What's with GM's stock?

[kwerner]

I just can't understand why GM's stock price continues to hold around the $2 mark. Especially with news like this coming out:

From Reuters article.

...In an unusual filing with securities regulators, GM also detailed plans that would leave current shareholders with only a 1 percent stake if stock is transferred to the U.S. government, the United Auto Workers and bondholders in exchange for debt forgiveness as planned.
GM also warned that shareholders likely would be wiped out if the automaker failed to complete the restructuring and filed for bankruptcy...


Can anyone enlighten me as to why GM isn't a penny stock yet?

 

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[Runum]

GM plans 1-for-100 reverse stock split - Yahoo! Finance

I don't know the answer to your question but I found this.

 

[kidgas]

I have a feeling that after watching AIG go from 0.47 to 1.73, there are enough people willing to take the bet that they can get a quick double or triple on their speculation.

Of course, I am sure there are a few who believe that a reverse split is a good thing and they will have a much more valuable stock

 

[randallg99]

Of course, I am sure there are a few who believe that a reverse split is a good thing and they will have a much more valuable stock

while I agree that there is a perception among the investing world that reverse splits present a value, the reality is that the converse is actually true and this is supported by data.

I am not sure why so many people are placing "bets" with investments for a secure future.

 

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[kidgas]

randall,
I agree 100%. I wouldn't touch GM stock even if the government forced me to do it.

 

[kwerner]

Up 67% in the last 5 days!?!




Aren't these guys going into BK?


This stock is just nuts right now. Reminds me of the dot-com bubble...

:smx4::smx4::smx4:

 

[kwerner]

I wish my online brokerage account let me short stocks under $5. I think shorting GM would be a money maker.

Can anyone recommend a brokerage that will allow you short stocks under $5?

Thx.

 

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[kidgas]

buy some puts

 

[randallg99]

GM Debt-Equity Swap Fails Before Bankruptcy Deadline (Update1) - Bloomberg.com

hopefully these bondholders don't get the Obama treatment that the chrysler bondholders got.