GM Reminds Holders That Common Stock Has No Value

Another bit stock, GMGMQ, General Motors' pinksheet, has been trading rather well since bankruptcy, as it shouldn't. The value of common stock will be zero in all likelihood. So the company put out the warning today.

GM Statement re: GM stock price and volume (7/1/09 GM)

"GM management has noticed the continuing high trading volume in GM's common stock at prices in excess of $1. GM management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, GM management strongly believes all such claims will not be fully satisfied, leading to its conclusion that GM common stock will have no value. "

That seems to have done the trick. GMGMQ is trading at 85 cents, down 23 cents or 21% from yesterday's close. (The chart to the right is an intraday chart of GMGMQ.)

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