Billionaire’s Stock Blunder

Frozen car

It wasn’t all that long ago that billionaire Kirk Kerkorian made a significant investment in General Motors Corp. (GM), an act viewed as a sign that things were going to change for the automaker. Now, he is selling some of those shares. As GM’s share price has trended lower, Kerkorian has lost a significant sum of his investment. The stock has lost about half of its market value over the last year.

For its part, GM is taking steps to cut costs. For instance, it is cutting about 30,000 jobs across six assembly plants. It is even suspending contributions to its 401(k) retirement savings plan for salaried workers. For its part, GM is taking steps to cut costs.

You would think that GM was trading at bargain. But when you take into consideration that its lackluster outlook has caused the major debt-rating agencies to lower their ranking of GM’s bonds to junk status, then that valuation takes on a different light.

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My Comment: Now I don’t feel so bad about some my stock market bloopers.

Harvey posing as SantaHappy Holidays To All

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