a success story. Scorpio and its planetary ruler Pluto represent the cycle of decay and death that GM has went through in order to engineer its rebirth.

The Sun in Scorpio squaring Neptune in Aquarius helped to increase investors’ confidence and motivation to purchase shares. The Sun symbolizes leaders and Neptune adds an element of “Hollywood” style glamour that optimistic Jupiter in Neptune-ruled Pisces expanded on while Venus poured on the charm. Venus exactly conjoined CEO Dan Akerson’s natal Sun in Libra as he drove up to a line of GM vehicles on display in front of the New York Stock Exchange in a Camaro convertible . Its revved up engine was heard as Akerson rang the opening bell. With the Moon (sentiment) in Mars-ruled Aries, the sound was meant to whet investors’ appetites so they would quickly hit the “buy” button. The importance of fulfilling the emotional instincts of the Moon in Aries by showcasing a muscle car even exceeded the longer term influence of Jupiter conjoining the electrical energy of Uranus in Pisces which would have favored Akerson arriving in a Chevy Volt and its quiet engine to open the trading day. (Akerson told reporters he drives a Volt.)

Although the influence of Jupiter conjoining Uranus in GM’s stock chart tends to be a beneficial influence, this alignment makes the stock highly susceptible to large price moves that propel the stock higher or lower than expected. A Mercury/Mars conjunction in Jupiter-ruled Sagittarius reinforces the theme that investors will be quick to overreact to news affecting the company. The strong Jupiter/Uranus influence can indicate that GM’s stock is more suited for short term trading.

The Sun squaring Neptune and trine to Jupiter and Uranus boosts the stock’s chances of being perceived as a growth stock. Jupiter represents what is foreign; Jupiter and Uranus in Pisces along with the Sun square Neptune reflect that GM’s stock could be considered as a way to speculate in the frothy world of emerging markets since GM currently sells more vehicles in China than it does here at home.

GM officially began trading at 9:36 AM. The stock opened up $2 from its IPO price to $35.00 and climbed to intraday high of $35.99 in the first few minutes of trading before falling back to close at $34.19. GM shares closed up 7 cents to $34.26 the following day.

GM could have had a much greater gain on its opening day than 3.6% if the IPO price had been kept lower. But with Saturn in Venus-ruled Libra as the ruler of its stock chart and Venus in Libra conjoining the sector of the chart representing its reputation, GM’s fortunes are tightly tied to its "partnerships." Venus in Libra describes the purpose of GM’s IPO is to raise money to repay its partners. As GM’s largest shareholder, it is in the beneficial interest of the U.S. government to ensure the IPO is as profitable as possible. If the IPO debuted for less than $33 a share, the Obama Administration would have been accused of leaving too much on the table for Wall Street.

Venus in Libra stationing direct exactly squared the USA’s natal Pluto in Capricorn located in the sector of the USA chart representing the economy and the nation’s wealth. The often quoted expression emanating from the 1950s (“as the nation goes, so does GM”), is reinforced by the GM incorporation chart’s Venus in Cancer conjoining the USA Sun. These influences reflect that both GM and the Administration’s reputation are enhanced as GM repays the government.

Saturn ruling GM’s stock chart with Pluto in Saturn-ruled Capricorn conjoining the chart’s Capricorn Ascendant presents an initial impression of a company mired in the debt owed to the U.S. as well as the governments of Canada and Ontario. Additionally, GM has obligations to its other “partners” - a union pension and retiree healthcare trust. None of the proceeds raised from the IPO went to GM. $11.8 billion went to the U.S. government from the sale of 358 million shares, reducing the government’s stake in GM from 60.8% to 37%. (If the overallotment shares are sold, the Treasury’s take would rise to $13.6 billion and its stake reduced to 33.3%.)

Capricorn and Saturn represent the government. With Saturn as the ruler of the stock chart and Pluto conjoining the chart’s Ascendant,(3) it’s time for some history regarding the relationship between GM and the government. The Bush Administration gave GM $13.4 billion. With no strings attached, the money allowed GM to continue business as usual. Saturn requires accountability for one’s actions. The additional $36.1 billion the Obama Administration approved came with conditions. The Administration forced GM to restructure (Saturn) in exchange for a quick passage through bankruptcy (Pluto). Whether referring to an individual or a company when Pluto is involved, you don’t emerge from its underground domain in the same state as when you entered it. By choice or by force, you will be transformed.

Like a snake shedding its skin,(4) as part of its restructuring GM shed plants, dealerships, and four brands (Saturn, Pontiac, Hummer, Saab). The Obama Administration had already forced CEO Rick Wagoner to resign earlier in 2009. By the end of that year, Fritz Henderson was replaced by Chairman Ed Whitacre who relinquished his position as CEO to Dan Akerson on September 1, 2010. Akerson’s progressed(5) Sun in Capricorn exactly conjoins the GM stock chart Ascendant and his progressed Mercury in Capricorn conjoins the GM founding chart’s progressed Sun. Together with his natal Sun and Mercury conjoined in Libra, the former Managing Director of the Carlyle Group is the “spokesman” who must balance the competing yet mutual interests that GM repay its debts and emerge as an independent and viable car company.

