If you are thinking about buying GMGMQ in hopes of striking it rich since they emerged THINK AGAIN. I have seen several posters on other boards talking about this stock going to 3.00 - 5.00 next week. I tried to tell them what has really happen but was called every name around
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Also for anyone who follows Pennystockchaser.com Notice they ran a con job today
PLEASE READ THE FOLLOWING:
http://www.nytimes.com/2009/07/11/bu...ares.html?_r=1
A Stock With Bounce: Investors Stick to G.M.
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LinkedinDiggFacebookMixxMySpaceYahoo! BuzzPermalinkBy MICHAEL J. de la MERCED and ZACHERY KOUWE
Published: July 10, 2009
Shares in “General Motors,” the company says, are worthless. But many investors apparently have missed the message.
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General Motors Corp
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G.M.’s stock, which now represents the company’s bankruptcy estate, continued an improbable rise in price on Friday, prompting concern by company officials and securities regulators that investors are confused.
The stock, which trades under the ticker symbol GMGMQ, gained as much as 43 percent on Friday, after G.M. announced that it had completed the sale of its assets to an entirely new company. Nearly 75 million shares traded hands until the securities industry’s self-regulator, Finra,
halted trading at 2:09 p.m., citing “extraordinary events.”
The stock closed at $1.15 a share, up 31.3 cents, or 37 percent, for the day, giving the bankrupt company a market value of $702 million, up from $512 million on Thursday.
“This certainly has all the hallmarks of market manipulation, but it’s very hard for the S.E.C. to prove,” said Peter J. Henning, a law professor at Wayne State University in Detroit. “Someone made a lot of money here.”
G.M. has issued statements telling investors not to buy the shares because they are destined to become worthless.
The shares represent ownership in the old G.M., now known as the Motors Liquidation Company, which will be wound down in bankruptcy court. It contains unwanted factories and equipment, and billions of dollars in unsecured claims related to asbestos litigation and product liability lawsuits. Proceeds from the wind-down will go toward repaying secured and unsecured creditors.
The new G.M., formally the General Motors Company, is privately held and will not seek a public listing until next year at the earliest.
In a letter sent to the Securities and Exchange Commission on Thursday, lawyers for Motors Liquidation said they had gone to great lengths to discourage trading in the stock. The company said it “strongly believes that stockholders will receive no value in the bankruptcy liquidation process” and has cited the bankruptcy court’s decision, which calls the company “hopelessly insolvent,” several times in press releases and on its Web site.
For decades, G.M. traded on the New York Stock Exchange under the ticker GM. But after the company filed for bankruptcy on June 1, its listing moved to the over-the-counter bulletin board, becoming GMGMQ.
Finra decided to halt trading in the stock after concluding that investors thought they were buying shares of the new G.M. Over recent weeks, the regulator received numerous calls from brokerage firms and investors asking which company the securities represented, officials said.
Trading in GMGMQ shares can be halted for the next 10 trading days, and Finra officials are expected to release an official notice to investors next week explaining exactly what the securities represent. The regulator also plans to change the stock’s ticker symbol before allowing investors to resume trading, officials said.
Between June 3 and June 24, an average of 60.6 million GMGMQ shares traded every day on the over-the-counter market. Regulators say some investors may have been encouraged to buy the shares after receiving e-mail messages from several publications that provide tips on penny stocks.
For example, a company called Penny Stock Chaser, which runs a Web site that gives stock tips, issued a news release on Friday saying it expected GMGMQ shares to rise after surging 39 percent “as the company emerged from the remains of bankrupt General Motors Corporation by taking over the best assets of the biggest U.S. automaker.” The release noted that the “new GM” currently has no publicly traded securities and shares of the “old GM” will not become securities of the General Motors Company. The company did not respond to phone calls or e-mail messages seeking comment.
It is not uncommon for public companies that have filed for Chapter 11 protection to maintain stock listings, and a small market remains for shares in Lehman Brothers, Delphi and others. For some companies, those shares could regain real value some day. Some companies are able to retain enough value in their reorganizations that equity holders, who are last in line for repayment under the federal bankruptcy code, can gain some recovery when they emerge from bankruptcy.
That is not expected to be the case with Motors Liquidation. As part of G.M.’s reorganization, bondholders — the next rung up from shareholders — were asked to take a large cut to their investments’ value, all but ensuring stockholders would receive nothing.
“Management continues to remind investors of its strong belief that there will be no value for the common stockholders of Motors Liquidation Company in the bankruptcy liquidation process, even under the most optimistic of scenarios,” Motors Liquidation said Friday.
GMGMQ ... Please read!!! 
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