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?
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.
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.
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."
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.. ;-)
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