# Is it a good time to buy GM stocks?
**URL:** https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615
**Category:** In My Humble Opinion
**Created:** [July 10, 2009, 11:28pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615 "2009-07-10T23:28:29Z")
**Posts on this page:** 12
**Page:** 1
### Author:  [@wisernow](https://boards.straightdope.com/u/wisernow)
#### Post date: [July 10, 2009, 11:28pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/1 "2009-07-10T23:28:29Z")
GM has come out of bankruptcy. What does that exactly mean?
The ticker symbol of GM has changed but it is still being traded on the stock exchange. It shot up by some 37% today.
Questions -
Is it a good time to buy GM stocks?
Are the stocks that are being traded the same that were there before the company filed for Chapter 11?
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### Author:  [@msmith537](https://boards.straightdope.com/u/msmith537)
#### Post date: [July 10, 2009, 11:35pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/2 "2009-07-10T23:35:23Z")
Do you believe that the value of General Motors as a company is going to increase and why?
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### Author:  [@Yllaria](https://boards.straightdope.com/u/Yllaria)
#### Post date: [July 10, 2009, 11:40pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/3 "2009-07-10T23:40:39Z")
Sounds like the good time to buy GM stock was yesterday - assuming you sell today.
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### Author:  [@wisernow](https://boards.straightdope.com/u/wisernow)
#### Post date: [July 10, 2009, 11:46pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/4 "2009-07-10T23:46:10Z")
> [@msmith537](#):
>
> Do you believe that the value of General Motors as a company is going to increase and why?
I think the value of the stock is going to increase from its present value. It has taken a very harsh beating probably more than was due.
Having come out of bankruptcy, with no short term debts and restructuring in place, the only way for a company that is at its lowest is up. The company has material assets of a huge magnitude.
Historically the company has done reasonably well which is indicative of sound fundamentals. What happened was on account of a general economic crisis.
As happens always, the recession will most certainly end and that too probably not too far into the future. It is therefore to be expected that companies that are fundamentally sound will spring back.
IMHO of course.
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### Author:  [@wisernow](https://boards.straightdope.com/u/wisernow)
#### Post date: [July 10, 2009, 11:47pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/5 "2009-07-10T23:47:18Z")
> [@Yllaria](#):
>
> Sounds like the good time to buy GM stock was yesterday - assuming you sell today.
Day trading is good but also dangerous. I am talking of buying holding stocks for a couple of years.
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### Author:  [@Markxxx](https://boards.straightdope.com/u/Markxxx)
#### Post date: [July 10, 2009, 11:50pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/6 "2009-07-10T23:50:04Z")
If I buy GM stock the answer is “NO.” If I don’t buy GM stock the answer is “yes” 🙂
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### Author:  [@friedo](https://boards.straightdope.com/u/friedo)
#### Post date: [July 10, 2009, 11:55pm UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/7 "2009-07-10T23:55:19Z")
The GM trading publicly right now is still the bankrupt GM. A new company was formed to buy the core assets of old GM, including the name and brand, while old GM sells off its European operations and other assets. New GM is not yet a publicly traded company and doesn’t plan to issue an IPO until 2010.
So I would say no, it’s not a good time to buy GM stock. You’d be buying stock in a bankrupt company that just sold its most profitable core businesses to another company, is divesting itself of its international operations, and will shortly be de-listed.
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### Author:  [@UltraVires](https://boards.straightdope.com/u/UltraVires)
#### Post date: [July 11, 2009, 12:14am UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/8 "2009-07-11T00:14:27Z")
> [@friedo](#):
>
> The GM trading publicly right now is still the bankrupt GM. A new company was formed to buy the core assets of old GM, including the name and brand, while old GM sells off its European operations and other assets. New GM is not yet a publicly traded company and doesn’t plan to issue an IPO until 2010.
>
> So I would say no, it’s not a good time to buy GM stock. You’d be buying stock in a bankrupt company that just sold its most profitable core businesses to another company, is divesting itself of its international operations, and will shortly be de-listed.
Which is why I can’t understand why anyone would give a penny per share for the stock. Isn’t the old GM being liquidated with the shareholders getting nothing?
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### Author:  [@friedo](https://boards.straightdope.com/u/friedo)
#### Post date: [July 11, 2009, 12:25am UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/9 "2009-07-11T00:25:10Z")
They’re in Chapter 11 bankruptcy, which is reorganization as opposed to liquidation (that’s Chapter 7). But given that they’re selling a hefty chunk of the business, I really don’t know what will be left to reorganize.
My best guess is that right now people trading it are trying to take advantage of penny-stock swings, or shorting the hell out of it, or both.
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### Author:  [@Winsling](https://boards.straightdope.com/u/Winsling)
#### Post date: [July 11, 2009, 2:43am UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/10 "2009-07-11T02:43:34Z")
> [@Markxxx](#):
>
> If I buy GM stock the answer is “NO.” If I don’t buy GM stock the answer is “yes” 🙂
Please let us know what you decide 😉
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### Author:  [@dalej42](https://boards.straightdope.com/u/dalej42)
#### Post date: [July 11, 2009, 5:08am UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/11 "2009-07-11T05:08:55Z")
Here are some cites:
[Worthless](http://www.fool.com/investing/general/2009/07/10/gm-this-stock-is-worthless.aspx)
[2nd cite](http://seekingalpha.com/article/147015-gm-says-it-straight-and-simple-shares-are-going-to-zero)
[3rd cite](http://www.cnbc.com/id/31851668)
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### Author:  [@friedo](https://boards.straightdope.com/u/friedo)
#### Post date: [July 11, 2009, 5:19am UTC](https://boards.straightdope.com/t/is-it-a-good-time-to-buy-gm-stocks/502615/12 "2009-07-11T05:19:55Z")
> [@dalej42](#):
>
> Here are some cites:
>
> [Worthless](http://www.fool.com/investing/general/2009/07/10/gm-this-stock-is-worthless.aspx)
>
> [2nd cite](http://seekingalpha.com/article/147015-gm-says-it-straight-and-simple-shares-are-going-to-zero)
>
> [3rd cite](http://www.cnbc.com/id/31851668)
And it turns out I wasn’t completely correct: GM has _already_ been delisted from the NYSE.