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Microcap & Penny Stocks : Trading post-bankruptcy bounces
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To: Glenn Petersen who wrote (86)7/11/2009 9:58:58 AM
From: RockyBalboa   of 93
 
Thanks, I have noticed :)

>> Message 25773926

Unfortunately I was slow in grasping that stock futures were still open a few minutes; I could have shorted GM futures at good prices (as they have converged towards no discount from 60% discount).

Regarding GM bonds (I own shares in a conduit owning GM bonds), I feel that it has not been clearly stated how bondholders would receive new GM stock: it was contemplated that 10% of the new GM go directly to the holders of old GM bonds; rather than the old company.

The MLCO webpage says that none (neither common stock, nor bonds) will have any connection to new GM. For the old common stock it is pretty clear that they receive squat. But for bonds?

I guess all the commentators have not been familiar with the ongoing squeeze and price distortion in old GM stock; with the entire issue shorted and virtually no possibility to open new short positions the market remains inefficient, simply put.
When opening GM options positions was abolished things got even worse. Before, one could have created some short interest through shorting calls, regardless how underpriced they were.

This is where naked shorting would help - stock would fall to a level where it is approbiate and be it nearer to zero.
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