By Robert Farago
July 1, 2009
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.
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POWERED
July 1st, 2009 at 2:01 pm
I’ve been wondering about those prices. Why would anyone be trading that garbage right now?
July 1st, 2009 at 2:04 pm
I’ve been wondering for many months now what fools are buying GM stock.
July 1st, 2009 at 2:08 pm
This is the second such message in the last 3 weeks from GM. I have to wonder if there is some kind of legal reason they keep issues these comments (if not an obligation, then as a part of a CYA strategy).
July 1st, 2009 at 2:10 pm
I’m sure their guilty conscience caused them to make that statement… probably the primary GMGMQ buyers are old folks who remember the Good Old Days of American manufacturing, and think they’re helping out their fellow Americans by buying. I’m going blue in the face trying to tell my grandfather that this stock isn’t coming back, and that he needs to stay well away from it.
July 1st, 2009 at 2:27 pm
Since the bancruptcy filing day +1 I assumed any such purchases were done by the traders covering shorts. I bet they made tons of money shorting GM stock and I wouldn’t worry about them spending in excess of $1 per share.
July 1st, 2009 at 2:35 pm
Leaving aside the ignorant, possibly the only people who would be interested would be people looking to start some securities litigation or cover shorts.
But yeah, they will keep saying it so no one can claim that GM hinted that they should buy this worthless stock.
July 1st, 2009 at 3:14 pm
Well, there’s one other reason to buy a share of old GM stock: to get a handsome certificate, suitable for framing as a conversation piece, or to peddle at swap meets or garage sales.
July 1st, 2009 at 3:43 pm
We’re bankrupt, please stop buying our stock. Perhaps that’s what Obama needs to get on TV and say about GM. Maybe that would stop the insanity.
July 1st, 2009 at 4:09 pm
what toxicroach said.
I predict there will be a near endless parade of litigation filed to harass the government regarding the “process” used to gain control of GM.
July 1st, 2009 at 5:01 pm
50merc :
Well, there’s one other reason to buy a share of old GM stock: to get a handsome certificate, suitable for framing as a conversation piece, or to peddle at swap meets or garage sales.
Or ebay; my thought exactly. A cheap conversation piece; but don’t put the share in street name. And don’t be tempted to use it in the bathroom or to wrap fish; newspaper and toilet paper is still cheaper. Well, a little bit…
July 1st, 2009 at 7:37 pm
Day traders.
Buy at $1.00. Sell at$1.20. Repeat.
Nobody paying attention thinks it actually worth anything.
July 1st, 2009 at 7:56 pm
You’ll occasionally find some nuggets from the poorly-informed Old GM shareholders in the Y! Finance message boards—here is GMGMQ’s. My favorites are the “When will they reverse split this stock?” and “I just bought X amount of shares! I double my money at $2!” comments.
Alas, I can barely tolerate skimming through a few pages at a time (horrible grammar and spelling). Idiocracy is here.
July 1st, 2009 at 10:41 pm
A real outrage and substory associated with this is the fact that this stock is even stil listed on the NYSE. I read a story a while back that GM, AIG, etc stocks still generate big trading fees for the masters of the universe, and so they allow them to linger.
Were this company to be listed in Britain, or many other civilized exchanges, it would have been rightly delisted the second they filed C11.
Fact is, it should have been delisted from NYSE long before C11, and put in penny stock / over the counter territory.
And to my understanding, they stopped issuing paper “framable” stock certificates many years ago, as it is all electronically registered.
July 2nd, 2009 at 1:29 am
Did Billy Mays shout “Buy it”?
July 2nd, 2009 at 7:20 am
I heard p71 is buying big.
July 2nd, 2009 at 10:38 am
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.