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Motors Liquidation Company (MTLQQ) FAQ

August 14th, 2009
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Motors Liquidation Company (MTLQQ) FAQ

original article written by Net Advisor™

There still seems to be some confusion over old General Motors (bankrupt) stock.

Examples of what I am talking about:

08-14-2009, MTLQQ Post #02
Does anyone think GM stock will go up?
“Its so cheap right now, I find it hard to believe it will stay there. Does anyone think it stands to go up? MTLQQ”

08-14-2009, MTLQQ Post #01
New GM company stock symbol?
“what is the new stock symbol to general motors company (not corporation)? also, what does “.PK” stand for in “MTLQQ” stand for? I’m just looking for THE American GM, and not the .MX, but not sure what to look for.”

I’m still trying to help people from losing any more money than they already lost over the last 2 years (2007-2009). To help clear up the confusion, I have created this MTLQQ FAQ page.

So here is the skinny on old GM stock:

1. Until further notice, GM has NO public stock for investors to buy.

2. What is left is: “Motors Liquidation Company or MLC

3. The current stock symbol for this company is MTLQQ.

4. The stock is traded on the pink sheets OTC. It is not traded on a major stock exchange anymore. If you are not familiar with what this means, do some research or get a professional advisor to help you with your investments.

5. Buying stock in MTLQQ is NOT an investment in General Motors. Anyone buying stock in MTLQQ is speculating in a bankrupt business that is holding the least desired assets that no one else wanted to buy from GM’s prior bankruptcy.

Keep in mind that the name of this business was created to be OBVIOUS – “Motors LIQUIDATION Company.” Please read this again. Notice the company is NOT called “General Motors Liquidation Company.” The term “motors” does not imply anything close that means General Motors. Are you with me?

The sole purpose of MLC to is liquidate (sell) remaining assets that GM, the government or no one else wanted from the 363 sale to new GM.

MLC is in bankruptcy and will be there until all maters related to this company is resolved by the bankruptcy court having jurisdiction. There is reportedly more debt in MLC than assets to sell. Creditors will be paid first. They will be lucky to get pennies on the dollar. Common stock holders (MTLQQ) are paid last. They are expected to get ZERO.

6. What will happen to MTLQQ stock?

Eventually, and upon completion of the bankruptcy, the stock by all projected accounts, will cease trading and become worthless. Please don’t think that penny stock speculators will have extra time to sell, or get any special notice to sell before this happens. That is not MLC’s job.

A bankruptcy filing is a public document and just because one is living in a cave, does not mean they can’t come back and say, “I didn’t know.”

The stock is not likely to trade down, to 80 cents, then 75 cents, then 60 cents, then 50 cents, then 30, etc, etc to show a wind-down of the bankruptcy ending. That is not how stocks trade, even in bankruptcy. They trade with high volatility, and one day with the whack of the judge’s hammer, the case is resolved, and the stock stops trading at what ever price it was at the time. There is nothing anyone can do after this. Finalized means finalized.

Think of MTLQQ stock as a game of musical chairs. Right now, the music is going on, but most everyone knows that there are few chairs left, and a lot of people playing. What I left out is that “investors” are playing this game blindfolded. Yes, so when the music stops, players will suddenly learn that there are no chairs to sit on. They fall on their —. (i.e. They lose all their money). Bottom line: AVOID MTLQQ stock.

7. The government is NOT likely to bring out a new IPO for new GM anytime soon. Right now, GM would likely have a market cap less than $1 Billion. So no one in their right mind would ever pay 50x market cap for an IPO. The government will wait until the auto industry, the economy and especially GM has began to be profitable, is stable and can remain an ongoing concern.


Additional FAQ:

1. Why do people call GM – “Government Motors?”

MS-NBC Video

More Video

To view my General Motors Q&A History since June 2008, please see:

General Motors Q&A Post History


Note: The “ML” logo shown above is NOT an official logo of Motors Liquidation Company. It is for “entertainment purposes only.”

image may be © copyright by respective owner

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