I mentioned below that GM bonds might have been a good play in hindsight. This does not mean GM stock is a good play. I would not touch common stock of a bankrupt company that's in the process of being reorganised with an 18 foot pole unless you were short to begin with. It's not in keeping with my overall investment philosophy.
This is a wife vs. mistress scenario! There's a very big difference between being a bondholder of a bankrupt company and a common shareholder of a bankrupt company. The bondholder will take legal precedence over the common shareholder.
For those wanting to buy GM common stock, please keep a cool head. The recent rally could be a combination of short covering and over-exuberant investors buying up the stock.
More on the GM reemergence from US News & World Report and The Motley Fool.
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