Find Reviews by Make:
GM’s secured bondholders may not be getting the Chrysler treatment, but anyone still holding onto GM stock has another thing coming. US News & World Report has compiled a list of the 30 investors who stand to lose the most from the GM bankruptcy. They’re all big, evil banks and investment firms (California’s public retiree system being the big exception), so don’t expect anyone to shed a tear for them. Unless of course one of them happens to manage your retirement. Meanwhile, GM stock is still going up. Huh?
8 Comments on “Who Stands To Lose The Most From GM’s Bankruptcy?...”
Read all comments
A lot of the stock is probably held in “street name” (the brokerage or investment firm) rather than in the name of the individual person, IRA, etc. Some may be owned by index funds that try to hold a proportionate amount of all stocks of a particular category (e.g., the Dow Industrials; S&P 500).
There’s an old saying on Wall Street: “Don’t fight the tape.” When you see a stock decline over a few years by 90% or more, yet keep holding shares, you are fighting the tape. And maybe nuts, too.
believe half of what you hear and less of what you read, except here of course.
and a lot of the holdings are due to indexing to various indexes…..even though GM’s weighting is very small, when you manage index funds, you still have to own some GM.
slateslate DOES THAT EXPLAIN WHY THEIR STOCK HAS GONE UP OVER THE LAST 2 DAYS, AND A LOT CONSIDERING IT WAS PRACTICALLY A DOLLAR.
I WONDER WHAT KIND OF RIPPLE EFFECT THIS WILL HAVE FOR THE MARKETS IN JUNE.
Sorry for the caps, work thing.
Attacking banks and investment firms can only go so far politically. The past 40 years have seen an explosive growth of the “investor class” to include a large chunk of regular Americans, not just wealthy white shoe bankers. Class warfare only works until the bulk of Americans who are in the middle realize that they share interests with those investment firms and that their own assets and wealth are at risk.
I am completely befuddeled about why GM’s stock still has any market value. Can it be because it is still part of the DJIA and S&P100?
One reason not to own an index fund is that they are required to own zombie stocks until the index manager finally pulls the company off the list.
Why does Rupert Murdoch’s Dow Jones company keep GM in the Dow Jones Industrial Index?
GM stock is trading on a “Geithner Put”: What is the probability that in the bankrupcy
a) The stock is not diluted to 0
and
b) Post bankrupcy, there is a significant recovery.
EG, if there is even just a 10% chance of GM’s bankrupcy and the resulting diluted stock being worth $10, the share should be valued at $1. Since its the believers who define the price, the price does make some sense.