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Most Anticipated IPO Since Google

Monday, 15 Nov 2010 | 5:25 PM ET

The most hotly anticipated IPO since Google has investors scrambling. What must you know?

Underwriters of GM’s hotly anticipated initial public offering are raising the deal’s price to $32 to $33 per share Monday night, according to CNBC’s Kate Kelly.

GM, which is expected to sell at least 365 million shares to the public in a deal set to price Wednesday night, originally said it would likely price those shares at between $26 and $29 apiece.

But after ten days of investor presentations and a growing sense of optimism about the offering, underwriters are opting to raise the price range high above its original level.

Word on the Street
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What’s the trade?

Even at $32, I’m hearing GM stock will still trade up at the IPO, says Gary Kaminky. Chatter suggests hedge funds may flip it in the same day – that is buy and then go short.

However if you’re a retail investor it’s important to know that retail allocations are expected to be quite limited, Kaminksy adds. And longer term, don’t forget that GM won’t be on the S&P 500 for about 6 months. That should leave fundamental support underneath it.

I’d look at a pairs trade; long GM and short Toyota , says Brian Kelly.

I’d be inclined to play the global auto trade with Fiat , Daimler , Renault or Peugeot, says Tim Seymour.

Read More:

GM Underwriters Set to Raise IPO Price to $32-$33 a Share




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Trader disclosure: On November 15, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL), (BAC), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (UPL), (C), (PEP), (OIH), (HES), (AXP), (GS), (FCX), (VRTS), (POT), (AAPL), (IBM), (DIS), (MCD)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MOT)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MT)
Accounts Managed By Kanundrum Capital Own (IEF)
Accounts Managed By Kanundrum Capital Own (TIP)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (REE)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (TD)
Accounts Managed By Kanundrum Capital Own (AWI)
Accounts Managed By Kanundrum Capital Own (HD)
Accounts Managed By Kanundrum Capital Are Long Euro
Accounts Managed By Kanundrum Capital Own (XHB)
Accounts Managed By Kanundrum Capital Own (CLF)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (JO)
Accounts Managed By Kanundrum Capital Are Short (YEN)


For Dan Niles
Alpha One Capital Partners And Niles Own AAPL, HPQ, QCOM Alpha One Capital Partners owns (BRCM)
Alpha One Capital Partners has positions in (JNPR)

For Carter Worth
***No Disclosures***

For Mike Khouw
***No Disclosures***

For Greg Hess
***No Disclosures***



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