Shares of General Motors Corporation (NYSE: GM) have fallen more than 30% in trading today on reports that the company's bankruptcy filing will come on June 1st. They're currently trading around 75 cents per share -- their lowest point in more than 75 years.
The interesting thing is that they're trading as high as they are. To the people who purchased the more than 200 million shares that have changed hands today: The market cap of General Motors currently values the company's equity at $470 million when the equity is about to be made worthless with a bankruptcy filing. If this were any company other than GM, investigative reporters would be calling it the most overvalued, over-hyped company on the NYSE.
The sad part here is that, as I reported, General Motors insiders have been dumping the stock over the past few weeks in preparation for the company's bankruptcy filing as naive/naively patriotic "investors" buy in the hope that GM will pull off some sort of 11th hour miracle.
The only question that really remains is how much of his woefully undeserved severance package Richard Wagoner will take home at the expense of taxpayers and retirees.
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Reader Comments (Page 1 of 1)
5-30-2009 @ 4:32PM
James Raider said...
Obama’s ideology is blinding him. His dearth of understanding on economic matters is harmful to the nation, and the manipulation is pathetic to watch.
http://pacificgatepost.blogspot.com/2009/05/obamas-not-so-private-economic.html
Wall Street is quietly cheering and encouraging the moves of a neophyte CEO. You would too, if you controlled the game.