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GM Warrants Seem Extremely Cheap Here...


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From May 2011:

 

http://online.barrons.com/article/SB50001424052970204224904576317351372090580.html

 

GM also has publicly traded warrants—long-term call options issued last month to bondholders of the old GM, who got a mix of stock and warrants worth about 25 cents on the dollar under the bankruptcy agreement. There are two series of warrants, both deep in the money. The Series A, with a strike price of $10 a share, mature in July 2016 and trade around $22.50, a small premium to their intrinsic $21.50 value. The Series B, which have a strike of $18.33 and mature in July 2019, trade around $16.50. Both should closely track GM stock and are liquid, with about 100 million of each series outstanding.

 

Now:

The "A"'s trade at ~$13.90

The "B"'s trade at ~$8.92

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  • 2 weeks later...

anyone else looking at GM?

I just had a quick peek and it is damn cheap this thing has cash pouring in as fast as it was hemmoraging it a few years back. Solve the underfunded pension issue and it becomes a very interesting company. They should just let Warren or Prem manage the pension assets.. Managing pension assets should be easier than managing the float for an insurance company no pesky disasters that require you to write big checks. With pension funds  disasters cause you to write smaller checks( deceased pensioners do not require monthly cheques)
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