• Jul 2, 2009
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]


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  • 26 Comments
      • 5 Years Ago
      Some of the volume is probably from people buying stock then having the Transfer Agent, issue the certificates and mail to them so they can keep them as souvenirs.
        • 5 Years Ago
        For what? To frame and say "hey kids, when i was your age I bought worthless sh*t"? lol
      • 5 Years Ago
      This always baffles me. My own company is in chapter 11 and it was clear the stock would be worthless, but it still went up and down in response to good/bad news...
      • 5 Years Ago
      Auto Guy wallpaper
      • 5 Years Ago
      Well if you bought GM stock at $0.61 a month ago and can sell it today at $0.91 that's a 50% profit. Not bad for 30 days.

      Bingo!

      I've been trading on the bottom with GM for months and have made a tidy sum, you can afford to buy gobs for nealry nothing and a 20 cent increase can bring a tidy profit, but you have to watch it all the time.

      The stock market isn't for the faint of heart or just slapping in the fund crossing your fingers and thinking it's always an up market.

      Bottom feeding can be profitable.
      • 5 Years Ago
      I'm thinking it's time for a GM name change. After stories like this, what value is left in the General Motors name?
      http://www.cargurus.com/blog/2009/06/16/its-time-for-gm-to-change-its-name/

        • 5 Years Ago
        General Motors is still the number one selling car company in the United States. I am sure that accounts for some value.
      • 5 Years Ago
      Or it's people hoping some kind of class action suit will get the government to throw them some kind of bone per share later in the future with all the illegal things the government and GM have done in this complete debacle of government abuse..
      • 5 Years Ago
      its also index funds and such.

      I'm sure GM is still a part of a lot of ETFs and mutual funds. the managers of those funds should be shot for not removing it from the fund, but they dont care.

      they get a management fee regardless, and people just keep buying passively with their 401k withholdings like idiots.
      • 5 Years Ago
      Probably computer buying and selling.

      I have to wonder how much buying and selling out there is on autopilot.

      • 5 Years Ago
      The federal government and the union want out of ownership as soon as possible but one thing is apparent: General Motors is not going away. In fact, the "new GM" will end up being stronger than has been in decades. People know this. But they mistakenly believe that buying into the stock now will pay fortunes in the future. They will be proven wrong.
        • 5 Years Ago
        you're probably right.
        they probably think they are buying stocks in the "new GM"
      • 5 Years Ago
      This is what happens when people can't short the stock - the value will always be above the fundamentals.
      • 5 Years Ago
      Well if you bought GM stock at $0.61 a month ago and can sell it today at $0.91 that's a 50% profit. Not bad for 30 days.
      HotRodzNKustoms
      • 5 Years Ago
      I was actually thinking of buying a single share of stock to have the stock certificate. I mean the piece of paper is worth more than the stock so maybe in time when the environmentalist declare the environment the greatest single threat to the environment, the paper might actually go up in value after they burn all the trees down.
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