GM made an announcement of a number of debt to equity exchanges (to the bondholders, government and UAW).
According the CNBC, the GM news release indicates the current common stock holders will own about 1% of the company.
With that level of dilution, I am amazed that the GM common stock is up about 25% right now.
Am I missing something?
I understand the relief that GM is moving towards an out of court restructuring, but even with rose colored glasses I wouldn't be buying right now.
CNBC story: http://www.cnbc.com/id/30432177
According the CNBC, the GM news release indicates the current common stock holders will own about 1% of the company.
With that level of dilution, I am amazed that the GM common stock is up about 25% right now.
Am I missing something?
I understand the relief that GM is moving towards an out of court restructuring, but even with rose colored glasses I wouldn't be buying right now.
CNBC story: http://www.cnbc.com/id/30432177
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