Should i buy mtlqq stock

As of this writing, Wayne Duggan was long GM. As of p. Back in June, Steve Burns resigned as CEO and from Lordstown's board of directors amid accusations of overstating the pre-order data for the company's Endurance electric pickup truck. Lordstown and electronics manufacturing giant Foxconn officially released details of a partnership that the EV maker believes will transform it into a long-term player in the sector. EST Thursday. The worse news is that it seems 3D Systems has only itself to blame for the drop.

Experts are worried about this asset. But Suze still likes it. A bevy of Wall Street analysts followed up by lowering their price targets for the stock, adding to today's pain. According to The Fly, four analysts lowered their price targets for the stock as a result of third-quarter results.

The IRS makes inflation adjustments yearly, but this year they coincided with hot October inflation data. Negative headlines have come in rapid fire for the company in recent weeks—and it dramatically missed sales estimates for the third quarter. He exercised 2. As it turns out, moreover, these two things are connected. The nearly one million-square-foot plant, which currently employs people, is expected to completely close before the end of Then along came Bharat Biotech.

Bharat wanted a partner to help get Covaxin into the U. The recent spin-off of its managed infrastructure business into a company called Kyndryl NYSE: KD removes a noncore business from its balance sheet. Also, management promised that the two companies would maintain the current combined dividend. The stock price plunged as much as The catalyst that sent the AI-based lending platform lower was third-quarter financial results that far exceeded expectations, combined with an impressive increase of its full-year forecast.

The potential for a partnership with former President Trump gave the mobile marketing platform a meteoric boost. What's next? Under the old regime, when a company finally liquidated, there would be an outstanding short position that would never be resolved. Instead, the short seller would simply promise to pay any proceeds eventually received to the purchaser, and under FINRA rules, that promise would eliminate any remaining obligations to cover.

In my view, this practice defrauded the eventual purchaser, who paid value to obtain the stock, but never received it. Rule T eliminated this fraud, but also required short sellers to borrow stock, limiting the supply. Other professional traders, aware that short sellers will need to cover, have purchased the stock, causing the stock price to be higher than would be the case without the existence of the short interest.

You can expect that short sellers, having been burned once, will avoid this type of squeeze in the future. It is hard to see why. No one is being defrauded. The short sellers got in with their eyes open, as did the institutions that loaned them stock. The short sellers may be irritated at having to pay a price greater than zero for a stock they believe to be worthless, but no one is willing to sell it for zero.

As short sellers are well aware, we no longer believe there is any such thing as intrinsic value, or that anyone is smart enough to figure out what it is.

Instead, markets exist to resolve different opinions about value and claims on assets. As a result, short sellers are forced to cover at the price afforded by the market. It is hard to conceive a fairer way to resolve these competing claims. It gives them one last opportunity to get out. And, the short sellers who have to cover would be delighted if these retail investors, if any are left, would enter the market and sell their remaining stock because that would provide another source of cover.

MTLQQ is different than most reorganizations and liquidations because in most cases the process of determining whether or not there is an operating business worth salvaging, the liquidation of assets—and resolving competing claims on those assets—may take years.

Generally, the resolution of short positions occurs long before anyone can tell what the common stock will be worth at the end. Nonetheless, the strange case of MTLQQ is a window into the wonderful mysteries of the markets in distressed assets, which are every bit as important to our economy as the more newsworthy national stock exchanges.

We sometimes forget that securities markets have two functions. They facilitate capital formation by providing a source of liquidity for investors.

People are much more willing to invest if they know their position can be rapidly liquidated. For example, it is much more stressful buying real property for investment, as compared to securities, because it is much more difficult to sell real property. But securities markets also facilitate capital destruction, which is a necessary part of a growing economy.

Unsuccessful enterprises need to be reorganized, and their remaining assets need to be reallocated to more profitable uses. Markets in the securities of bankrupt issuers serve this function.

Providing a means for investors to get out provides them with capital that can be reinvested elsewhere. It is vitally important that the markets for securities of bankrupt issuers flourish and that the persons who invest in these markets understand what they are purchasing. Whatever your answer I need to know the reason. If it's traded on a market, you can buy it. I wouldn't, though. It's worthless and the price only fluctuates from the daytraders.

When GM emerges from this, these shares will be cancelled, and new stock will be issued in the new company. Response by poster: what do you mean When GM emerges from these shares will be cancelled? Of course you can, it's a pink sheet Not sure what the incentive to buy is, I don't know the business plan. Will this company pay dividends after bankruptcy auctions?

It was formerly known as General Motors, but it sold the rights to the name, along with most of its other assets, to a new entity now known as "General Motors Company. As for buying stock in MTLQQ, their web site says : Management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios.

Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value.

No profit, no dividend. Can't see it as being anything but money down a hole. So it's better to call it the bankruptcy estate of the former company. But G. From the same article: The new G. So no, you can't buy a share of the 'new' GM.

It's a coinflip whether there will be any residual value in the liquidation. Investing should be taken with known risks, not throwing money at something and hoping it works.