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Are you trading a worthless stock?

Recently I have been watching MTLQQ - Motors Liquidation and am surprised by the amount of volume traded on the stock. MTLQQ is the OLD, bad assets of GM. MTLQQ is NOT the new GM (new GM shares should be offered sometime next year). More than 800 million shares have traded since July 15th.

The stock will someday become worthless. The company has even posted a warning on its web site saying the stock will eventually have no value - but people are continuing to trade the sock. My guess is that people are confused and think they are buying new GM stock or people are buying the stock trying to scalp a few pennies while it is still trading. This is risky business, as the stock could become nonexistent as soon as the liquidation ends, or demand could decrease dramatically (and hence the price will fall) as investors realize this is OLD GM stock.

So, I am interested in hearing from you. Has anyone invested in MTLQQ? And if so, why?

Posted by Education Gal on Aug 21, 2009 2:05 PM CDT

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wil123

Date Posted: Aug 27, 2009 at 11:38 AM

I've been trading MTLQQ, I've made close to $2000 on it. I realize it'll soon be valued at 0, but it has made a good day trade. I get real nervous when I buy and I don't hold over a weekend but it has worked out good for me.

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shaun60

Date Posted: Aug 24, 2009 at 12:10 PM

There are many warnings that one day the shareholders of GM will no longer own the company, so waking up one day to see GM will be worthless will not be a surprise. In a capitalistic society, the owner of a public company is the shareholder. Why then the government and/or UAW just say to the shareholders now just hand over their stock certificate? It will be the same as one day waking up to the US changed from a capitalistic society to a socialistic society.

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wmvetter

Date Posted: Aug 24, 2009 at 11:25 AM

There have been at least 4 threads where people asked about the value or worthlessness of GMGMQ and MTLQQ. From reading these, it seems that it is very difficult for some people to believe that this isn't General Motors and some kind of bankruptcy spinoff, because other people are trading it and they can see the price moving in exciting ways. And those who were hard to convince were intelligent people.

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