Hi Lou,
Avid listener of yours on AM640, keep up the good work. I have been watching General Motors stock and I can't help but wonder that there might be an opportunity here. They appear to be on the right track with their restructuring efforts and I was wondering if it might be a good time to purchase some GM stock at bargain basement prices? Your thoughts?
Happy Capitalism!
Ken
Hi Ken,
Thanks for your support and make it a huge 2010! I have had a number of emails regarding this stock so here's the story on General Motors.
After the U.S. and Canadian governments stepped in during 2009 to save GM, the path to the restructuring was the creation of two separate corporate entities. One called "Good GM" got all the viable assets while " Bad GM" got all the questionable assets.
The assets of "Bad GM" trade on the Pink Sheets in the U.S. as Motors Liquidation Corp. (MTLQQ - PINK). I think the name says it all. This is the graveyard for the problems that were once part of the GM portfolio. At some point in the future, "Good GM" will go public and offer shares to investors. When that happens it may be a stock you should consider for your account, but as far as MTLQQ goes, avoid it like the plague!
MTLQQ will wind up worthless and I think the chart tells the story quite well. There was no reason to be in the stock going back to November of 2008. You can see the death cross in place in December of 2008 and a trend line for close to two years and screaming sell!
Let's move along folks there's nothing to see here!
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