You might as well pick up some Enron stock too- I hear it's really cheap Just out of curiosity, why would you want to buy stock in a bankrupt company?
because you think the stock will go up short-term? yeah, it's going to zero, but along the way there will be people covering, people who hear of good gm news and think "wow, i'll buy the stock!". mind you, that's generally NOT my trade, and the best long trade already happened (almost a triple from a low-risk entry) but that's why.
Well, to each his own gaj. The risk/reward ratio just doesn't seem to be there. (I realize you wouldn't touch it either)
If GM makes a comeback, will the stock bought at the symbol gmgmq roll over to the next stock symbol? If so, I think it may be worth risking a little now to see where it goes in ten or so years.
No. GMGMQ, the "old GM" will eventually be canceled. When GMGMQ is canceled the shares will be literally worth zero. When GM comes out of bankruptcy, there will be "New GM" shares. Owners of GMGMQ will not received any of the new GM shares. The timing is not certain, but the final outcome is. See http://www.sec.gov/investor/pubs/bankrupt.htm
Many people are being tempted into thinking that GM stock is a great buy right now. Donât be fooled! The stock market is a weighing device that has eyes far into the future - many say at least 6 months or more. The extremely low price that weâre seeing today isnât a sign of bargains to come.
can you short the bankruptcy stocks? if yes cant you just short it, provided you have enough buffer for short term movement, eventually they will goto 0 no? wha's the catch