GM Stock Dips to a Buck, C11 Filing on the 31st
There’s really only question remaining: can GM make it to the end of the month? As the artist formerly known as “the world’s largest automaker” augurs-in for its official face plant, the market is readying for a total wipe out, sending The General’s share price to a buck a pop. Which is, as we all know, about a dollar too much. “Experts have said that GM’s stock is overpriced,” USA Today reports, “considering that the automaker’s debt-restructuring plan will leave current shareholders with just a 1% stake in the reconstituted company.”
All the signs point to a weekend filing at the end of the month (the 31st falls on a Sunday). If the fact that GM’s ex-Car Czar and five of his cronies cashed in their chips wasn’t enough to convince anyone delusional enough to hold out hope for GM’s new new new new new new new turnaround, the Detroit Free Press reports that the ailing American automaker will pay its suppliers early, on the 28th. That way, the payments won’t get stuck in C11 court proceedings. Needless to say, GM’s spinmeisters are lying right to the end. “[GM spokesman Dan] Flores said the move does not mean GM will file for bankruptcy protection.” Yes, it does.
More by Robert Farago
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According to news reports I've seen this is the lowest price/share since, I think it was 1931. But to put "value" into perspective consider the price in terms of purchasing power of the dollar or "constant" dollar. According to the calculator found on the www.measuringworth.com site: $1 in '31 could buy what $14.14 buys in 2008 (the latest year for which data is available). Or put another way, the current $1 bill is worth seven cents in 1931 money. So I guess GM stock is worth about 7 cents a share...
Samuel L. Bronkowitz: “I’d have to assume at this point that a 1$ lottery ticket is a much better investment than 1$ GM stock.” I get your joke sir...unfortunately the reality is GM's stock still has a better chance of giving you something back for your $1 than the lottery. I think my favorite stat on the lottery is that (depending who does the calculation) you have a x10-100 better chance of dying just on the way to buying the ticket than you do to win.
Question, which depreciates faster, the Chevy Aveo or the $1 share? Another question, if a Chevy Aveo crashes in the forest, do the trees laugh?