After posting a $1.2 billion loss in the third quarter of 2009, GM had repaid $9.5 billion to the Treasury and earned a $2 billion profit in the third quarter of 2010 which marked its third consecutive quarter of profitable earnings. While it’s been estimated that GM’s share price will need to rise as high as $53 for the U.S. government to break even, critics of the government’s “bailout” have neglected to factor in the toll GM’s failure would have had on the overall U.S. economy. Critics cite ideological reasons for their objections. However, no one has questioned the dramatic speed and agility the Obama Administration exercised in shepherding GM through bankruptcy and major reorganization with almost no adverse effects.

Recall that back in December 2008 Ford (F) testified before Congress that it shared many parts suppliers with GM, and that if any of those suppliers went out of business as the result of GM, Ford’s production and viability would have been severely impacted. The loss of GM and its suppliers would have also severely impacted foreign transplants such as Toyota in their U.S. production as they also share suppliers with GM. A study released November 17 by the Center for Automotive Research estimates the U.S. would have lost $28.6 billion in tax revenue and social service expenditures if close to 1.5 million jobs had been lost if GM and Chrysler had been allowed to collapse.

The Wall Street Journal editorial board blames the Obama Administration for creating a “hybrid” in GM. Some of the largest health insurance companies receive over half of their revenue directly from the government via Medicare and Medicaid while almost all participate in the Federal Employee benefit plans. Yet the Journal doesn’t consider these companies to be a “hybrid.” In fact, the Journal wants a full repeal of the healthcare legislation so that our “free market” system can continue to feed at the government trough while rejecting millions of Americans for health insurance. Many uninsured go bankrupt from paying retail rates for their care while their tax dollars go towards enriching executive compensation. According to the Journal’s own survey, at $99 million, United Healthcare (UNH) CEO Stephen Hemsley ranked #2 among the highest paid in total realized long-term incentive compensation; his total direct compensation exceed that of Goldman Sachs (GS) CEO Lloyd Blankfein. Aetna’s (AET) Ronald Williams received total compensation of $15,323.70, putting him slightly ahead of JPMorgan Chase (JPM) CEO Jamie Dimon. At $12,804.80, Wellpoint (WLP) CEO Angela Braly is compensated more than Proctor & Gamble’s (PG) Robert McDonald.

Despite the outcry about “government-run healthcare,” you never hear seniors complain about their government-run Medicare. If it’s good enough for our seniors, why isn’t it good enough for the entire nation? Medicare for All would allow GM to save millions of dollars it is obligated to pay for healthcare coverage for retired employees and their spouses.

The Treasury has agreed not to sell more GM shares during the six month lock-up period. The May 17, 2011 Full Moon in Scorpio conjoins the GM stock chart’s Sun. Taurus is ruled by Venus, and Mercury conjoining Venus in Taurus together with Jupiter in Aries opposing the GM stock chart Venus in Libra and squaring the USA Pluto raises the probability that the government will be eager to sell more shares.

Pluto conjoining the GM founding chart’s progressed Sun during the next two years coincides with the timeframe Akerson has estimated it could take to repay taxpayers. GM must combine creative and technological innovation to produce the best quality vehicles in each class that money can buy. As Uranus in Aries completes its transit to GM’s progressed Sun in March 2013, GM has the chance to rise from the ashes free of government control.

(1) Planets do not really move backwards, but appear to from Earth’s vantage point. Jupiter is retrograde for about four months each year and went retrograde July 23; Venus turns retrograde every 18 months and had stationed retrograde October 8.

(2) The number 33 doubles the energy of the number 3 which resonates to Jupiter. It is considered a “master number” and the highest degree of Scottish Rite Freemasonry since it represents the attainment of the highest level of wisdom and truth. 33 breaks down to 6 (3+3=6), a number that vibrates to Venus’ energies of harmony, love, and balance. Adding the numbers up in this way shows the beneficial connection between these two planetary energies.

(3) The zodiac sign rising on the eastern horizon when GM’s shares began trading.

(4) Saturn and Capricorn rule the skin as well as the bones (the structure).

(5) A mathematical calculation that moves the planets forward in time as a method of prediction.

GM Founded: September 16, 1908 time unknown Flint, MI
GM Inc: August 11, 2009 11:20 AM EDT Dover, DE. (The link to GM’s Certificate of Incorporation can be found by clicking here.)
Daniel Akerson: October 21, 1948 in California (birth time & birth town unknown)GM Bankruptcy Filing: June 1, 2009 7:57:51 AM EDT New York City

No comments: