I see its at 1.12 today. I don't do anything with individual stocks and am wondering what those of you who do think about this. I realize the stockholders are the last to get a cut after bankruptcy. Is the bankruptcy a sure thing now. What is the short-term growth potential of this stock?
Question about GM stock
- Thread starter wartknight
- Start date
The chances of getting anything out of bankruptcy is very small, just look at the sale yesterday by GM execs of thier stock.
You can look at it like you are buying an option, but it would be a slim chance of gain.
You can look at it like you are buying an option, but it would be a slim chance of gain.
I don't know if this is the latest but this article indicates that current shareholders will be essentially diluted out of existence when the company issues 60 billion new shares as it emerges from bankruptcy. So current shares will be worth 1 cent a piece. I guess the market thinks GM has a shot at avoiding bankruptcy though as it is trading at a buck a share.
http://tinyurl.com/r5plx2
http://tinyurl.com/r5plx2
I haven't been following that situation too closely. That's a sure thing now? No more bailouts? I thought maybe with another bailout there may be a nice uptick.
If you would like an alternative investment that is every bit as safe as GM, I have a Nigerian prince that needs just a little money.....
Run do not walk for stage left by selling. The bond holders are destined to make more money from credit swaps defaults so they will not cave: $2 billion profit. AIG, BA, or WFC (aka govt) probably will pay the CDOs out in near future. Therefore, stock is kaput. Start the bus.
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Nothing is set in stone but I would expect continued bailouts along with bankruptcy.
GM has already said they would not make a $billion bond payment in Jun. They are bankrupt. The Chrysler bankruptcy is ticketed for 60 days for certain assets but it will take two years to clean up their books. GM is even more complicated than that. Expect five years to resolve if they continue to make cars. The demoted dealerships will have several lawsuits against GM soon. GMAC is a mess and will see rising losses..
Yeah, RUN don't walk from GM stock right now. Who knows what happens after bankruptcy, but the stock isn't worth the paper it's printed on at the moment.
