GM Bankruptcy Thread

m22au · Mar 30, 2009

http://online.wsj.com/article/SB123836090755767077.html

long WSJ article

m22au · Mar 30, 2009

Given the GM news, I would expect GM to be down much more than 10% this morning.

However I am looking at the stock at $3.27, and wondering ... what are the buyers thinking?

m22au · Mar 30, 2009

update: 10 to 15 mins later, stock is at 2.86 x 2.88, down about 20%.

So a few people have woken up to reality.

yubitsu · Mar 30, 2009

Quote from option_trad3r:

Anyone here buying the exchange traded bonds GRM, BGM, XGM? If the gov't bails out the bondholders it's easy money $$$$, yes?

Government isn't going to bail out bondholders.

cashmoney69 · Mar 30, 2009

The Govt said its NOT going to let GM fail...does that mean its a RISK fee trade buying GM here at 3?

At least thats the message im getting from the news.

Bigpipn · Mar 30, 2009

Quote from cashmoney69:

The Govt said its NOT going to let GM fail...does that mean its a RISK fee trade buying GM here at 3?

At least thats the message im getting from the news.

For all intents and purposes, yes.

Get in but get out by Friday.

TGregg · Mar 30, 2009

Quote from m22au:

The government also said it would launch a plan to guarantee the warrantee coverage of consumers who purchase new GM and Chrysler vehicles during the next phase of their restructuring.

Anybody that relies on this deserves what they get. Take your government covered car to the People's Repair Shop, and you'll be "means tested" among other things. "Hello, comrade. Here for your coverd repair? As you know, your GM warranty is fully honored by Dear Leader, in all his glory. Sadly, your spending report shows too many Big Macs and not enough running shoes. Comrade, you must do your duty to the people and refrain from driving for several months. We will care for your car in the meantime for a nominal charge. Come see us again next Winter."

Cutten · Mar 30, 2009

Quote from cashmoney69:

The Govt said its NOT going to let GM fail...does that mean its a RISK fee trade buying GM here at 3?

At least thats the message im getting from the news.

Study harder, grasshopper.

DebiFortunato · Mar 30, 2009

Everyone knows it cant make it but they are trying to keep the public from thinking that to see if they can get things unwound. I doubt it.. ;-)

Daal · Mar 30, 2009

I would have taken this trade had shares been avaliable to short. I was not too comfortable with selling calls in low priced stocks so I just skiped, congrats for those who caught this