Bet the Jockey or the Horse?
Wall Street is all a twitter over 87 year old billionaire Kirk Kerkorian's $31 tender bid for GM.
I'm not looking to only be known as a contrarian, but I find much of today's chatter on this to be a bad joke:
· Tracinda is a 3.9% GM holder; Unless they backed up the truck on Monday, that has not been a wining trade; I suspect Kerkorian is buried in the position (just my guess). Indeed, any purchaser since January 2004 is way under water; Hardly the so-called Smart Money its been described as;
· What did Kerkorian do in the 1980s? (Begins with a G) This smells suspiciously similar to me;
· Kerkorian is no spring chicken - is he planning to oversee a 5 year turnaround plan?
· Unlocking value? GM has an absurd debt to equity ratio (Over $200B in Long term debt) . How much value is there to be unlocked?
· If you really want to build a position, you quietly accumulate shares -- you do not scream out I'M A BUYER @ $31!
I can understand the appeal of betting on the jockey - but not when he is riding on a 3 legged horse.
TrackBack URL for this entry:
Listed below are links to weblogs that reference Bet the Jockey or the Horse?:
I made the comment in today's Market Soapbox.... If Kerkorian is sucessful, GM is getting parted out.... no pun intended.
The Nattering One
Posted by: The Nattering Naybob | May 4, 2005 8:54:29 PM
The comments to this entry are closed.