Ever the gunslinger….

True to our heritage as motorcycle riding, bull running, bungee jumping, hang gliding, fire walking adverturers we bought another lottery ticket this morning.  You can now buy the new GM as GMGMQ.  We bought 1000 shares for $637.  If this is stupid it’s not stupid enough to  hurt and if it works our egos will will be sufficiently full of hot air to take us hot air ballooning without the balloon.  Readers will remember that during the crash we bought “lottery tickets” –C, F, BAC, FNM and others.  The profits on these positions are in the hundreds of percents.  Is the purchase of GM and lottery tickets at variance with our button down image as long term trend traders?  Not at all.  Even Warren Buffet needs a little excitement in his life and that’s why he bought Goldman.  (Also he had them over the barrel and got a deal the Mafia would envy.)  Remember, if you do this at home (buy GM) don’t do more of it than would amuse you to lose.

This Post Has 4 Comments

  1. jeff160

    Isn’t the only way that GMGMQ is worth something a couple of months from now is if when they sell off Hummer, Saturn, Pontiac, etc. that they actually receive much more than originally thought and there is enough left to pay back the bondholders in full? Seems like a long shot since the bondholders are looking at getting 10% of value right now. I could see where newly issued stock might be worth something, but I don’t see where there’s anything left for equity holders at the end of the bankruptcy proceedings. Am I missing something?

  2. HGQANDQRES@aol.com

    Do you think replacing GM (and others recently) will affect how we interpret Dow Theory? if so, how?

  3. marvinho78@hotmail.com

    Is anyone looking at the Dollar Index? Its severely oversold….could a huge bounce be on the cards?

  4. WHC Bassetti

    There are some studies showing that stock in bankruptcy occasionally have high payoffs. Also for scalping and short term trading they can be volatile and thus present opportunities. My buy (even though i made a small profit and would have made much more if I had wanted to ride it) was just a wild march hare.

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