Berkshire's investment in automaker an immediate boost to
share price; market signal 'unprecedented'
If you can believe Investment News the Buffett-led company
held 10 million shares of the automaker on March 31, Omaha, Nebraska-based
Berkshire said in a filing disclosing U.S. stockholdings after the close of
regular trading yesterday.
“Seems like GM's low valuation is just too good for Warren
to resist,” Adam Jonas, an analyst with Morgan Stanley, wrote in a note to
investors. “While buying 10 million shares of GM isn't a huge bet (yet), the
market signal for the U.S. auto industry is as unprecedented as it is
fascinating.” Jonas titled the report “Buffett Motors.”
The automaker's shares dropped 35 percent before today since
GM's 2010 initial public offering. The Detroit-based company regained its spot
as the world's top-selling automaker last year when it posted a record $9.19
billion profit.
GM is benefiting from a recovering U.S. auto market, on pace
for its best vehicle sales since 2007, and growth in China, where it's the
market leader. CEO Dan Akerson has introduced models such as the Sonic small
car and ATS luxury sedan to push Chevrolet and Cadillac as global brands…..
Read all about it at http://www.investmentnews.com/article/20120516/FREE/120519951
No comments:
Post a Comment