Forget about 52-week lows. General Motors Corp. (NYSE: GM) is trading at what looks to be the lowest levels since April or May of 1933. There has not been fresh news from the company, but there is a key event that took place which may be a prelude to the worst case scenario. Executives sold stock, and it looks like this may have been ALL of their shares left in the company in some of these cases.
Interestingly enough, this only represents some $300,000 worth of stock. Vice Chairman Bob Lutz was the largest seller. Other insiders were listed as Stephens, Szygenda, Clarke, and Gowger. CEO Fritz Henderson was not among the sellers in the SEC filings.
Management has not said that bankruptcy is an inevitability on an official basis, but when you see insiders taking this big of a hit it becomes almost impossible to not think about the worst case scenario becoming the most likely case.
GM’s stock is at $1.15 and hit as low as $1.09 this morning. The prior year low was $1.27. What is the best thing to do with a patient suffering miserably that has almost a zero chance of survival?
JON C. OGG
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