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While I have been a member of City Data for several years. this is my first posting in the Financial Forum. I'm not by any means a day trader, just curious. What is one buying now when they now buy GMGMQ.PK ? Again I admit total ignorance on what this impending bankruptcy implies, so I'm just wondering what this is.
While I have been a member of City Data for several years. this is my first posting in the Financial Forum. I'm not by any means a day trader, just curious. What is one buying now when they now buy GMGMQ.PK ? Again I admit total ignorance on what this impending bankruptcy implies, so I'm just wondering what this is.
Thanks, Bill
One is buying shares that will eventually become worthless and that cannot possibly recover. Those are the bankruptcy shares. Some people will pump-and-dump them in the short term and make some money. That money will come from people who don't know that particular game well enough to win it.
I guess it's probably obvious that I'm encouraging smart money to stay out of such stocks.
Look this up at Bloomberg, they have excellent search engine for worldwide equities. A good English one is called Digital Look. I have found all kinds of wierd stuff that way. PK: "Pakistan"? I hope not.
Look this up at Bloomberg, they have excellent search engine for worldwide equities. A good English one is called Digital Look. I have found all kinds of wierd stuff that way. PK: "Pakistan"? I hope not.
PK means that it's on the pink sheet. Nothing to do with Pakistan.
Even very experienced day traders can't figure out why gmgmq is over a buck. But, a guy I trade with is consistently pulling 6-10K a day out of it the last couple of weeks. I can't stomach it myself.
Thank you all for your very quick and informing responses. I guess I was correct in my assumption that it will probably be close to worthless, but I was still curious what it meant. Now I believe I understand. Thanks again.
Thank you all for your very quick and informing responses. I guess I was correct in my assumption that it will probably be close to worthless, but I was still curious what it meant. Now I believe I understand. Thanks again.
To clarify so that you understand precisely what people are saying: by worthless, no one means 'of low value'. We mean 'will drop to $0 per share and cease to exist'. That's what happens when a company goes bust and gets the dreaded Q ticker of death. Its doomed shares get traded around the pink sheets for however many months until new ones are issued; you don't get any of those in return for yours, which will cease to be tradeable on the markets in any way.
General Motors yanks the hybrid Malibu, warns common shareholders
Posted Jun 11th 2009 10:45AM by Elizabeth Harrow
General Motors is throwing in the towel on its 2010 hybrid-electric Chevy Malibu, according to a report in The Wall Street Journal (subscription required). Due to weak demand among retail customers, dealers have stopped ordering the car, and the automaker is currently choking on a backlog of the unpopular hybrids.
To drive home the point, the Journal quotes Joe Menegos, the sales manager at a National City, Calif., dealership, as saying, "We could care less" that the hybrid Malibu is being deep-sixed. In fact, the theme for GM this week is the admission of defeat. In a press release late Wednesday, GM commented on its rising stock price, and warned investors that "any recovery for the common stockholders in the Chapter 11 bankruptcy process is highly unlikely, even under the most optimistic of scenarios.
In other words, the automaker has no clue why people are still buying its stock. (Maybe they're desperate for the tax write-off?) No matter what the motivation was for GM's recent advances, traders are finally taking the hint today. At last check, the equity was down more than 10%.[/font]
Last edited by cobra_fat; 06-12-2009 at 03:18 AM..
Reason: fonts
On the other hand, if you want to make easy money, could you short it?
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