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GM Shareholders: Poof!
Market Ticker ^ | 5/5/09 | Karl Denninger

Posted on 05/05/2009 9:34:14 PM PDT by Kartographer

You didn't/don't hold the stock, did you?

If so, I hope you sell tomorrow, assuming it opens over 2 cents/share.

Seriously.

No really, I'm not kidding.

In a filing with the SEC late this afternoon it was disclosed that the GM "restructuring" would:

Increase the number of authorized shares to 62 billion (!) Reduce the par value to one cent. Effect a 100:1 reverse split for the existing shareholders.

(Excerpt) Read more at market-ticker.org ...


TOPICS: Business/Economy
KEYWORDS: automakers; generalmotors; gm; stockholders; stocks
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1 posted on 05/05/2009 9:34:14 PM PDT by Kartographer
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To: Kartographer

Some need it taken from them ‘for the common good’ to actually see and feel his work in action. Just my opinion, of course.


2 posted on 05/05/2009 9:36:51 PM PDT by allmost
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To: All; Kartographer

Related thread:

GM details plans to wipe out current shareholders
http://www.freerepublic.com/focus/f-news/2245096/posts


3 posted on 05/05/2009 9:37:08 PM PDT by 2ndDivisionVet ("The unarmed man is not just defenseless - he is also contemptible." Machiavelli)
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To: Kartographer

Ouch... How’s that for “change you can believe in”?


4 posted on 05/05/2009 9:41:27 PM PDT by advance_copy (Stand for life or nothing at all)
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To: advance_copy
The market is going to take a nosedive tomorrow.

How many points do you think the DOW will lose?

5 posted on 05/05/2009 9:43:03 PM PDT by Prole (Please pray for the families of Chris and Channon. May God always watch over them.)
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To: advance_copy

2 cents is change isn’t it? ;-)


6 posted on 05/05/2009 9:43:13 PM PDT by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: Prole

The Dow will probably go up on this news. GM is irrelevant. Kind of like if the janitors go on strike in the NYSE building.


7 posted on 05/05/2009 9:44:59 PM PDT by nwrep
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To: nwrep
The Dow will probably go up on this news

Based on what? I agree it will go up. Two trillion in TARP money goes a long way, but what is it based on?
8 posted on 05/05/2009 9:50:06 PM PDT by allmost
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To: Kartographer

The jokes on you America. You voted for a figment of your imagination and you ended up getting us all screwed. Thanks a lot stupid fu#$s.

I’m glad I was smart enough not to own any of that stock.


9 posted on 05/05/2009 9:53:12 PM PDT by Bullish ( Reality is the best cure for delusion.)
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To: nwrep
Interesting points.

Thank you for the information.

10 posted on 05/05/2009 9:54:23 PM PDT by Prole (Please pray for the families of Chris and Channon. May God always watch over them.)
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To: Prole

“How many points do you think the DOW will lose?”

I don’t think the market gives two hoots about GM at this point. Perversely, it may express a positive reaction to the removal of uncertainty.

The market is hugely overbought, so it may weaken after one of the largest and fastest runs of all time. If it does, it does, but I seriously doubt GM could legitimately be cited as a catalyst. JMHO.


11 posted on 05/05/2009 10:23:29 PM PDT by Attention Surplus Disorder (Mr. Bernanke, have you started working on your book about the second GREATER depression?")
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To: Attention Surplus Disorder
Watch the trends in the Eurozone. Early riser's get the trends/ opening guidance. Just my opinion.
12 posted on 05/05/2009 10:32:09 PM PDT by allmost
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To: allmost

http://www.cmegroup.com/

indicating maybe a -90 to -110 point DJ open manana, but a lot can change between now and then.

I don’t consider this much of a big deal; we’ve had a jaw dropping run since the March lows. I’d bet I could find 500 stocks that have doubled, 50-75 that have tripled, and half a dozen that have been 5+ baggers without working up too much of a sweat. These last 2 months have literally been the run of two lifetimes. I’m not saying it has done LT holders all that much good, I’m saying that some of the pctage gains since the bottom have been astronomical.


13 posted on 05/05/2009 10:40:17 PM PDT by Attention Surplus Disorder (Mr. Bernanke, have you started working on your book about the second GREATER depression?")
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To: Centurion2000; RDasher

Billion is the key word.

“Increase the number of authorized shares to 62 billion (!) Reduce the par value to one cent. Effect a 100:1 reverse split for the existing shareholders.”


14 posted on 05/05/2009 10:42:42 PM PDT by Jet Jaguar
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To: Kartographer

Good gosh.

I’m not terribly knowledgeable about these matters, but has there ever been a split that big before?


15 posted on 05/05/2009 11:03:21 PM PDT by El Sordo
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To: Attention Surplus Disorder

Run after the drop completes the picture.


16 posted on 05/05/2009 11:20:35 PM PDT by allmost
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To: Attention Surplus Disorder
..and the PPT just looks on with awe..*W*
17 posted on 05/06/2009 12:15:50 AM PDT by M-cubed (Why is "Greshams Law" a law?)
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To: El Sordo

I don’t understand a reverse split and then turn around and print more shares. It’s either one or the other as a rule.


18 posted on 05/06/2009 12:38:16 AM PDT by chuckles
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To: Kartographer

Now that you’ve told them, will they be guilty of “insider” trading if they sell out?


19 posted on 05/06/2009 6:23:00 AM PDT by JimRed ("Hey, hey, Teddy K., how many girls did you drown today?" TERM LIMITS, NOW AND FOREVER!)
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To: Kartographer

Someone correct me if I’m wrong, but I would guess that a lot of UAW workers and retirees hold GM stock. This can’t please them.


20 posted on 05/06/2009 6:28:56 AM PDT by Senator_Blutarski (No good deed goes unpunished.)
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