I have been seriously thinking about investing in GM, its currently at .60 a share, just 2 years ago it peaked around $40.00. I am young and have money to spend, its a big gamble but the return could be huge. The government wont let the company fail so how could i go wrong? what do you guys think about this?
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posted: Oct. 7, 2009 @ 10:11a
UncaMikey
Happy Member
posted: Oct. 7, 2009 @ 10:13a
Ah, you have much to learn, grasshopper.
krk77
Senior Member
posted: Oct. 7, 2009 @ 10:16a
with the same hand buy a House or two and some gold, how could you go wrong?
darkz said: I have been seriously thinking about investing in GM, its currently at .60 a share, just 2 years ago it peaked around $40.00. I am young and have money to spend, its a big gamble but the return could be huge. The government wont let the company fail so how could i go wrong? what do you guys think about this?
darkz
New Member
posted: Oct. 7, 2009 @ 10:17a
krk77 said: with the same hand buy a House or two and some gold, how could you go wrong?
darkz said: I have been seriously thinking about investing in GM, its currently at .60 a share, just 2 years ago it peaked around $40.00. I am young and have money to spend, its a big gamble but the return could be huge. The government wont let the company fail so how could i go wrong? what do you guys think about this?
not that much money lol.
mcmike522
Senior Member
posted: Oct. 7, 2009 @ 10:21a
krk77 said: with the same hand buy a House or two and some gold, how could you go wrong?
yeah, along with this bridge I can sell to the OP.
Note to OP: you are not supposed to mention specific stocks on the FWF board, but then again, there is no such thing as GM stock so I guess you aren't breaking the rules.
darkz said: SUCKISSTAPLES said: Buy 1000 shares and treat it like a lottery ticket
$600 max downside, $40,000plus upside!!!!!!
that is exactly what i was thinking, the government wont let the company fail so how could i go wrong?
If you don't know what can go wrong, then you need to look harder. Anytime you invest in anything you need to look at the upside and the downside. Be aware of what can go right and what can go wrong.
What can go wrong is that they wipe out the common stock, file for BK and come out of BK a new slimmer company. That is most likely what will happen I think. I don't know much on GM but as long as you understand the downside risk is you will lose whatever you invest, with the upside of somehow it recovers without filing for BK.
If it was a can't miss then someone else would of saw that as well and bought up all these "cheap" shares. but since it still trading this low, there is risk around.
Remember just because a stock has a low price tag on it doesn't make it a cheap stock.
darkz said: SUCKISSTAPLES said: Buy 1000 shares and treat it like a lottery ticket
$600 max downside, $40,000plus upside!!!!!!
that is exactly what i was thinking, the government wont let the company fail so how could i go wrong?
Read up on how Chap. 11 works. A few weeks ago they had the CEO of Motors Liquidation Company (the new name for what's left of the "old" GM) on NPR, and even he was saying that under no circumstances should anybody buy this stock, it is guaranteed to go to zero!
simko1ra
Happy Member
posted: Oct. 7, 2009 @ 10:51a
Those shares will go to $0.00. It is people with your mindset (believing those shares are for the bankruptcy emerged GM) that are keeping the stock above that value. New GM is NOT a public company at the moment. If you want to invest in GM you need to wait until at least next year when the company goes public again. Please do your research before putting real money into an investment.
May be off the topic. My salaried GM supervisor friend who was pretty much told to retire now with a pension or else just received his statement showing all his GM stocks with a zero value. He thought GM would never go bankrupt either.
I can tell you I am not going to spend $40K on a Volt to help revive GM. With the taxpayer fatique regarding more bailouts, you really think the government will keep rescuing GM?
tazzy531
Senior Member - 4K
posted: Oct. 7, 2009 @ 11:38a
Strabo said: The "new" GM is no longer a public entity. Those shares you are talking about at $0.60 are GM's "bad" assets.
DETROIT, June 10 /PRNewswire/ -- GM management has noticed a recent elevation in the volume and price of its common stock. While GM does not control the market or its stock price, GM management strongly believes that any recovery for the common stockholders in the chapter 11 bankruptcy process is highly unlikely, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the secured and unsecured creditors are fully satisfied.
Maybe OP knows something that GM management doesn't know.
simko1ra said: Those shares will go to $0.00. It is people with your mindset (believing those shares are for the bankruptcy emerged GM) that are keeping the stock above that value. So the obvious question is, how do you short it?
davef139
Senior Member - 3K
posted: Oct. 7, 2009 @ 6:40p
To not put all your eggs in a basket, you should split it with Lehman Brother Holdings.
larrymoencurly said: If you have $500 to waste, why not? I wish I had bought Kmart after it went bankrupt.Err...because you prefer to have less money?
If you had invested $500 in Kmart the day after it filed for bankruptcy, your investment would now be worth...$0. That's the same as what a $500 investment in the old GM will be worth before long.
Need to report a short term loss on your taxes? Buy old GM stock! For some low income earners, this could be a great idea. Just under the full $1k saver credit by a few bucks? Suddenly a $100 loss becomes a $600 gain.
tazzy531
Senior Member - 4K
posted: Oct. 9, 2009 @ 12:37p
olegos said: So the obvious question is, how do you short it?
One of the discussions back in July or so was that the reason the stock is not currently trading at 0 is because of short covering. GM became a hard to borrow stock.
I wouldn't worry about GM. They're poised to come roaring back. They've got 535 extremely competent new board members with tons of experience reviving dying auto giants.
The best part of the article is the lead: Montana Rep. Denny Rehberg was no fan of the $58 billion federal rescue of General Motors Co., saying he worried taxpayer money would be wasted and the restructuring process would be vulnerable to "political pressure." Now the lawmaker says it's his "patriotic duty" to wade into GM's affairs.
Along with Montana's two Democratic senators, the Republican congressman is battling to get GM to reinstate a contract with a Montana palladium mine nullified in bankruptcy court. "The simple fact is, when GM took federal dollars, they lost some of their autonomy," Mr. Rehberg says. "I'm worried GM will be vulnerable to political pressure....from me!"
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