Tilted Forum Project Discussion Community - View Single Post - General Motors bankruptcy process and its affect on stockholders?

Jimellow · 04-20-2009, 10:22 AM

Thanks for the replies.

It's hard for me to imagine General Motors disappearing from the face of American car manufacturing, and lately their stock price is a $1.00. With that said, it certainly seems a risky play. But with it so cheap, providing they don't go bankrupt and disappear, you're likely to turn a nice profit over time.

Ford was at about $1.00 in late November, and they're hovering around $4.00 now, which is still mediocre, but would have been profitable had someone bought stock at $1.00 per share.

To consider investing in failing stocks seems to be the complete opposite approach of most investing advice, but providing the company doesn't totally crumble, it seems there is potential for gains. It's admittedly tempting to consider, providing you're willing to accept the fact that the money is disposable in the literal sense of the word.

Is there any difference between a stock that is bought before a company enters Chapter 11 and stock bought afterward, aside from the price? Stock is stock right, or do they have different classes like some mutual funds?

04-20-2009, 10:22 AM	#4 (permalink)
Jimellow Junkie	Thanks for the replies. It's hard for me to imagine General Motors disappearing from the face of American car manufacturing, and lately their stock price is a $1.00. With that said, it certainly seems a risky play. But with it so cheap, providing they don't go bankrupt and disappear, you're likely to turn a nice profit over time. Ford was at about $1.00 in late November, and they're hovering around $4.00 now, which is still mediocre, but would have been profitable had someone bought stock at $1.00 per share. To consider investing in failing stocks seems to be the complete opposite approach of most investing advice, but providing the company doesn't totally crumble, it seems there is potential for gains. It's admittedly tempting to consider, providing you're willing to accept the fact that the money is disposable in the literal sense of the word. Is there any difference between a stock that is bought before a company enters Chapter 11 and stock bought afterward, aside from the price? Stock is stock right, or do they have different classes like some mutual funds? __________________ Desperation is no excuse for lowering one's standards.