GM Closes At $1.92 – Whaaa…???
I was watching NBR Wed night. GM had closed at a buck and a half, up about a dime. The journalist opined “I don’t get it”. Well, neither do I.
GM, if all goes according to plan, will issue 60B (yes, that is billion with a B) shares, diluting current stockholders out of existence. He calculated that a share of GM would then be worth $0.01; yes, that is correct: 1¢, one penny, one cent. If you go to the drugstore and there is a gumball machine that takes nickels, you will need 5 shares of GM to buy one gumball. Today was even worse: it closed up about 2 quarters of pocket change per share.
So, this is my question: If you are buying GM at 2 bucks a share,
Please: TELL ME WHY???
OK, perhaps a more apropos question: if GM is still in your Fool portfolio with a green thumbs up, tell me: why haven’t you ended your pick???