Investors are likely already squinting to try to see some reason why they should buy into General Motors' initial public stock offering. After all, we're talking about a company that would have failed due to its own mistakes were it not for the government swooping in with a giant bailout. James Healey provides even more eight reason to be wary about buying stock in the "new" GM," based on what he found in the company's IPO filing. Here's the first:
The filing includes an admission that GM can't keep track of its money. GM said that as of June 30, "we concluded that our disclosure controls and procedures were not effective at a reasonable assurance level because of the material weakness in our internal control over financial reporting..." Thus, you might not be surprised to learn, GM can't promise to "report accurately our financial condition and results of operations in the future in a timely and reliable manner..."
Read the full story at USA Today.
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