Bet the Jockey or the Horse?

Wednesday, May 04, 2005 | 03:54 PM

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.

Wednesday, May 04, 2005 | 03:54 PM | Permalink | Comments (1) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



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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

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