Stock of the Day: General Motors

As the share price of General Motors Company (NYSE:GM) has fallen to a post flotation low of USD 30, the Wall Street Journal has speculated that the US Government is preparing a summer sale of its remaining shares. Reuters noted comments from CEO Akerson predicting that the auto maker will not be subject to problems in its supply chain due to the Japan earthquake and that its 2011 outlook remains unchanged at around 13 million vehicles. Despite this, short interest began to build momentum in mid-March rising from 0.7% of the total shares outstanding on loan to 2% in early April. Shorts then covered positions a little to 1.6% of total shares. Given the small free float this is a bigger short position than perhaps meets the eye.