GMGMQ is now Motors Liquidation Company. Despite the stock price heading up today, I believe it is heading towards $0.
Just look at http://www.motorsliquidation.com, even management says it’s over. Quite a sad end to such a glorious company.
Good luck to people who are long. I got puts.
Ever since I bought GM put options just a few days before the bankruptcy announcement, I’ve made it my personal mission to educate the public regarding what happens to common stockholders in a chapter 11 bankruptcy.
I’m going to say it here again, when a company “re-emerges” from bankruptcy, your old shares are gone. New shares are issued, completely irrelevant to the old shares.
With just a few more days before my July puts expire, I’m still clinging onto the hopes that GMGMQ hits $0, or anywhere near nothing. In the mean time, I’m combing the internet for information regarding the bankruptcy process. http://www.twitter.com/theticker has been an invaluable resource, providing a play-by-play of the GM bankruptcy court proceedings.
Finally, a good reason to use Twitter.
“GM stock is expected to be worthless,” said Tom Wilkinson, director of GM News Relations. “We are not sure why anyone is still buying it.”
Now even people at GM are echoning what I’ve been saying for weeks. GM shares will soon be worthless, yet has been going up by 20% daily for the past few days. Short covering? manipulation by put writers? pure pump and dump daytrading speculation?
Whatever it is, my advice is to stay away. Good luck for those long GMGMQ.
