20 members of GM’s national dealer council have purchased more than $1 million worth of GM stock in what they says is a ‘symbolic gesture to show support and confidence’ in the future of the company. The stock price, which has hit $9 a share, dealers say is undervalued and that GM is underestimated.
"We took a hard look at General Motors and we wanted to show our confidence in General Motors," says Duane Paddock, co-chairman of GM’s national dealer council. "We firmly believe in GM and that we have the best products to sell, our fuel economy is the best story in the industry and the best way to do it was to buy an investment stock."
Paddock who arranged the buying of the big purchase, said that there was not one person who didn’t agree that this was a great idea to show GM they have confidence in the company.
The dealers have timed their purchase well. GM’s stock went up 16.6 percent on July 16 closing in at $11.48. As of 1:10pm today, GM’s stock rose almost 7 percent to $12.27 a share.
Source: Automotive News (Subscription Required)