Should I buy Bank of America (BAC), General Motors (GM) and Citigroup (C) shares?

  • Thread starter Thread starter Benjamin Franklin
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Benjamin Franklin

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These companies are really low right now and they have been really high in the past. I do not think these companies will fail because of how large they are. What do you think?
 
Huge risk/reward stocks. If their viable assets are sold off and the companies are liquidated, the shareholder gets nothing. If their debts are replaced by huge equity swaps, the current shareholdings are massively diluted and you lose.

If neither of these happens and they pull themselves back up, you potentially hit the big one - better than a 10 X.

What's actually going to happen? Who can tell? It's a bit like buying options that you do with the expectation that you can be left with nothing, but with a high potential for appreciation.
 
no, no, and no. Buying these stocks is like getting ripped off at a circuit city liquidation sale.
 
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