To Buy or Not to Buy GM

[guerilla]

Has nothing to do with a bear or bull market. You can get rich in a bear market just as easily as in a bull market.

It's about understanding shareholder value.

Most people investing in the last 8 years don't know the first thing about the market, except it was always going up. That is why some idiots would write books or articles such as DOW 40,000 and DOW 100,000 and the like.

You can make money in any market if you know how markets work, and take a hands on approach to investing.

Most people do not. They shop for management of their investments based on past returns, with little understanding of the fundamentals of what they are buying.

Those are the people thinking they can make a get rich quick play on GM. Anyone awake should know that GM is one of the worst plays you can make, but then serious investors already know about other opportunities with similar upside but significantly less risk.

You guys might be clever. Most people are not. Which is why they participate in obvious ponzi schemes and get burned.

 

[MCRunning]

GG

WRAPUP 1-GM to file for bankruptcy, Chrysler sale cleared | Industries | Consumer Goods & Retail | Reuters

 

[Unarmed Gunman]

Funny how GM files for bankruptcy today, adn the shares are still trading at .82 (up 7%).

WTF?

 

[Trademark]

Funny how GM files for bankruptcy today, adn the shares are still trading at .82 (up 7%).

WTF?

As pocketrockets implied earlier, common shares usually disintegrate in a BK. However, GM's BK has become so murky as a result of the unions and government intervention that the market's having a tough time assigning a value to the shares. Confusion breeds opportunity, so there's a chance to enjoy a bump from a short-term Hail Mary pass.

That's how it seems to me. But frankly, I've never been so confused by a public corporation's BK.

A few weeks ago, I watched the President publicly berate institutional bondholders for sticking to their fiduciary responsibility to their investment clients. They refused to accept the Treasury's offer ($.10 on the dollar, I think) on their Chrysler position because they figured they could get more for their clients through the BK court.

So, in this game, anything goes.