I am a retiree trying to make ends meet. In 2000 I bought at $10K GM bond at initial offering. After GM's bankruptcy in 2009, two years later I received a settlement of $1200. Now GM announces they will be paying profit sharing and bonuses to the same executives and union employees who helped run this company into the ground. I will never buy another GM vehicle and if you agree with me on the immorality of this company, I ask that you never buy a vehicle from them either.
Sentiment: Strong Sell
A cardinal rule of life/investing is to NEVER own shares or bonds or investments in the company you work for. You should always diversify and in this case you did not. To blame GM for the government's malfeasance of the economy, read housing collapse, is unfair. That is one of the reasons that the govt is willing to take a loss on its investment in GM. They know that what the govt did to the economy was criminal and GM and many other companies paid a terrible price. The good news is GM will make people rich if they have faith.
Sentiment: Strong Buy
So let's see, you claim you are a retiree trying to make ends meet ,yet you gamble away 10 K on a bond offering ? You gambled and lost , period the end. The path you chose for your retirement monies has nothing at all to do with GM . Had it been a bank bond, or # 7 in the 6th race at Belmont you made the decision. GM executives or Union employees did not hold a gun to your head and force you to gamble away your savings. Like an alcoholic,a sex addict or a gambler you need to account for your own actions and stop blaming others. Oh, and NO , I don't agree with and neither do millions of others
I will never buy another GM vehicle and if you agree with me on the immorality of this company, I ask that you never buy a vehicle from them either.------------------------ Sorry about your loss, but get over it. I am enjoying my recent purchase of two 2013 GM vehicles. Bowties forever!!
Millions of people feel the same way you do about gm. Idiots that recommend buy gm stock don't realize the hatred for gm in the United States! Liquidation can't come soon enough for me!
Rooks rike you were just chasing after a high interest rate. You do know that the ratings on the bonds were going down yet YOU chose to horld them. You had the opportunity to serll the bonds prior to the bankruptcy, so you are trying to brlame the company for YOUR OWN STUPIDITY.
I don't feerl sorry for you just because you are a passive investor.
Believe in Warren Buffett and David Einhorn
Both these legendary and astute investors have owned GM long since it was knocked down. Berkshire probably bought GM around $23-25 range and Einhorn has reportedly been buying GM on its way down, with a significant position near $20. Both have been proven right so far, especially Einhorn, who made a public announcement on Oct. 4 on his bullishness about GM. Investors who bought right after his announcement would have realized a 12% gain already! I am sure there are many SA investors like me who would have done their due diligence when GM was knocked down to sub-$20 levels. GM's shares traded in July at prices below even the value of its Cash holdings per share (GM in $19's range was a rare opportunity) but even after the run-up, it holds deep value as shown below.
I am glad to see that other people are beginning to realize what a sleazy company GM is and has been. A leach on society and on American people.
Thankfully they got rewarded with something others didn't. A bankrupty.
They have been morally bankrupt for over 40 years.
The way the GM bond holders were treated really #$%$ me off. I never owned GM bonds but I feel for you. Also - the situation in the settlement violated the foundation of how bonds are supposed to be treated. Why invest in bonds if when the going gets tough somebody can just change all the rules.
I don't expect this company to do very well - especially since the same blood sucker folks who destroyed the first one are still basically at the helm.
I was also a bondholder. Purchased some in 2004 (around $4000 worth to get the high interest they were paying) and made a big purchase in April of 2009. I know most bondholders cry over the poor payout post bankruptcy, what most fail to mention was they lost all of their money before bankruptcy.
When I increased my bond holdings in April of 2009 I paid $1.8 for every $25 worth of bonds. This allowed me to purchase $125,000 worth of GM bonds for $9,000. This investment is currently worth ~$28,000 (over 2.5 times what I have in it).
Now the union did get a better deal, which we can argue about forever, but in any bankruptcy creditors with more leverage can get better deals. If the union had struck during the bankruptcy the money lost by the other creditors would have out weighed what was lost through the bankruptcy process. Normal bankruptcy would have likely resulted in company liquidation with a much lower return to the creditors than they received from the government financed unwinding.
" especially since the same blood sucker folks who destroyed the first one are still basically at the helm."
Wrong. Here's an assignment. Go to the GM website and tell us how many of the 14 Directors and the 17 Corporate Officers were on board before the July, 2009 exit from bankruptcy.
wow, what a smug gm reply. megtx1 has been posting for some time and has many msg on bonds. so i believe megtx1 is genuine.
gatorblue3 is one of the chasing wags that think they own the board. what an impression...