Looks like GM stock may be totally worthless. Let's see how the bondholders are treated. After Obama's thugs threatened Chrysler senior debt holders with public harassment if they didn't bend over and take one for the team, I would not be expect GM bondholders to get a fair deal either.-Lou
GM investors flee ahead of deadline; stock hits 1933 lows
SAN FRANCISCO (MarketWatch) - General Motors Corp. shares on Tuesday lurched closer to oblivion, losing a quarter of their value to hit a new 76-year low amid increasing signs that current stockholders will be left with nothing within weeks.
By midday, GM shares had lost 35 cents to $1.09, a level not seen since early 1933.
The stock has now shed 95% of its value in the past year and even the automaker's top executives have decided it's finally time to cash in their positions.
Vice Chairman Bob Lutz and five of his GM executive colleagues, including GM Europe President Carl-Peter Forster, pulled the trigger on more than 200,000 shares of company stock last week, according to a filing with the Securities and Exchange Commission.
The proceeds of the sale may have been relatively insignificant, but the message they sent to shareholders clearly was not, if Tuesday's stock drop is any indication.
The filings added to a somber mood that was already dogging the stock earlier in the day after CEO Fritz Henderson, who still holds his stake in the company, reiterated to the media in a conference call that bankruptcy is the most likely scenario.
Standard & Poor's Equity Research analyst Efraim Levy essentially echoed what GM's words and actions have already told investors this week.
"Either GM reaches a deal with bond and other stakeholders that will result in government ownership of about 50% of GM common and existing shareholders seeing their interests diluted to a 1% stake," he said. "Or, as we think is increasingly likely, GM will file for bankruptcy protection, making existing shares almost worthless."
Read More:
http://www.marketwatch.com/story/for-gm-shareholders-zero-value-looms-large
GM investors flee ahead of deadline; stock hits 1933 lows
SAN FRANCISCO (MarketWatch) - General Motors Corp. shares on Tuesday lurched closer to oblivion, losing a quarter of their value to hit a new 76-year low amid increasing signs that current stockholders will be left with nothing within weeks.
By midday, GM shares had lost 35 cents to $1.09, a level not seen since early 1933.
The stock has now shed 95% of its value in the past year and even the automaker's top executives have decided it's finally time to cash in their positions.
Vice Chairman Bob Lutz and five of his GM executive colleagues, including GM Europe President Carl-Peter Forster, pulled the trigger on more than 200,000 shares of company stock last week, according to a filing with the Securities and Exchange Commission.
The proceeds of the sale may have been relatively insignificant, but the message they sent to shareholders clearly was not, if Tuesday's stock drop is any indication.
The filings added to a somber mood that was already dogging the stock earlier in the day after CEO Fritz Henderson, who still holds his stake in the company, reiterated to the media in a conference call that bankruptcy is the most likely scenario.
Standard & Poor's Equity Research analyst Efraim Levy essentially echoed what GM's words and actions have already told investors this week.
"Either GM reaches a deal with bond and other stakeholders that will result in government ownership of about 50% of GM common and existing shareholders seeing their interests diluted to a 1% stake," he said. "Or, as we think is increasingly likely, GM will file for bankruptcy protection, making existing shares almost worthless."
Read More:
http://www.marketwatch.com/story/for-gm-shareholders-zero-value-looms-large
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