California Autos Examiner

Wednesday, May 13, 2009

GM Stock at 1 Dolla, Nobody Holla

It would seem that everyone is jumping off the ship and at this point GM's stock is simply foundering on the rocks while the company's future is being sorted while. It has been said that GM's share price could fall to around 42 cents if its debt restructuring goes through as planned. With GM luminaries dumping all their remaining shares, there is little room for non-insiders to feel comfortable about holding out any longer.

While unfortunate, this doesn't mean the end of days for GM. Rather, it is a reflection that the current shares issued by GM will end up by and large worthless. GM will issue new stock, either in or out of bankruptcy, and because of that the old shares will be crowded out. With a June 1 deadline fast approaching, we won't have to wait much longer to find out the fate of the General.

The only thing I can really say, is that no matter the current price of the stock, today's General Motors is producing some of the finest cars in its history. Recently released models and those about to be produced are beautiful designs with excellent quality interiors and promising reliability statistics. I fully support GM and its efforts to reinvent itself and I wish its employees all the best.

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