GM executives dump stock as trading window opens

I hadn't seen this posted anywhere but if this is old news to anyone I apologize.

Link: http://uk.reuters.com/article/companyNewsMolt/idUKTRE54A6FT20090511?pageNumber=1&virtualBrandChannel=0&sp=true

DETROIT (Reuters) - Six General Motors Corp (GM.N: Quote (http://uk.reuters.com/stocks/quote?symbol=GM.N), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=GM.N), Research (http://uk.reuters.com/stocks/researchReports?symbol=GM.N)) executives disclosed on Monday they sold almost $315,000 in stock and liquidated their remaining direct holdings in the struggling automaker.
In filings with U.S. securities regulators, the GM insiders led by former GM Vice Chairman and product chief Bob Lutz detailed stock sales on their behalf on Friday and Monday during a trading window for such transactions.
Lutz, who is now an adviser to the automaker, sold $130,989 worth of GM stock at the closing price of $1.61 on Friday.


That sale of the 81,360 shares cleared out all of Lutz's direct holdings of GM stock, according to his filing with the Securities and Exchange Commission.


The five other executives, including Lutz's successor, Thomas Stephens, GM North America President Troy Clarke, Chief Information Officer Ralph Szygenda and manufacturing chief Gary Cowger and head of European operations Carl-Peter Forster also sold all of their GM stock holdings, according to the filings.


GM is headed for either a bankruptcy filing or an out-of- court restructuring that would wipe out current stockholders by flooding the market with new shares to pay off creditors.

The automaker's stock could be either worthless in a bankruptcy or worth less than 2 cents per share if it proceeds with its plans to issue shares to creditors led by the U.S. Treasury, the company has said.
Insider trading restrictions have prevented GM's senior executives from selling stock holdings for most of this year as the automaker has scrambled to restructure under the oversight of the Obama administration's autos task force.


But after the filing of its quarterly report with the SEC last week, GM executive officers and directors were notified a "trading window" had opened on Friday, spokeswoman Julie Gibson said.

The trading window remained open on Monday and could be open for Tuesday as well, she added.

sad when the top brass in the company doesn't even want their own stock

If stock goes to $.02 a share. Expect a lot of buyer.

Not really...it's very likely that anyone who buys GM stock before bankruptcy will end up getting royally shafted.

Not really...it's very likely that anyone who buys GM stock before bankruptcy will end up getting royally shafted.

Equity holders are the last to get paid in a liquidation, so its logical for them to be most at risk in a restructuring.

The article says in liu of BK they would issue shares to the U.S. Treasury causing shares to be below $.02. So, I could see people putting in cash for the Risk vs. Reward.

sad when the top brass in the company doesn't even want their own stock

Not as sad as when a stock is worth zero

Equity holders are the last to get paid in a liquidation, so its logical for them to be most at risk in a restructuring.
Not anymore; the rules have all been changed (if Chrysler is going to be the model).

It used to be that if you held debt you got paid all the money due you before anybody else got paid but now you get 10 cents on the dollar, told to suut up and go away, and stock is issued to those who didn't even have an ownership interest in the company before the bankruptcy.

Not as sad as when a stock is worth zero

Then would I get to purchase the entirety of GM stock for nothing? 0*1,000,000 (or whatever the figure)=0 :D I could just sign up for it and take ownership for no monetary exhange whatsoever. Sounds like a great deal.

Then would I get to purchase the entirety of GM stock for nothing? 0*1,000,000 (or whatever the figure)=0 :D I could just sign up for it and take ownership for no monetary exhange whatsoever. Sounds like a great deal.

I bet they'd gladly trade your $0.00 for their -46,000,000,000!

It used to be that if you held debt you got paid all the money due you before anybody else got paid but now you get 10 cents on the dollar, told to suut up and go away, and stock is issued to those who didn't even have an ownership interest in the company before the bankruptcy.

Don't forget that you're also made to feel like you're the greedy bad guy and that everyone's shame is on you. I definitely wouldn't want to be a bond or equity holder in GM or Chrysler now.

Then would I get to purchase the entirety of GM stock for nothing? 0*1,000,000 (or whatever the figure)=0 :D I could just sign up for it and take ownership for no monetary exhange whatsoever. Sounds like a great deal.

Buy up 51% of the shares for $0.00000001 and become the majority owner for a short period of time. :D

All of the execs know something we don't.
BK is on the way, the stock is heading to $0.00, so get out with something or hang around for nothing is the play of the day.

This is the first solid sign I've seen telling me BK is inevitable.