Updated with closing stock price, comments.

The good news is that lots of people are selling their shares in Motors Liquidation ( MTLQQ), which holds the assets that old General Motors didn't want.

The bad news is that for every seller, there is a buyer.

Shares in Motors Liquidation closed Thursday at 39 cents, down 29%, on volume of 72.5 million. In the two days since the stock was relisted under a new symbol after regulators sternly warned that it has no value and no relation to new GM, it has fallen 66%.

Still, some people remain interested, says Aaron Hoddinott, founder and manager director of Pinnacle Digest.Com. in Vancouver, B.C., which advises penny stock traders.

"I really don't think some of my investors understand the situation," Hoddinott says. "From what we've experienced, the majority of the retail investors out there still believe there is potential upside. I don't believe they know what they're buying."

Shares in Motors Liquidation closed Friday at 46 cents, up 17% on volume of 53.8 million, even though regulators have warned that it has no value and has no relationship to the new GM.

"I really don't think some of my investors understand the situation," says Aaron Hoddinott, founder and managing director of Pinnacle Digest.Com in Vancouver, B.C., which advises penny stock traders. "From what we've experienced, the majority of the retail investors out there still believe there is potential upside. I don't believe they know what they're buying."

As for all the words of caution from regulators and from GM, Hoddinott says: "I know they've made a valiant effort -- I don't believe it's gotten through" to the buyers.

In general, the buyers known to Hoddinott are "definitely high-risk, middle-class people in their 20s to early 30s. Usually, the people looking to buy are new investors who are not as sophisticated."

In truth, penny stock investors have far better options than shares in a company that holds a collection of undesirable liabilities and assets, which most certainly provides no value to equity holders and which continues to exist only because the point of mercy-killing in the bankruptcy process has not yet been reached.

Hoddinott says many of the best penny stocks are companies that mine precious metals, with market caps between $20 million and $80 million and plans to begin production and are traded on small exchanges and bulletin boards.

"These companies haven't produced anything yet, but they've spent five to 10 years proving up a resource and they are seeking to bring forward proper financing," he says. Surprisingly, despite tight capital markets, some are finding ways to raise money.

"Don't get me wrong," Hoddinott says. "They are high-risk, definitely not meant for everybody." But an investor with a tolerance for risk might allocate 2% to 3% of a portfolio, he says.

Meanwhile, shares of Ford ( F), the only publicly traded U.S. automaker, closed Thursday at $6.13, up 8 cents.

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