Kirk Kerkorian (described as “the billionaire investor” so often that you’d think it was part of his name) has
decided to spend another $463 million on GM stock, which will raise his stake to nearly 10%. As one fund manager
states, “You’re not buying this because you think management has a good handle on what they’re
doing.” If we look just at the near-term indicators – sales
are down, management refuses to provide profit
guidance, money is lost on each vehicle sold – it
indeed is really difficult to think that anyone would toss a couple billion dollars at the company that’s struggling
and just sit back as a passive observer. Kerkorian has a history of being, shall we say, an active shareholder, so
we’re interested in seeing where all of this leads.
Kerkorian raises stake in GM, again
Kirk Kerkorian (described as “the billionaire investor” so often that you’d think it was part of his name) has decided to spend another $463 million on GM stock, which will raise his stake to nearly 10%. As one fund manager states, “You’re not buying this because you think management has a good handle on what they’re doing.” If we look just at the near-term indicators – sales are down,management refuses to provide profit guidance, money is lost on each vehicle sold – it indeed is really difficult to think that anyone would toss a couple billion dollars at the company that’s struggling and just sit back as a passive observer. Kerkorian has a history of being, shall we say, an active shareholder, so we’re interested in seeing where all of this leads.