Reply #24: GM stock currently has no value.

[ieoeja]

It is not being traded publicly. The "old" GM stock is pretty worthless. But that doesn't matter since that stock holds pretty much nothing but debt (I don't really understand how it has *any* value to tell you the truth).

I saw another (yours?) post listing value of the publicly traded car manufacturers. Since GM is the 2nd largest manufacturer, their total value should be a lot closer to Toyota's, or possibly greater after Toyota's recent problems, than to Ford's once GM goes IPO.


The USA/GM books will not be cleared until those shares are sold. Until then, GM will have government money (and we will have GM shares) which makes it possible to paint this picture as negatively as you desire. Or you can simply look at GM's improvement and paint it in a positive manner.

I have a business on which I spend more money than I earn. But once I pay off the mortgage in the distant future, I will earn a *lot* more money than I spend. So I am losing money and making equity. The smart businessman tells the IRS** the former and himself the latter.

The desire, definition, and view are yours.


**Actually, according to what I tell the IRS I am making money because mortgage principal doesn't count as an expense. But according to those same rules, the building is depreciating which means I am losing money. So oddly, I'm losing money according to the IRS for theoretical equity losses, not the fact that I actually spend more actual cash than I take in! Complete opposite of reality. Accounting is so much fun.