Yep...they are planning a 1 for 100 reverse split. http://finance.yahoo.com/news/GM-pl...43150.html?sec=topStories&pos=4&asset=&ccode= It will be much easier now to push GM down . I'm hoping to buy 2010 70 puts at 5 cents. 100 bucks down returns $140,000 if they go BK. Thanks GM.
I hear the pickers who own 99 shares will literally get nothing as GM plans to round-down to the nearest 100th.
News out of GM will affect the market more with a price like that, since the Dow Industrials are weighted by price.
Peil, check the fine print: It's not the kind of reverse split you're used to. 100 shares dilute to 1, but the price remains as is. _____ "For the deal to work, GM has to reach agreement with the United Auto Workers to swap stock for about $10 billion of the $20 billion in payments GM must make into a trust fund that will take over retiree health care expenses starting next year. The UAW's stake would total about 39 percent. Bondholders would get 10 percent and <b>current stockholders would get 1 percent."</b> ____
You missed the fact that they are going to increase the number of authorized shares of GM common stock to 62 billion shares. MASSIVE DILUTION!
How can they lose $10 a share when the stock is trading at $1 and change? http://www.bloomberg.com/apps/news?pid=20601087&sid=aBnGUClrlMd0&refer=home
someone told me they shorted a couple hundred shares of GM but I haven't talked to him in about 2-3 months. what does he do now? wait until it goes lower or even goes to a penny to cover his short? what if it goes to 0 ?
Wow...so if thats true, then tommorrow GM should be trading at about 2 cents per share right? I mean if you are holding the stock tommorrow and you find out your are going to lose 99% of your money, that would trigger a sell off right?
If you own 100 shares you get 1. Total outstanding shares goes from 62 million to 62 Billion. That means your total ownership is now 0.0001% of what it used to be. .govpwned
I'd expect GM's trading range tomorrow to be in the neighborhood of 30 to 50 cents/share. Very widely held big household names tend not to crumble too far below that point on the first day after devestating news. (BSC/LEH/AIG/etc...) I'd explain some of the reasons why I think this occurs if I wasn't so tired. Gotta sleep now, maybe someone else will...