Looks like it was down 33% on Friday. An all time low. Now as a penny
stock, a reverse split is likely at some point or it will be de-listed. But
that might not be neccessary as Government Motors will sell it's assets to a
new Government Motors company leaving the debt behind. The idea is to welch
on the debt and seed the new company with taxpayers cash.
Lets do some rough math. Even if common stock holders are included in the
New Government Motors, they are looking optimistically at a 300:1 dilution
of stock. So divide 75 cents by 300 and you have New Government Motors
stock value. Clearly at 75 cents it is over valued. A reverse split of say
1000:1 to get it back up above a buck so it can stay listed is almost
This is begining to look like NorTel. Imagine if you bought GM Jan 4th 1999
for $87. Lets say GM is worth 1 cent. 8700:1 reduction in value.
NorTel on the other hand, $1220 on August 28th 2000 would net you 19 cents
today. Thats a 6421:1 reduction in value.
GM is going to wind up as the biggest loser, as common stock holders are
likely wiped out. I wonder if Warren Buffett still owns some GM?
So in fact GM could be the biggest worst investment going for some.
I wonder who bought GM @ $87?