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Microcap & Penny Stocks : Trading post-bankruptcy bounces -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (44)	5/25/2009 1:06:36 PM
From: Real Man	Read Replies (1) \| Respond to of 93

Yes, the offer is screwing the bondholders at the moment, and their bid for BK reorganization will likely fail because the President task force is behind saving GM. The bonds will be worth another look after things settle, but for now both stocks and bonds are overvalued. In particular, GM will not be instantly profitable once out of debt, it will continue to lose enormous amounts. For now things look like it will mostly be owned by the government and UAW (it was not dismissed!!! A pre-requisite to profitability). Taking a stake in a nationalized new GM, qiute likely owned by the government and UAW is probably not worth it. It will continue to lose money because their cars are not selling above cost. The stock is currently worth about 2-4c with 100x dilution.