Buy Ford.

[NOBama]

This is the first article I found resulting from a quick Google:

USAToday.com
Posted 5/9/2005 4:07 AM Updated 5/9/2005 1:58 PM

Any recourse for Kmart investors?

Q: After reading your Ask Matt on Kmart, I now understand the process in which former shareholders were wiped out. I still think the whole thing is wrong. What can I do about it? Is there any recourse for me?

A: I've gotten scores of e-mails from angry former Kmart shareholders. And their angst is very understandable. Through a complicated deal, their shares were essentially wiped out. Meanwhile, the surviving corporation merged with Sears to form Sears Holdings (SHLD). And that stock has done extraordinarily well, gaining well over 200% from its 52-week low. Investors almost can't help but feel hoodwinked, as they usually do after a bankruptcy restructuring. For more details on the transaction and what happened, this previous Ask Matt column explains the situation: http://www.usatoday.com/money/perfi/columnist/krantz/
2005-03-28-kmart_x.htm

Some investors are irate because they feel the valuable real estate assets held by the former Kmart were usurped to pay off bond holders. They suspect the company understated the value of its assets going into bankruptcy, allowing it to avoid liquidation but giving it the freedom to give the common shareholders nothing.

More

You can probably find their official SEC Filings regarding the matter but, I'm not going to do it. I believe K-Mart pre-BK shareholders got nadda. Same as I got when Delta Airlines emerged from BK under their current ticker, I got $0.00/shares because my shares didn't exist anymore. Same as K-Mart's. The common shareholder is the last man on the totem poll when it come to being awarded any compensation. By the time they get to us, they usually have no money left.

 

[NOBama]

Ford rolls today. The only question is, how far?

According to FNC there's also talk on the Hill about auto company mergers.

It would be interesting if GM and Ford merge. What would they call it, a GeMFo, a FoGoMo, a...?

 

[PoliticalChic]

Ford rolls today. The only question is, how far?

According to FNC there's also talk on the Hill about auto company mergers.

It would be interesting if GM and Ford merge. What would they call it, a GeMFo, a FoGoMo, a...?

I don't have the guts to buy this stock, but I'll buy it for the fantasy stock market game!

 

[DavidS]

Ford rolls today. The only question is, how far?

According to FNC there's also talk on the Hill about auto company mergers.

It would be interesting if GM and Ford merge. What would they call it, a GeMFo, a FoGoMo, a...?

GM is shedding three brands. In exchange, it could pick up Ford, Mercury and Lincoln. Ford is selling Volvo which is the last of its extended brands: Jaguar, Astin-Marton, Volvo and Land Rover.

I can't believe Ford is getting rid of Volvo. Volvo has REALLY helped Ford improve its overall safety in the past decade. The Ford Fusion is built on a Volvo platform and is selling like hot cakes and received the best pick overall by IIHS.

 

[NOBama]

I don't have the guts to buy this stock, but I'll buy it for the fantasy stock market game!

Hey, You could WIN!

I got to the top 4% yesterday. If I had joined when the game started (with the same picks), I'd be buying a new bus after the game.

 

[Missourian]

This is the first article I found resulting from a quick Google:



You can probably find their official SEC Filings regarding the matter but, I'm not going to do it. I believe K-Mart pre-BK shareholders got nadda..

I stand corrected.

 

[auditor0007]

I have nothing to back this up other than intuition.

I believe your intuition is very good. While Ford probably won't appreciate much in value in the short term, it is the strongest, by far, of the Big 3. More likely than not, it could survive even without some bailout money. Ford puts out a good product and doesn't have nearly as many losers as GM. Chrysler may as well shut their doors. Sell off the Jeep division and scrap the rest of the company.

 

[DavidS]

I have nothing to back this up other than intuition.