GM shares hit lowest point since 1930’s

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The signs of GM going bankrupt was clearly evident yesterday after shareholders sent the company crashing on the New York Stock Exchange. The company’s shares stood at $1.14 at the end of day’s trading, lowest since 1933, just as America was starting to recover from the depth of the Great Depression.

This was clearly a sign shareholders were resigning themselves to making the little they can from the shares before they become almost completely worthless, but of course, some will still hold out in the hope they avoid bankruptcy somehow which could of course revitalise the shares to some extent and could double or triple if GM was to confirm it would avoid bankruptcy (this is not a tip in any way whatsoever), like it did to an extent for Ford in the last couple of months when the air of gloom over them lifted after confirming they would not need bancruptcy protection (but their shares did get hit yesterday after raising more cash by issuing new shares thus obviously diluting the existing shareholders’ capital).

What made it even worse for GM was that some key figures in the company sold their lot. There is nothing worse for confidence when your own directors have no confidence in the company, is there?

The so called big 3 of Detroit have endured great mismanagement over the last few years, long before the current financial crisis just made things a lot worse, and in fact, for companies like Chrysler and possibly GM now, the proverbial final nail in the coffin.