Posted on 11/15/2010 2:47:41 PM PST by fight_truth_decay
El wrongo on your part. Ford is a privately owned company. GM is owned by the Government and BO is the CEO. BO took the shareholders money once and will do it again.
What about the stock that was owned previously? Did the buy out the stock holders? If not, than don’t they still own stock?
“Anyone who buys into this is a fool and will lose his/her money.”
Actually they are wise, forward looking investors putting skin in the game, and I have some preferred stock in a Ukrainian tractor factory collective that might interest them as well.
Shares of Motors Liquidation Company (PINK: MTLQQ) are rallying in trading today. The penny stock reached a high of $0.27 in mid-day trading, and at last check, it was up 15.60% to $0.252, with volume up from a daily average of 4.44 million to 10.80 million.
Motors Liquidation Company, the old General Motors, filed for a bankruptcy under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Code for the Southern District of New York. As the new General Motors prepares for its IPO, FINRA, the largest independent securities regulator in the U.S. is warning investors not to confuse shares of the old GM with the IPO. None of the holders of old GM shares are entitled to receive newly issued shares in the new GM.
Stock holders got wiped out. What’s worse they even screwed the bond holders.
Ford is a publicly traded company. GM will be a publicly traded company after the IPO. The major difference is that GM went bankrupt and the feds became the major investor.
1. They kept their company solvent without the help of the Feds and the American taxpayer. They remained a private business.
2. GM wont have to pay close to 45 billion in taxes on “carry forwards.” What a sweet deal and preferential and special treatment from the Feds.
Wonder what other shenanigans the Feds will pull that will help GM? Will they look the other way on recalls, litigation,...
It's an interesting story. Once upon a time, the United States was a country in which the rule of law mattered. Looking at the GM bailout, you can tell that the rule of law was a very long time in the past.
"I've been holding them for years. What's another couple of months?"
That's the strategy Northville's Frank Drew says he's using for his General Motors bonds. The bonds, with a face value of about $150,000, are now trading at about a third of their original value. But once the part of the old GM still in bankruptcy is liquidated, Drew will get GM stock. His bonds will be put in a pool with about $37 billion worth of bonds and other unsecured claims, and 10% of GM's 1.5billion common shares will be issued to bondholders proportionately to the value of their bonds.
“The bonds, with a face value of about $150,000, are now trading at about a third of their original value. But once the part of the old GM still in bankruptcy is liquidated, Drew will get GM stock. His bonds will be put in a pool with about $37 billion worth of bonds and other unsecured claims, and 10% of GM’s 1.5billion common shares will be issued to bondholders proportionately to the value of their bonds.”
If the new stock is trading at 32, that will be about $5 billion for $37 billion in bonds, or about 13 cents on the dollar. He should get out now at 33 cents on the dollar?
..think the number was approx $.10 on the dollar so yes. Long term holdings is key
Translation: We have no idea how much money we spend or where we spend it. We're clueless.
http://news.yahoo.com/s/ap/20101115/ap_on_bi_ge/us_gm_ipo_red_flags
Reasons to sit out GM’s initial stock offering
http://news.yahoo.com/s/ap/20101115/ap_on_bi_ge/us_gm_ipo_red_flags
Me? I believe I'll wait a month or so, for the CBOE to put up listed options on this turkey, and then either write a bunch of OOM calls or buy a bunch of long-dated OOM puts.
But that's just me. And I freely confess that I don't know anything at all about options, even though having traded them since 1969 and written a book or two on the subject, and 160-odd articles.
If you fancy Government Motors, then you just buy a stack of the shares, don't you?
Good trading to you!
Good trading to you!
;^)
You tell me which one will be the better stock long term.
Note, Ford has been on a tear as of late and closed over 17. It was March of 09' you get Ford for less than 2 bucks a share.
As an ordinary thing (and, granted, this IS NOT an ordinary case), the Chicago Board Options Exchange begins making markets in options on new issues, esp. high-profile ones, typically within a month of the new issue coming out.
Does this give you any ideas? (And, no offence, if you are NOT an options trader, it may not give you any ideas...but for some of us, it distinctly does).
I’ve already made an idication of interest in the offering and hope to flip it if I get a chance to participate. I wont be staying around to see the fall-out from the minorities 0 has coerced GM to install on the board and in excutive management.
Nevertheless, good trading to you!
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