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THE OLD and the NEW GM and GMGMQ.PK Investors TAKE Note!

Recs

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July 10, 2009 – Comments (8) | RELATED TICKERS: GM , ISTA.DL , BOOM

 

 There will probably be dozens of posts/blogs about GM coming out of bankruptcy after the 40 day hiatis. Some will dwell on the merits, value, stupidity, future, etc.....some may hit the same topic I am. Too many questions seem to be cropping up and this blog will probably scroll off the boards without notice, but if it gets to even ONE investor of GMGMK.PK then it was worth my lunch time.

                GM is officially OUT of Bankruptcy today. THEY do NOT have Common Stock.

They are owned by some former bond holders, pension, Canadian Government and the US Government. They did come out with more bond debt than they intended, or is probably good for them, in order to make some concessions to do this quickly.

http://www.gm.com/corporate/investor_inf...

General Motors Company (the "new GM") currently has no publicly traded securities. Please note that none of the publicly owned stocks or bonds issued by the former General Motors Corporation (now renamed "Motors Liquidation Company"), including its common stock formerly traded on the New York Stock Exchange under the ticker symbol "GM", are or will become securities of General Motors Company, which is an independent separate company.

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                     What of GMGMK.PK? The former/OLD GM.

http://www.motorsliquidation.com/?evar10...

On July 10, 2009, Motors Liquidation Company sold substantially all of its assets to a new and independent company pursuant to the provisions of section 363 of the Bankruptcy Code.

Please Note: None of the publicly owned stocks or bonds issued by the former General Motors Corporation (now renamed "Motors Liquidation Company"), including its common stock formerly traded on the New York Stock Exchange under the ticker symbol "GM", are or will become securities of General Motors Company (the "new GM"), which is an independent separate company. All of these securities relate to Motors Liquidation Company, and will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy court.

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          What does GM Management think about GMGMK.PK?

http://www.gm.com/corporate/investor_information/

IMPORTANT NOTICE

Management continues to remind investors of 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. Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value.

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                What does that mean for you if you are invested in GMGMQ.PK?

You can ride with with the rest of the "old GM". Say hello to Davy Jones for me.

8 Comments – Post Your Own

#1) On July 10, 2009 at 1:58 PM, ChrisGraley (29.69) wrote:

A rec for you.

The pinks are trading at over a dollar right now. Investor stupidity amazes me more and more all the time.

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#2) On July 10, 2009 at 2:03 PM, FreundInvesting (29.51) wrote:

Efficient market hypothesis? Hah!

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#3) On July 10, 2009 at 2:25 PM, wrparks (68.05) wrote:

I suspect they will get wiped out quite efficiently.......

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#4) On July 10, 2009 at 2:26 PM, outoffocus (23.24) wrote:

I think in order for the GM shareholders to understand this you need to put it in big colorful letters in a popup picturebook. Because anyone buying GMGMQ.PK right now must have an IQ the same as the value of the stock.

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#5) On July 10, 2009 at 2:31 PM, disegno (< 20) wrote:

So can I short GMGMQ.PK?

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#6) On July 10, 2009 at 3:20 PM, TSIF (99.96) wrote:

Market Hypothesis or Market Hypnosis...where's the Hypno Toad?  WE need some help here!

Disegno, unless you are a professional trader, it is extremely unlikely that you can find a brokerage that allows you to short a PK stock, although there certainly were plenty of people who shorted GM a few months ago when it was public. Some of those might have been partially responsible for the erratic behaviou early after the stock went to the PK boards, but I believe that they are long gone.  There have been a few good blogs about people holding their original GM shares that they received on paper certificates to sell as a "collectible", but I don't think that's the case here when it's on the PK board and paper certificates are harder to come by.

I have crossed numerous blogs/posts where people think that GMGMQ.PK is the new GM.   Speculators who are followers and their money are soon parted...... 

 

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#7) On July 10, 2009 at 4:15 PM, outoffocus (23.24) wrote:

I'm assuming this means I should keep my red thumb on this trash until reality hits these idiots.

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#8) On July 10, 2009 at 4:26 PM, TSIF (99.96) wrote:

Save bet,  outoffocus!  I closed mine last month hoping for at least one more rebound back up to $1.50, but that would be a real stretch now. It fell too far to make up that much ground for another round after GM came out of BK.  If I had the call now, I would hold it and ride it down.  It's should be a hammer/gavel charm if you hold it.  I already have a hammer, so I was trying to max the points on the rides and got greedy. Good luck.

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