Tuesday, January 24

GM, Kerkorian Outed by Matias

In my last post I noted that GM showed unusual strength on that big down day on Friday. Evidently much of that strength was due to Kirk Kerkorian's stealthy accumulation of More GM shares on the cheap, raising his stake to 10% of the company.

Kerkorian, rumored to be a dedicated reader of this blog, The Moon and the Sixpence, realized he'd been outed and decided to go public with his activities.

Note the last three bars (elongated) are the Monday, Tuesday and Wednesday just past. Friday, which on most other stock charts is a big red slash, is an almost nonexistent dot on GM's chart.

Why is he buying again?
His latest move may indicate he believes GM is listening to his ideas for improving the company. In a speech to Wall Street analysts this month, Kerkorian's top aide Jerome York called on GM to cut its annual dividend in half and set profitability goals and a timetable for achieving them.

York said Kerkorian was interested in buying more GM shares and was optimistic about its recovery efforts, but he said it was time for GM to get into a "crisis mode."

GM just broke it's intermediate term downtrend. The company will report quarterly and full year results today.

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