It appears that Kerkorian isn't selling Ford because he is bearish but he got what you call an old fashioned margin call.
From Bloomberg: "Kerkorian is unwinding his Ford stake after the value of his $995 million holding shrunk by two-thirds and put his firm's gambling investments at risk.
Last week, Ford's collapsing stock price forced Kerkorian to pledge another 50 million shares of his MGM Mirage casino company to back the $600 million credit line used to buy into the second-largest U.S. automaker."
The bottom is in for autos unless there is a resumption of the great credit collapse. This is classic bottom formation. The peak for US auto was 2000 and since then they have done every financial shenanigan to stay afloat.
The price action shows the full effects of an enema. If Cerberus and Ford want out then you know it's bad, but they thought it was good a year ago, so what do they know? Things are priced for the worst, of course not for a catastrophe, but for the worse economic condition and still have an economy that ploughs ahead.
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