Yes, but any current stock will almost certainly become worthless in the bankruptcy process.

 

And if you want to bet on GM, buy the bonds. They have an enormous rate of return, assuming GM actually can make it for a while.

 

I know, I was trying to explain why Ford isn't a "safer" bet than GM, since they can be hurt by GM filing bankruptcy as well.

 

They'd have to pay back the creditors first.

 

Right. And there's about 190 billion reasons that paying back the creditors will be a long, hard process.

 

Fixed. Wrong is an adjective; you needed an adverb.

 

uh, I meant to do that

 

up to 4 dollars... and it looks like it is going to keep going up today. or again call me crazy

 

Keep watching the price and it'll break your heart again. In the past year, there have already been four previous spikes in the share value, and each one of those were sharper than the current gains. And despite all of this, the stock was worth over $29 a year ago and is currently worth less than a sixth of that. If this smells like a good investment, then I wish you luck.

 

that's why i said call me crazy

 

Good investments don't have to be long term. If I bought stock yesterday I'd be up over 20%! Granted, you never know what's going to happen; but if you cash out 20% ahead, you're nuts not to call it a good investment.

Buying GM stock isn't necessarily investing in their long term sustainability...

 

GM has $190b in debt? I thought their debt from continuing operations was more in the $30b range. The rest of the figure was for GMAC, which is (supposed to be) offset by their assets and accounts receivable, and should be treated separately.

 

I don't see how bankruptcy of any of the big three could lead to an eventual healthy domestic auto industry that included any of them.

 

The $190B is for GM alone; back when GMAC's finances were rolled into the balance sheet, the total aggregate debt was more like $430B

GM owes nearly $70B to its suppliers, another $30B to holders of long-term bonds, and then there's the short-term debt and the collective catch-all "other".

The only way to fix GM is to somehow reduce its debt, and that's not going to happen with a mere $12B in government loans.

 

that's exactly what i am saying... i am not looking at it as a long term.. but... from the 3 dollar a share that they were now they are at 5... taking into consideration that getting the bailout/loan from the goverment will boost it... as in the share will go up.. who knows maybe even hit 12 dollars in a couple of months? you just 4x your money. and who knows.. maybe they get their act together and in 3 or 4 years the price goes all the way to 80 that they hit back in 2000... then you would be making a killing. 2010 they get the new contracts... saving a lot of money...

I set up my TD ameritrade account.. and I plan on buying... I am waiting for my money to appear in my damn account in Ameritrade so i can get some stock...
and i see it going up and up and it's killing me. lol I am not trying to be a day trader.. but maybe a month trader...or year trader lol but...call me crazy