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    Stock Alert for Motors Liquidation Company (MTLQQ)

    Motors Liquidation Company (OTCPK: MTLQQ)

    Motors Liquidation Company (MTLQQ) is engaged primarily in the development, production and marketing of cars, trucks and parts. The Company develops, manufactures and markets vehicles worldwide through its four automotive segments: GM North America, GM Europe, GM Latin America/Africa/Mid-East and GM Asia Pacific. In addition to its automotive operations, the Company’s finance and insurance operations are primarily conducted through GMAC LLC. GMAC provides a range of financial services, including consumer vehicle financing, automotive dealership and other commercial financing. Motors Liquidation Company and its subsidiaries completed the sale of substantially all of their assets to General Motors Company on July 10, 2009.

    It was formerly known as General Motors Corporation and changed its name to Motors Liquidation Company in July 2009 in connection with the sale of substantially all of its assets pursuant to Section 363(b) of the Bankruptcy Code and the Bankruptcy Court’s sale order dated July 5, 2009. The Company was founded in 1908 and is headquartered in Detroit, Michigan. On June 1, 2009, General Motors Corporation, along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York. Motors Liquidation Company is in bankruptcy. Investors should be cautious when buying common stock of companies in bankruptcy. It is extremely risky and is likely to lead to financial loss.

    Share Statistics (1-Jun-10) FY

    2007

    FY

    2008

    %

    Chg

    Q4 2008 Q4 2009 %

    Chg

    Symbol MTLQQ Revenue, $Mn 179.9M 148.9M 17.2% 30.78M n/a n/a
    Current price $0.53 Gross marg. 8.1% 2.3% 71.6% -8.2% n/a n/a
    52wk Range: $1.75-0.06 Oper. margin -2.4% -14.3% 495.8% -23.8% n/a n/a
    Avg Vol (3m): 3,723,030 Net margin -21.5% -20.7% 3.7% -31.2% n/a n/a
    Market Cap. 324.21M
    Dil. Shares Outst. 610.56M EPS, $ -71.31 -41.49 41.8% -15.71 n/a n/a

    Source: Reuters.com, SEC Filings.

    Financial Summary

    MTLQQ no longer files financial reports.

    Financial Strength (1-Jun-2010) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 152.83 3.36 0.80
    Current Ratio (MRQ) 289.63 6.24 0.96
    Long-Term Debt to Equity (MRQ) 1.04 90.90 133.95
    Total Debt to Equity (MRQ) 4.13 227.07 200.52

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    No chart available.

    Source: www.ft.com

    No consensus analysis data available.

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=MTLQQ.PK

    Investment Highlights

    None of the publicly owned stocks or bonds issued by the former General Motors Corporation, including its common stock formerly traded as “GM,” are or will become securities in the General Motors Company (“new GM”), which is an independent company. All of these securities relate to Motors Liquidation Company and will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy Court.

    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.

    For more information, Stockholders should review the investor alerts issued by the Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA)

    The Brazilian subsidiary of General Motors Company said it plans to spend $386 million to develop and produce a new model of Chevrolet. A recently issued Company statement did not give details on the new model to be built at the GM assembly plant in Sao Caetano do Sul. The announcement comes two months after GM announced its Brazil operation would invest $780 million to increase output and produce two other new models. GM says it sold more than 595,000 vehicles in Brazil last year, giving it a 19% market share. Brazil’s auto industry is dominated by Fiat SpA, Volkswagen AG, GM and Ford Motor Co.

    Source: https://www.motorsliquidation.com/

    Technical Analysis

    Source: http://stockcharts.com

    MTLQQ is below its 13-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

    MTLQQ is trading near its lower Bollinger Band. This suggests that the stock price is low relative to its recent price action.

    The MACD for MTLQQ currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of zero, which implies that the underlying moving averages are trending lower.

    Insider Trading Activity

    NET SHARES PURCHASE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares Transaction
    Purchases n/a 0
    Sales n/a 0
    Net Shares Purchased (Sold) n/a 0
    Total Insider Shares Held 255K n/a
    % Net Shares Purchased (Sold) 0.0% n/a

    Net Institutional Purchases — Prior Qtr to Latest Qtr
    Shares
    Net Shares Purchased (Sold) (263,863,000)
    % Change in Institutional Shares Held 100.4%

    Source: Yahoo Finance

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