MSN Money Insight
| Currency | US Dollar |
|---|---|
| British Pound to US Dollar | 1.661682 |
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| Canadian Dollar to US Dollar | 0.946342 |
GM to investors: Don't buy our stock
The automaker warns that common shareholders will be wiped out when it emerges from bankruptcy.
You don't see this very often, but General Motors (GMGMQ) issued one of the most ironic press releases in memory today.
It told investors to steer clear of its stock.
Almost always in a bankruptcy, the common shareholders lose their stakes because all other creditors get paid off first.
GM filed for Chapter 11 bankruptcy protection on June 1 in order to rebuild the company to better compete in a global market.
The automaker noted today that its shares had been trading above $1 since June 8 with pretty heavy volumes. It peaked on June 10 at $1.55.
The company repeated today its "strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."
Investors apparently heard the warning. The stock fell 16.7% to 91 cents.
Ragtop 66
A lifetime General Motors fan (50 years) I was disappointed that I had purchased GM bonds and stock for my retirement.
Greedy unions - poor workmanship and worse - unbelievable poor management caused this.
My Toyota looks real good in my garage. Am considering a Ford product - but will wait to see how they treat their investors. My GM dealer in town faired worse after 90 successful years they cancelled their dealership. Wonder where their customers are going???????
"its stupid comments like your that give gm a bad image"
========
No, it's wheel bearings failing at 37,000 miles and $1200 air conditioners failing at 42,000 miles that gives GM a bad name.
They chose to cheapen their products and give the profit to UAW wages and benefits. Tough hooey, now you've got to lay in the low quality bed you made.
its stupid comments like your that give gm a bad image, gm makes fine cars, just as good as toyota, some were a bit wierd, but the quality is good. management is/was bad.
imports are so over-rated...
GM,Government Motors,
I dont know of anyone that would buy
a auto from the government.Do You?
and yes this stock is worthless,It is just
for quick trades to make a quick buck.
StockScouter data provided by Gradient Analytics, Inc.
Quotes supplied by Interactive Data.
MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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