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Wednesday, May 13, 2009
12:19 PM TweetThis
  • After sinking to $1.00, buyers step in to snap up shares of GM (GM), now +16% to $1.33. Reminder: Citigroup (C) bounced off $1 back in March and never looked back.
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This news story has 7 comments:

  •  
    Citigroup looks like Berkshire Hathaway compared to General Motors.
    May 13 12:25 PM | Link | Reply
  •  
    In March, Citi insiders were buying ahead of Pandit's comments about the Jan-Feb period. Yesterday, GM insiders were selling. Zero on the stock seems like a done deal no matter what. I guess some daytraders can have fun with GM for a few weeks.
    May 13 12:36 PM | Link | Reply
  •  
    1) GM is stock is worth much less than $1. If you want to invest in GM, the best alternative is the debt which will be exchanged for equity.
    2) "never looked back" implies knowledge of the future.
    3) There is nothing special about $1/share.

    Basic financial accounting should be mandatory in middle school.
    May 13 12:38 PM | Link | Reply
  •  
    Execs have no incentive to make keep GM out of bankruptcy now... not that $81k to Mr. "Global Warming's a Croc" Bob Lutz makes a big difference to board members, but it is better than a kick in the pants with a golf shoe. Hey Bob, Global Warming is a helluva lot more likely to be with us going forward than GM. Here's another inconvenient truth: putting all your eggs in the SUV/Gas Guzzler basket probably wasn't such a good idea. Dipsh!t
    May 13 12:42 PM | Link | Reply
  •  
    Methinks the author of this post wants to get long some GM puts, and is looking for a better price.
    May 13 12:57 PM | Link | Reply
  •  
    "3)There is nothing special about $1/share."

    Technically this is where they should be delisted if the price were to remain at $1
    May 13 01:07 PM | Link | Reply
  •  
    Ok, but would the value of GM change if it reversed-split 10:1? The author seems to imply that stocks are cheap at $1 regardless of the outlook for the company.

    If the company goes into bankruptcy, the final value of GM stock may very well be zero.


    On May 13 01:07 PM LivininCDM wrote:

    > "3)There is nothing special about $1/share."
    >
    > Technically this is where they should be delisted if the price were
    > to remain at $1
    May 13 02:52 PM | Link | Reply
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