This article from Fortune suggests that financial planners are fairly negative on the forthcoming GM IPO. The article raises several good points, including the fact that GM employees and dealers might want to be cautious about buying some of the 5% of shares set aside for them in the IPO. After all, they already have their livelihoods tied substantially to GM's performance and survival. Adding to their level of risk by purchasing large amounts of stock would not be prudent at all.
Overall, the article raises legitimate questions about the IPO, including the issue of whether an investor will be comfortable purchasing shares in a firm that is now on its fourth CEO in the past year or so. When you invest in a stock, you don't just invest in that firm's technologies, products, and strategy. You invest in its leadership team. It's hard to invest in this team, given the turnover over the past year. Perhaps they will do a fantastic job, but a great deal of uncertainty exists. All of these issues point to the big overarching question: Is this really the best time from a financial standpoint for an IPO? It's hard to answer that question affirmatively given all these concerns and questions.