Taking Stock by Malcolm Berko

Dear Mr. Berko: I'm 87 years old. I started work at GM in 1943 and retired 30 years later in 1973 at 50, and I could fix anything that went wrong on the assembly line. I believed in GM back then, as did every working man in America. So every time I could save enough money, I would buy one or two shares of GM because it was my company. I have 832 shares in 327 stock certificates, with my biggest certificate being five shares, which I bought at $128 just before GM announced a 3-for-1 stock split in 1955. That was the last time I bought stock because GM began to use too many machines to make cars instead of people, and some of us didn't feel good about that. I know GM is bankrupt, but it's still selling for about 70 cents a share, but I don't want to sell my shares because I heard GM would go public again and my 832 shares could be worth a lot more money. And if you think it's an OK idea, I would buy 5,000 shares at 70 cents so when GM goes public at a higher price, all my shares would be worth a lot more. I don't need the money. I still get a decent pension from GM. I quit, and I took a job with the city of Detroit and also get a retirement pension there, plus social security. But it would be nice to make some big extra bucks and splurge it. — H.S., Ann Arbor, Mich.

Dear H.S.: You can still "see the U.S.A. in your Chevrolet," but you can't "come away with me, Cecile, in my merry Oldsmobile" anymore! Way back in 1955, when Eisenhower was president, Charlie Wilson, the chairman and CEO of GM, pompously told the nation: "What's good for General Motors is good for the country." Hmmmmmm! And many Americans don't know how close we came. But I'm sorry to tell you that your shares in this American icon are not worth 70 cents or even 2 cents. GM, the company that promised to put a car in every American garage, croaked June 1, 2009.

Yes, it's quoted at 70 cents a share on the Buenos Aires Stock Exchange and 68 cents on the London Stock Exchange, but those shares haven't traded in six months.

When GM gave up the ghost, the value of your 832 shares vaporized into the ethers and gave up the ghost, too. However, your shares might have some significant value as a collector's item. If some of your shares are signed by Edward Stettinius Jr., Alfred P. Sloan or Wilson, they may have some special value to collectors of old stock certificates. Other than that, your GM shares might be worth a buck apiece as an old curio item suitable for framing.

There's serious talk that GM may come public with an Initial Public Offering, but not until next year. Still, this won't improve the value of your shares. But an IPO will be a boon to the company, and the billions received from an offering would allow GM to fast-track work on new cars, pickups and downsize its SUVs.

The government owns 60 percent of GM; the unions, bondholders and major suppliers probably own the remaining 40 percent. But GM will not sell 100 percent of itself, as the government and other equity holders are likely to hold on to most of what they have, figuring that the values will increase.

However, a small offering could easily raise billions of dollars, which would make the firm more competitive with other automakers that have sizeable bank balances. And if GM does come public next year, I'd consider buying a few shares. This time, new management won't kowtow to the unions that strangled GM with insane workplace rules, $96 per hour assembly line workers, "Cadillac" health care plans, overly generous retirement packages and vacation time — but you know all about that. And if GM comes public next year, you will have plenty of advanced notice because the media will make the offering headline news for weeks.

Please address your financial questions to Malcolm Berko, P.O. Box 8303, Largo, FL 33775 or e-mail him at mjberko@yahoo.com. To find out more about Malcolm Berko and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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