The optimism on General Motors is increasing by the day, as the Treasury Department is boosting investor confidence by preparing for the sale of its shareholdings in the Detroit automaker.
Shares increased by 3.2% to US$33.42, surpassing the US$33 IPO price since May 2011. The shares of GM have been rated as 'buy' by nearly 80% of analysts surveyed by Bloomberg while 21% advises to 'hold' the shares. The average share price of 20 of the advisors targeted according to forecasts is at US$37.10, according to Bloomberg compiled data.
Because of the increasing value, GM has attracted other investors such as Warren Buffett's Berkshire Hathaway and David Einhorn's Greenlight Capital, Inc. Berkshire is supposedly purchased about 10 million shares last year while it purchased another 25 million shares by the fourth quarter. Greenlight is said to have shareholdings in the amount of 21.2 million shares. The figures were obtained from data culled by Bloomberg.
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