General Motors IPO - Continued

I recently posted about the General Motor's Initial Public Offering (henceforth known as an IPO) and discussing mainly whether or not it was with the $25+ that GM as requesting for their Capital raising stock. Well it has recently come to my attention (through CNBC... not exactly insider information) that GM has over $50 Billion (yes, that is Billion, with a B) in tax credits from previous years where there company reported a net loss. Normally bankruptcy would wipe out any tax credits that a company was able to claim, but because GM received TARP funding, and didn't go under, they are still eligible. What does this mean to the individual investor? Well, it means that your $25 stock in GM now has billions more in working capital that it simply does not have to pay in taxes, and can be spread out over years (not just their first profitable year... unless that year is incredibly profitable) this can lead to dividend payments to stockholders, increased capital gains for the company, a much higher ROI, and profit margin for GM's new products. Basically the $25 stock that is going on sale in the next few weeks just became about $50 Billion more valuable. Still think long and hard about your investment options and goals (as $50 Billion in tax credits won't make a bad company profitable, just a good one that much moreso) but in my book, this new info just puts another mark in the “Win” column for GM.