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Posts Tagged ‘GM stock’

Buffett, Soros Sell GM Shares – But JPMorgan Bank Calls Maker’s Stock “Very Inexpensive”

by on May.16, 2014

GM's stock price has bouced a bit but largely been stuck in neutral over the past three months as the maker copes with its recall crisis.

Investors generally don’t like turmoil or uncertainty – something in abundant supply at General Motors these days, which may explain why the makers share price has been performing so poorly.

Yet even after expressing high hopes for the maker’s new CEO Mary Barra, mega-investor Warren Buffett has sold off a quarter of the GM shares held by his investment firm, Berkshire Hathaway. And he’s not alone. Other major investors, including George Soros’ Soros Fund Management, and David Einhorn’s Greenlight Capital, have abandoned the maker in recent months, selling part or all of their holdings.

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Yet even while cautioning that GM will be taking an earnings hit for its latest series of recalls – six separate service actions covering nearly 3 million vehicles announced this week alone – influential JPMorgan’s auto analyst may have sent the sort of positive signal other investors are looking for.

“We note the recalls are very proactive in nature,” Brinkman wrote in a report to investors. “We see GM stock as very inexpensive.”

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GM Names New CFO, Restores Dividend for 1st Time Since 2008

Moves come as Mary Barra set to become maker’s first female CEO.

by on Jan.15, 2014

New GM CFO Chuck Stevens.

General Motors has named Chuck Stevens as its new chief financial officer, replacing current CFO Dan Ammann, who became the Detroit maker’s new president later this week as part of a broad management shift that sees Mary Barra become the new chief executive officer.

The move was approved by the GM board of directors which also restored the maker’s divided for the first time since July 2008, at a time when it was spiraling towards bankruptcy. Stockholders will receive a 30-cent dividend per share.

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The announcements come just weeks before GM is expected to report its 16th straight quarterly profits, a string that began soon after its emergence from Chapter 11 protection with the help of a nearly $50 billion federal bailout. The U.S. Treasury last month sold off the last of its holdings in the maker – at a final loss of about $10 billion.

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GM Stock Closes at All-Time High

Taxpayer loss on “Government Motors” bailout likely to dip slightly.

by on Dec.03, 2013

GM stock reaches a towering level - but can it hold?

Investors will be watching closely today to see if General Motors can maintain momentum after its stock closed at an all-time high on the first day of December trading – and just weeks before the federal government plans to sell off the last of the shares taken in return for GM’s $50 billion bailout in 2009.

GM stock closed Monday at $39.11, the highest figure since the “new” General Motors was formed in 2009 following the maker’s emergence from Chapter 11 protection.  Shares briefly climbed as high as $39.39 during the day.  The maker’s previous closing record was $38.98 on January 7, 2011.

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GM shares subsequently took a sharp tumble, dipping down into the mid-teens during the summer of 2011. Its 52-week low, meanwhile, was $24.40.  The automaker’s stock has been rebounding this year at a rate notably faster than the overall turnaround of the Dow Jones Industrial Average – which has itself been in record territory in recent weeks, nudging up as high as $16,174.51.

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Buffett Boosts GM Holdings by 60%

Legendary investor rushes in as Treasury continues stock sell-off.

by on Aug.16, 2013

Warren Buffett just increased his GM stock holdings by 60% to 40 million shares.

Even as – and perhaps because of – the U.S. Treasury continues selling down its remaining stake in General Motors, billionaire investment guru Warren Buffett is rapidly increasing his own holdings in General Motors.

According to a federal filing, Buffett’s investment arm Berkshire Hathaway has increased its holdings in the giant Detroit maker by 60%. He now has 40 million shares, or 2.9% of GM’s outstanding stock.

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That news came just days after Treasury officials advised Congress they has sold off around 25 million more shares in GM for a total sale of $876.9 million. The federal government now holds just 136 million shares, a little more than a quarter of the 500-million-share stake it gained after the maker’s 2009 bankruptcy, in return for a $49.5 billion bailout. (more…)

GM May Buy Back More Stock, Revive Dividend

“We’re getting stronger,” CEO Akerson declares.

by on Jun.07, 2013

GM's headquarters at the Detroit Renaissance Center.

General Motors investors have had a lot to celebrate in recent weeks watching the maker’s shares surge, the stock rejoining the influential S&P 500 – and now, with Chairman and CEO Dan Akerson suggesting the maker might be ready to restore the GM dividend for the first time since 2008.

Akerson also is weighing the possibility of buying back more GM shares, a move that could further drive up a stock that has nearly doubled since hitting a low point last July.

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But, “First and foremost we must continue to invest in this company so we don’t lose the competitive edge that we have today,” Akerson told stockholders meeting in Detroit, an event where he declared the company’s bailout and revival a success.

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Treasury Rushing to Sell Off More GM Stock

Maker’s shares gets a bump as it prepares to rejoin S&P 500.

by on Jun.05, 2013

GM stock is showing strong momentum after being in the doldrums most of 2012.

While the Treasury Department’s self-imposed deadline to dump its remaining General Motors stock is still nearly a year away, the government plans to benefit from rising prices by putting another 30 million shares on the block this month.

The announcement comes a day after word came that General Motors will rejoin the closely watched S&P 500 stock index for the first time since it filed for bankruptcy in 2009. The maker’s shares have been surging in recent weeks and are now trading above GM’s November 2010 IPO price of $33 a share.

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The government isn’t alone in seizing a potential opportunity. Another 20 million GM shares will be sold by the UAW Retiree Medical Benefits Trust. Commonly known as a VEBA, it received stock in the wake of the maker’s 2009 bankruptcy.

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GM Rejoining S&P 500

Strong sales, earnings buoy domestic auto stocks.

by on Jun.04, 2013

Investors have been buoyed by strong sales of GM's big trucks - the 2014 version of the Chevrolet Silverado shown here.

Barely four years after emerging from a bankruptcy some thought it might not survive, General Motors is once again being seen as a barometer of the American economy, the maker rejoining the S&P 500, a key stock market index, after the New York Stock Exchange wraps up Thursday trading.

GM will replace H.J. Heinz Co. on the S&P 500, according to the S&P Dow Jones Indices. It comes as the latest in a series of endorsements for the Detroit maker, including recent debt ratings upgrades, and follows a series of strong earnings reports and U.S. sales gains.

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The move is expected to help further boost the share price of GM which has already experienced a more than 25% gain since early April. But it’s by no means alone.  Cross-town rival Ford Motor Co. has jumped by an even greater margin in recent months, as has Fiat S.p.A., the Italian automaker that now owns a controlling stake in Detroit-based Chrysler Group LLC.

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How High is Up for GM Stock?

Maker will rejoin S&P 500 “before too long,” says CEO Akerson.

by on May.20, 2013

GM CEO Dan Akerson delivers the commencement address to Notre Dam business grads over the weekend.

Perhaps it’s just a rising tide lifting all boats, but General Motors stock has hit its highest close in more than two years – beating the $33 a share price tag set during its initial public offering in November 2010.

The resurgence comes as the overall stock market charges from one record to another, but also suggests that investors are impressed by the performance of the giant maker which earlier this month announced $865 million in earnings for the first quarter of 2013.

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Though it has now delivered 3 consecutive quarterly profits, GM is still in the “early innings” of its recovery,” CEO Dan Akerson said over the weekend in South Bend, Indiana, where he delivered the commencement speech for Notre Dame business school graduates.  GM is “on the cusp,” said the executive, of regaining its investment grade debt rating back.  Akerson also suggested in his speech that the maker will rejoin the S&P 500 “before too long.”

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