GM Lies.

The stockholders didn't have anything to steal. I think the politicians were concerned about how the US was going to be able to wage war when all the US automobile manufacturing plants become owned by the Japanese, Germans and Italians. Some people in Washington still remember WW2.

If all of GM's assets were to be liquidated the secured creditors would get paid first. Remember that leading up to the Banking meltdown GMAC was where most of GM earnings were coming from. The GM car making business had been losing money for years. And then in 2008 GMAC suddenly became mountain of debt.

Do you think what you would hypothetically do if you were inclined to purchase new car counts for much?

Reply to
jim
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Yeah, but that Studebaker stock is worthless just like the old GM stock is. Nobody can figure out why the old GM is still selling for as much as it is because they have announced that as soon as the bankruptcy liquidation is over the stock will be canceled and the owners will get nothing. My guess would be that people are expecting that someday they will be able to sell it on Ebay like this old Studebaker stock which has no value as a share in any existing company.

-jim

Reply to
jim

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Surely you jest. That would be insane. There were assets dumped into Motor Liquidation Corp. Maybe they actually have some value. Or maybe if you own that stock you get a warrant to buy stock in the new GM. There must be some angle. Of course it might be that brokers are encouraging suckers...er...clients to buy the stock so they can unloand it.

Ed

Reply to
C. E. White

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But it is true.

But the Motor Liquidation Corp. has a huge amount of debt, too. Liquidation of assets is not going to come close to covering the debt. The Liquidation company owns equity in the new GM as part of it's assets (due to the liquidation of the old GM stock). But it is practical impossibility that the eventual sale of the assets (including the sale of equity in the new GM) is going to exceed the debt.

Yes and I suggested a possible angle. There has been considerable speculation about why it is still holding any value. The SEC has said that they think that investors are simply confused by false beliefs such as the ones you suggested. The SEC has warned investors that even with the most optimistic scenario after liquidation is complete the stock will be worthless.

If a broker represented that stock as having any real or potential value that could land them in considerable trouble.

-jim

Reply to
jim

Irrational exuberance, or more likely, fandom. All car brands gather up some fans. Reality/rationality has no impact on them. If they are stock market gamblers, there's hope and fear. Again, reality has nothing to do with it. You can always get somebody to take the bad end of a bet.

--Vic

Reply to
Vic Smith

As I said the stock still has value. Mine is still worth over $100.

Nope. Us old stockholders are wiped out. The stock will eventually be worth nothing. I keep mine because when it finally does goes to zero it will be worth more to me as a tax deduction than if I sell it now.

It trades for the same reason that any other stock trades. The price still goes up and down. People can still make money on it if they play it right. For example it has been as low as $0.06 in the last year. If I had bought $100 worth then and sold it yesterday I would have made around a $1000 bucks...

Reply to
AJL

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