GM Reminds Investors Its Stock's Completely Worthless

Illustration for article titled GM Reminds Investors Its Stock's Completely Worthless

The now-bankrupt GM's stock price is up almost 100% this week from speculators and short-sellers, forcing the automaker to make a statement reminding people it's, essentially, a worthless piece of paper and shouldn't be bought. Sad, sad press release below.

GM Statement re: recent changes in GM stock price and volume

GM management has noticed a recent elevation in the volume and price of its common stock. While GM does not control the market or its stock price, GM management strongly believes that any recovery for the common stockholders in the chapter 11 bankruptcy process is highly unlikely, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the secured and unsecured creditors are fully satisfied.

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The World of Vee

this happens to almost every bankrupt company

if a company goes bankrupt, buy enough that you can afford right away (the day of) people will want to off load (dumb) and then you make like a bandit. give the stock two to three weeks, the stock price will rise; usually double due to legal proceedings or (in GM's case) bailout hopes. there will always be someone who'll buy your stock when your ready to sell just be sure to sell before it normalizes again (i think 200-300% increase is the proper sell time, as is the case with GM) I bought $20,000 of lehman brothers two years ago when they went bankrupt AT .03 A SHARE! when the bailout talks happened, the stock rose to .50! now I have an S63.