...did to bondholders throughout this? Considering the stake the government will own and how the love to change the rules in who benefits on the ladder (ie...uaw got more than bo.ndholders which is definitely not the way bankruptsy is conducted) who would be foolish enough to invest in this stock....regardless of how lean they will become from all of this even with givernment backing
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ONE MUST BE AN IDIOT to consider investing in the NEW GM after what the gov...
- Thread starter ferk12
- Start date
Any government in any democratic country is going to know where the public sentiment is, and it is never with the investor. I would personally be outraged to have my tax money used to cut an investor's losses by more than the usual tax rules for gains and losses - and where but tax money could any relief come from? GM has been a basket case for years, and investors in it should have been the first to know and get the heck out.
I agree with you.... don't even bother with this Stock until a year after the Bankruptcy is over or not at all.
Frankly... they will languish a long and painful "death" drawn out for years and years. (or at least until the gov. is done squeezing their bail out billions out of it).
Right now.... the last one standing will be FORD and FIAT.
You get two F's and that's it.
Frankly... they will languish a long and painful "death" drawn out for years and years. (or at least until the gov. is done squeezing their bail out billions out of it).
Right now.... the last one standing will be FORD and FIAT.
You get two F's and that's it.
Jason Alexanders
New member
I don't know. I think it depends on the terms of the agreement; however, typically companies coming out of Chapter 11 don't make good investments.
Factors to consider:
1) Senior Debentures should receive 23-27 cents on the dollar (or less)
2) Assets should be at least 25% higher than total liabilities; it is preferable when it is 2:1.
3) Management should be completely changed.
4) Existing shareholders, preferreds, and subordinated debentures should receiving nothing.
5) Cash-flows from operating activities shall be positive.
If those three factors are met, it is possible that GM could be a good investment; however, if not ALL three factors occur, don't buy the new GM shares. One thing that makes tech companies so popular is that many of them have cash + short-term investments > total liabilities.
Factors to consider:
1) Senior Debentures should receive 23-27 cents on the dollar (or less)
2) Assets should be at least 25% higher than total liabilities; it is preferable when it is 2:1.
3) Management should be completely changed.
4) Existing shareholders, preferreds, and subordinated debentures should receiving nothing.
5) Cash-flows from operating activities shall be positive.
If those three factors are met, it is possible that GM could be a good investment; however, if not ALL three factors occur, don't buy the new GM shares. One thing that makes tech companies so popular is that many of them have cash + short-term investments > total liabilities.