Stupit "investors"

[uscitizen]

Traders keep buying old GM stock, despite warnings


Aug 20, 6:45 PM (ET)

By TOM KRISHER and TIM PARADIS


DETROIT (AP) - Whether it's a matter of ignorance or greed, people are still buying General Motors stock, even though the company and the government have warned that the shares will someday be worthless.

Investors are picking up millions of shares every day, thinking they'll profit from what is really a hodgepodge of outdated factories and a pile of debt left behind when the new General Motors Co. exited bankruptcy court protection.

Instead, they could end up losing money very quickly. The price of the shares, currently under $1, has ratcheted up or down as much as 50 cents in one day.

On Thursday, investors traded 13.9 million shares, and the stock closed at 85 cents, down 4.1 percent. The old GM stock had a higher trading volume than big, viable companies like retailer CVS Caremark Corp., banker Capital One Financial Corp. and consumer products maker Procter & Gamble Co.

http://apnews.myway.com/article/20090820/D9A6T4180.html

 

[Damocles]

There's nothing wrong with bottom-feeding. You put some in that you are willing to lose and it can pay big.

 

[uscitizen]

Postmortem profit?

 

[DamnYankee]

Wasn't Apple hovering near the bottom at one time? Who knows, GM could come up with the automotive equivalent of the IPod or something. *shrug*

 

[Damocles]

Wasn't Apple hovering near the bottom at one time? Who knows, GM could come up with the automotive equivalent of the IPod or something. *shrug*

I bought Apple way back in the day when it was at $7, I got many shares at an average cost of $10.25, it went way up to $189, dropped to $87 or so, and is now back up in the $160s... I sold it at $178, and bought back in at $89...

I would no longer consider it bottom feeding, and when I bought it I was riding the averages, it would go up to $21 or so then drop back down to just below $7 then drift back and forth.... My goal was to buy in at $7, sell at $21 and so forth. I didn't set the limit right and it just kept going up.... It was awesome.