GM as of right now is at $1.28 a share. Do you think it's a good time to buy? or is this stock headed for the shit hole?
To Buy or Not to Buy GM
- Thread starter marketer23
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Since they are about to declare bankruptcy I would say probably not a good time to buy.
Facepalm.
What you just described is almost exactly what happened in this article: German billionaire commits suicide after VW losseshttp://www.reuters.com/article/topNews/idUSTRE5055O820090106
Jesus.
Guess you don't read the news much?
The US government is pretty much making GM into a complete meltdown of shareholder funds. They're giving themselves all the controling interest and diluting share value.
No , do not buy government motors, don't buy any auto company outside of shorting , becuase the US government is rewarding the unions for votes. The US Gov could easily run out all the other auto companies and own the only company in the US.
Bad times for communist america.
The US government is pretty much making GM into a complete meltdown of shareholder funds. They're giving themselves all the controling interest and diluting share value.
No , do not buy government motors, don't buy any auto company outside of shorting , becuase the US government is rewarding the unions for votes. The US Gov could easily run out all the other auto companies and own the only company in the US.
Bad times for communist america.
Only idiots are trading this right now because they've already stated they will be issuing new shares and the current shares will be wiped out and worthless.
I went from owning a Oldsmobile, to a Pontiac, to a Dodge, which is about to go down with GM - I'll tell you when I'm about to buy a new car, so you can avoid that stock.
Okay, assuming it was a serious question, here's my take on GM as an investment. Keep in mind I'm no longer in the industry and therefore, I no longer give investment advice. So, onward with a grain of salt.
It's impossible to say whether someone should invest in GM common shares. As Fatbat mentioned, they're looming on the edge of bankruptcy. That means the fundamentals are out the window.
However, if this is a Hail Mary investment and you're hoping for a tenbagger (hat tip to Peter Lynch) in a short period, maybe. If GM goes into BK court and can shed their pension obligations and union contracts, they have a fighting chance to become an independently profitable company again. Chances are, that will not happen.
GM common is a long shot and frankly, there are far more promising Hail Marys out there. Common shares have little to no leverage in bankruptcy court because of senior debtholders (i.e. bondholders). In the case of GM, there are the unions to contend with and it's anybody's guess what kind of sway they'll have on the judge.
pocketrockets mentioned the coming dilution of outstanding common. That's another factor to contend with, though at this point, it's far down on the totem pole for this type of speculation. If the fundamentals were sound, it would be a different game.
So, if you're thinking of investing in GM common to fund your kid's college tuition, no. If you're hoping for a quick pop to fund your rebill campaigns, maybe... if you don't mind losing your investment.
Again, take what I've said with a grain of salt and don't consider it advice. I just wanted to offer a serious response to your question.
It's impossible to say whether someone should invest in GM common shares. As Fatbat mentioned, they're looming on the edge of bankruptcy. That means the fundamentals are out the window.
However, if this is a Hail Mary investment and you're hoping for a tenbagger (hat tip to Peter Lynch) in a short period, maybe. If GM goes into BK court and can shed their pension obligations and union contracts, they have a fighting chance to become an independently profitable company again. Chances are, that will not happen.
GM common is a long shot and frankly, there are far more promising Hail Marys out there. Common shares have little to no leverage in bankruptcy court because of senior debtholders (i.e. bondholders). In the case of GM, there are the unions to contend with and it's anybody's guess what kind of sway they'll have on the judge.
pocketrockets mentioned the coming dilution of outstanding common. That's another factor to contend with, though at this point, it's far down on the totem pole for this type of speculation. If the fundamentals were sound, it would be a different game.
So, if you're thinking of investing in GM common to fund your kid's college tuition, no. If you're hoping for a quick pop to fund your rebill campaigns, maybe... if you don't mind losing your investment.
Again, take what I've said with a grain of salt and don't consider it advice. I just wanted to offer a serious response to your question.
=)
marketer23, I'm not a stock advising giant but you should take a vacation to North Korea and think about your investment goals.
Huh? The bondholders just rejected the offer today for the proposed debt-equity swap. GM has till this MONDAY for stakeholders to reach an agreement. It's done and over. There won't be anything left of the stock.
Watch this video (specifically at the 2:20 mark)
Video - CNBC.com
A similar topic was started about investing in WAMU not long ago
GM shares will almost certainly have the same outcome.
hah, i guess no one likes GM, so i'm def not going to buy. I seriously considered. Thanks to all for your advice.
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