Behind the wheel.L.A. billionaire Kirk Kerkorian's investment company shocked Wall Street last week with an offer to buy 5 percent of outstanding General Motors shares. The carmaker's stock soared immediately after the announcement in a sign that investors believed Kerkorian would force GM into faster action, management accountability and ultimately a return to profits. But the next day, both GM and Ford shares were relegated to junk status. So the Business Journal asks: Would you buy GM stock? Lawrence Harris Fred V. Keenan Chair in Finance University of Southern California The U.S. News & World Report ranked USC 27th among all universities in the United States in its 2008 ranking of "America's Best Colleges", also designating it as one of the "most selective universities" for admitting 8,634 of the almost 34,000 who applied for freshman admission No industry that has had significant labor troubles has been able to solve those problems outside of bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . The steel companies and the airline companies had substantial pay, health and retirement expenses that could only be eliminated by going bankrupt. I would be extremely surprised if GM could solve those problems outside bankruptcy and it can't stay outside bankruptcy it" it doesn't solve those problems. Accordingly, I would and did short the stock. Kyle <noinclude></noinclude> ''This article or section is being rewritten at One derivation of the surname is from the Scottish Highland word caol, 'channel', or 'strait'. There are other possible derivations (see below). Davis Financial Analyst Houlihan Valuation Advisory I don't pick individual stocks because there's no way that I can know as much about the company as the analyst who is covering it. So, I use money managers or mutual funds. Richard Lichtenstein President/Owner Marathon Communications I might have said yes before Standard & Poor's cut GM's debt ratings to junk bend status. When I think about Kirk Kerkorian Kerkor "Kirk" Kerkorian (Armenian: Քըրք Քըրքորյան) (born June 6, 1917) is an American billionaire, and president/CEO of Tracinda Corporation, his private holding getting a return on his investment, he's probably better off sitting in a Jacuzzi in one of his casinos than buying shares of GM. As for me, I'd rather have my money in real estate than GM stock. Denise Verret Assistant General Manager Los Angeles Zoo The Los Angeles Zoo founded in 1966, is a large zoo located in Los Angeles, California, USA. The Zoo, located in Los Angeles' Griffith Park, is home to 1,200 animals from around the world. I would buy the stock. Mr. Kerkorian's acquisition will continue to increase sales. If he is known for turning businesses around, I would say he is going to balance expenses with revenues and chart a course for the company to move in a positive direction. But cut ting ting n. A single light metallic sound, as of a small bell. intr.v. tinged , ting·ing, tings To give forth a light metallic sound. those kinds of costs can be very challenging, particularly when you're talking about union employees' livelihoods. Health care costs are a huge part of that. Chris Martin This article is about the Coldplay musician. For other people named Chris Martin, see Chris Martin (disambiguation). Christopher Anthony John Martin (born March 2, 1977) is the lead singer, pianist and occasional rhythm guitarist of the popular rock band Coldplay. President, Chief Executive AC Martin Partners Yes, I would buy GM stock, but I would have purchased more shares before Kirk Kerkorian did. When the media and the analysts gave them a beating, it artificially lowered the price. That may have corrected itself now somewhat with the Kerkorian announcement. That said, I still believe GM stock is a good buy. Kjell G. Nyborg Visiting Associate Professor University of California, Los Angeles UCLA comprises the College of Letters and Science (the primary undergraduate college), seven professional schools, and five professional Health Science schools. Since 2001, UCLA has enrolled over 33,000 total students, and that number is steadily rising. Given that the market has had a day to digest Kirk Kerkorian's offer, to evaluate it and reach a consensus regarding GM stock prices, it's doubtful that any abnormal returns Abnormal returns The component of the return that is not due to systematic influences (market-wide influences). In other words, the abnormal returns is the difference between the actual return and that is expected to result from market movements (normal return). Related: excess returns. are to be had by trading GM now. I think it's interesting that GM stock prices closed above his offer. It suggests that other higher bidders may come, GM's performance will improve or Kerkorian will increase his offer. On the other hand, if nothing further happens GM's stock price might fall back to where it was before the offer. Scott Farh Managing Principal of National Real Estate Practice Gumbiner Savett Inc. Yes, if GM is good enough for Kirk Kerkorian then it might be good enough for me, assuming it better positions itself as a leader and innovator in the automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. by producing strong earning prospects and results, as well as maintaining a relatively high dividend yield. Even better on the innovative side would be if they could produce an energy-efficient and environmentally sound car and make lots of money doing so. |
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