GM: Don't Buy and Say Goodbye
Published: July 1st, 2009
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Straight from the horse’s mouth:
GM management has noticed the continuing high trading volume in GM’s common stock at prices in excess of $1. GM management continues to remind investors of 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. Stockholders of a company in chapter 11 generally receive value only if all claims of the company’s secured and unsecured creditors are fully satisfied. In this case, GM management strongly believes all such claims will not be fully satisfied, leading to its conclusion that GM common stock will have no value.
More by Robert Farago
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Did Billy Mays shout "Buy it"?
I heard p71 is buying big.
Could their be some retirement/investment funds on autopilot that still buy GM shares with every paycheck? After all, it is still listed on the exchange. Unless someone remembers to go actually disable that investment option, then every paycheck I am sure there are a group of people who get GM shares purchased on their behalf.
I have owned an unreliable Saturn Vue for the past 3 years. When I finally had enough of the electrical problems (it just decides not to start some days, the radio comes on for no apparent reason, the horn honks intermittently as I drive - at only 50 000 km - barely broken in)and asked GM nicely to get out of my lease and get me into a Traverse, GM fought me all the way. They won't let the dealer sell me a demo 2010 because (and I quote) there are just too many incentives to help me out on the price. They are only willing to get me into a bottom of the line Traverse model with no options and have me stuck in it for the next 5 years (or more as GM no longer LEASES vehicles). I can get into a (used) LUXURY VEHICLE with all the appointments I can think of for the SAME PRICE as their crappy base model. This truly is a kick in the face. I have been a loyal GM customer for the past 23 years and this is what I get for being so. The almighty dollar is more important than the safety and security of the drivers of their vehicles. God forbid my car fails to start in the middle of winter and I am left stranded somewhere with my small child in the back seat. I wonder how GM would take to press about a frozen family stranded in a crappy product. I can honestly say that this will be the last GM product I own and I encourage all out there to have the same view. You aren't even a number to them.... far less than a pee-on!!!!!!