Let's keep track of the companies that may file for bankruptcy within the next year.

GM
F
TMA
NT
ETFC
S
DSL

 

All of the above

 

I'm far from a fixed income expert but as far as I can tell the majority of those firms' debt are trading at levels that strongly suggest the common stock is worth zero.

 

^ Tru dat.

I don't think we've even sampled the devistation to come. Somebody has to pay and those companies which haven't addressed their balance sheet fundamentals over the past 6 years of relatively good times will be punished.

Again, another great short opportunity for the bears. Find those companies whose balance sheets are the same or worse compared to 2002 and you've got a pretty good idea of who's not going to survive.

 

i hope gm doesnt! i went out on a limb and bought some of their stock cause its soo cheap.

Im a new investor and was looking for something long(er) term.

ill just sit and hope for the best. if they dont go bankrupt then i stand to make a good amount of money!

if they do and liquidate....then, lessons learned. didnt lose too much

 

I don't see any situation in which GM common shareholders turn out OK at the current cash burn rate, GM debt's characteristics, and how the government is talking, but maybe you know something I don't.

If you get lucky enough to get a pop, I'd suggest taking some off. GE is barely above 15. It wasn't long ago buying GE at 20 was the safest trade around. You are down heavy at this point, and they are considering cutting the dividend supposedly (rumor only).

Lots of insurers on the brink as well. PRU has had a hell of a day.

 

Hope is not a strategy. May I suggest the roulette wheel at the Belaggio instead?

Sell all of it first thing Monday morning or suffer the shame of throwing your capital in the toilet.