GM's second-largest shareholder unloads some stock, yawn
We don't want to bore you with all the financial details, so here's the short and (not-so) sweet of it.Capital Research and Management Co. is the second-largest shareholder of General Motors. At the end of June, they held over 60 million shares of the General's stock, or almost 11-percent. Yesterday, they filed a reduction of that stock with the SEC, which stated that they've reduced their GM ownership to 8.4-percent or about 48 million shares.
The spokesman for the company, Chuck Freadhoff, said that they won't comment on the reason for the sale, but analysts insist that there's no real rhyme or reason to it, just another day at the office.
This does spell a trend for the mutual fund managing firm, as they've unloaded another 33.6 million shares of the automaker earlier this year.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
Avinash Machado 8:43AM (11/14/2006)
So when will Kirk Kerkorian unload some of his stock.
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stan 10:28AM (11/14/2006)
they must have seen new truck line
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gbh 10:52AM (11/14/2006)
Yup, just another day at the office...
They'd dump it all if they could wihtout collapsing the stock price and the company - and they still remember what happened when everyone tried to run out the doors of Enron at the same time.
Since everyone who understands how to read a 10K knows GM is headed for bankruptcy - you'll see institutional investors 'quietly' dumping GM stock in turns, as quickly as they can. ("Nope, nothing to see here, just another day at the office...)
The few brokerages that had GM rated as a 'buy' until recently, did so because they owed Kerkorian some favors and/or the house had holdings they wanted to sell before GM goes tango uniform.
There's a few of the naive (or plants to prop up the stock a bit longer) who are still rating GM a 'hold'.
GM won't be a buy until after it gets it's costs in line with a reorg. And that will only happen in court.
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roadside observer 11:44AM (11/14/2006)
gbh: it's all a big conspiracy, right? Just like the Roswell incident and UFOs at Area 51, right?
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Glenn 11:59AM (11/14/2006)
All I can say, roadside observer, is that if you think gbh is all into conspiracy theories, put your savings account and all of your 401k into GM stock and see whether you get to retire "in comfort" or whether you have to retire in Mexico to try to make ends meet on social insecurity?
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Duke 2:00PM (11/14/2006)
GM Leadership Communications/US/GM/GMC
11/14/2006 11:04 AM
To
GMNA Executive Leadership USA
cc
Subject
Message From Mark LaNeve
Dear U.S. Based Executive,
I am pleased to announce that GM will again be offering a program for U.S. executives to provide preferred pricing to their friends and colleagues. This program will continue to be focused on conquest customers in an effort to help GM meet its sales, market share and financial objectives.
Effective December 1, 2006, the Executive Purchase Programs (LTI and MBand), which allowed you to share your employee discount with friends and colleagues, will be modified. The new program will allow you the ability to offer your prospects a great value through the Supplier Discount for Friends Program.
This program affords us all a great opportunity to expose prospects to our great new portfolio. A portfolio that features the GM 100,000 powertrain warranty, OnStar and Stabilitrak on almost every vehicle, and a great assortment of vehicles that get 30 or more miles per gallon on the highway.
The process for obtaining an authorization is the same. You will need your prospect’s date of birth and last 4 digits of their Social Security Number. Then, just go to www.gmfamilyfirst.com, log in, and click on Supplier Discount for Friends. To determine Supplier Pricing (which is 4.5% above the employee price), you can send your prospect to the website, have them click on Vehicle Shopping in the top menu, and then Supplier Pricing. They do not need a user name or password to access this part of the website.
The current Executive Purchase program will end November 30th, however, authorization numbers will still be good for 6 months from the date that they were obtained. Please utilize the report on gmfamilyfirst to locate additional authorizations if needed this month as no more will be made available.
December is the most important sales month of the year. Let’s close it out on a high sales note by continuing to promote our products to those that would not otherwise consider GM. Push yourself. Make some calls. Send out the emails. Keep talking about our great products, quality, fuel-efficiency and safety.
Thank you for your support.
Mark LaNeve
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rw 3:28PM (11/14/2006)
Let me think here and boy it is hard. If this is correct than this quote "Yesterday, they filed a reduction of that stock with the SEC, which stated that they've reduced their GM ownership to 8.4-percent or about 48 million shares."
Reduced is the key word here folks. So if my grammar is up to par this would be the past tense. They have already sold the shares. So this means that gasp somebody purchased the shares already. So what is the controversy somebody sold stock and somebody bought stock. Damn never heard of that before.
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Mikeeeeeeee 8:04AM (11/15/2006)
This must be a KICK GM ALL THE TIME SITE. If anyone had bought GM 4 monts ago they would have DOUBBLED THEIR MONEY as of yesterday. Not bad for a company that everyone likes to kick.
Yep, all those stock/financial experts must be right!!!!!!!!!!!!
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