GM is going to 150 bucks per share soon!

Discussion in 'Wall St. News' started by peilthetraveler, May 5, 2009.

  1. I hear the pickers who own 99 shares will literally get nothing as GM plans to round-down to the nearest 100th.
  2. News out of GM will affect the market more with a price like that, since the Dow Industrials are weighted by price.
  3. 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>
  4. You missed the fact that they are going to increase the number of authorized shares of GM common stock to 62 billion shares.

  5. Recall


    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 ?
  6. 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?
  7. 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.

  8. 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...
    #10     May 6, 2009