Remember the last big IPO? … You know, the one before Facebook

Well, Facebook went out at $38 and closed at $38.

The pundits are whining that the IPO was a failure because there wasn’t a big first day pop.

My take: one of the rare times that the IB’s priced a deal at fair market value.

Oh my, “flippers” didn’t get a chance to earn millions by just showing up for work.

Sounds ok to me.

* * * * *
What I didn’t like about the Facebook IPO is that it got most analysts talking about the Government Motors IPO.

Given the chatter, I got curious and checked out the stock price

Oops, down almost 40% from the IPO price …. during a period when the overall market was up over 10%.

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Geez, since Bin Laden is dead and GM is alive, why the stock dip?

The company claimed record profits of $7.6 billion in 2011, the “highest profits in the 100 year history of that company” according to President Obama.

And, the company paid no Federal income taxes on taxes those record earnings.

Why?

Because New GM came out of bankruptcy “owning” all of the tax loss carry forwards from old GM.

That’s not supposed to be allowed when a company goes through bankruptcy — a deterrent to companies trying to simply buy losses to offset some of their taxable earnings.

How did it happen?

According to several sources:

The Obama administration quietly snuck in a special tax break for GM, which allows the company to write off approximately $45 billion in post-bankruptcy losses against post-bankruptcy profits.

It’s good for twenty years.

The $45 million tax write-off is in addition to the more than $50 billion given to General Motors in the bailout,

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