Monday, 8 June 2009

The difference between new and old? None

People ask what’s the value of the shares of the old GM.
The answer is: nothing.
It’s a penny stock on his way to zero.
What will be the value of shares in the new GM?
Well, because the old GM’s US pension fund with almost 100.000 million USD in liabilities is transferred to the new GM, the shares of the new entity could be worth as much as the old shares in a couple of years.
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