As of 10 am this morning, General Motors stock was trading at about 80 cents. If you think that is a bit of a bargain, you may be a bit of crazy. With The General apparently almost finished with bankruptcy, there is near certainty that the company's common stock will mean exactly nothing in a manner of days or weeks.
GM is warning investors that the stock grab is a bad idea, releasing a statement reiterating its "strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."
With GM common stock scheduled for oblivion in the near future, it seems likely that any money spent on stock in the struggling company would be more useful as kindling for a bonfire. Since the new GM will be owned by the federal government, unions and shareholders, the stock-buying public likely won't have an opportunity to buy in for months – or more likely, years.
[Source: Detroit News | Image: Scripophily Trader]