Automaker Investing: GM IPO, Toyota, Honda

Despite their less than attractive status back in 2008, automaker stocks are coming back in a big way in 2010. For the past week, Wall Street has been abuzz over the scuttlebutt that General Motors could be days away from filing an IPO, the first step toward becoming a publicly traded company once again. If GM were to file with SEC this week, it would be an impressive turnaround for the company. Just over a year ago, the company submitted its Chapter 11 bankruptcy filings, selling off or winding down unprofitable brands, and transferring all of its valuable assets over to a new entity. Last week, the new GM announced its largest profit in six years, delivering $1.6 billion in earnings before interest and taxes on $33.2 billion of revenue. But GM's announcements were mixed: The company announced that Chairman CEO Ed Whitacre would be stepping down from both of his positions in the company by the end of 2010, after orchestrating the once-beleaguered car company's turnaround. While Whitacre's departure isn't exactly out of left field , the 68 year-old telecom exec commuted to GM's Detroit offices from his home in San Antonio, Texas. Despite the executive change, rumors on Wall Street still suggest that a GM IPO is forthcoming. Reports are surfacing that eight banks will be joint bookrunners for the offering. If that is true, it would mean GM's in the later stages of its pre-IPO work. An early IPO makes sense right now, with current ownership of GM prodominently in the hands of U.S. and Canadian government agencies, old GM bondholders, and the company's employees. It's likely these groups will want to unwind their investments, with a strong exit; an IPO would provide just that. While the chances that GM go public are clearly exciting investors, we shouldn't pass up on some attractive automaker stocks that already trade on major exchanges. In the last few years, Ford F has emerged as a Wall Street darling, avoiding the bailout and bust cycles that U.S. competitors GM and Chrysler fell victim to. But Ford's successes aren't just financial. The company has been making significant strides in quality and innovation with its vehicles, generating substantial buzz for the brand's ability to continue performing at a high level in 2010. To read the rest, head over to TheStreet.com