I was so in the money on GM shorts. Then I wake up this morning to have given it all back in one day. Whoa... How can the spread on GM May '05 SSF be 3 POINTS when it's normally like 15cents???
wilburbear: I hope so... I'm still holding short. Long term trend is down until proven otherwise. But now is short-term pain...
Market Pulse: GM upgraded on Kerkorian's plan to increase his stake Wednesday May 4, 1:48 pm ET By Tomi Kilgore NEW YORK (MarketWatch) -- General Motors was upgraded to neutral from sell at Merrill Lynch following Kirk Kerkorian's Tracinda Corp.'s offer to increase his stake in the company to 8.9% from 3.9% by buying as many as 28 million shares at $31 each. "There is no doubt in our mind that Tracinda's interest is not in the auto business, but rather in unlocking value embedded in non-core businesses, including [GM financing arm] GMAC's non-auto subsidiaries," Analyst John Casesa said. His analysis suggests GMAC's non-auto assets could be worth up to $25 a share. "Given Kerkorian's successful track record of unlocking shareholder value, we feel we cannot continue to be a seller of GM and are therefore changing our rating to neutral." The stock, a component of the Dow industrials, was last up $4.33, or 16%, at $32.10.
Translation: Everyone we put into this stock has been bent over and is now screaming at us. Apart from suggesting you cover (neutral rating), all we can say is sorry...
The smell of something brewing had been in the air for a good week or more. On days when GM should have been tanking, it went up. I posted a few times elsewhere over the last week , that the shorts had to have been feeling put upon. They can scheme all they like, but if they are playing on a large scale , it has to show up in the price, as it did. I'm sure this was being gamed for some time now. Too easy.Too obvious. Too bad. Watch your back, they're gunning for ya.
This news was discussed over the weekend about the possibility of Mr. K increasing his shares. To clear up the matter he went ahead and made an official tender offer. No surprise. No skullduggery. No "plots", LOL I think this is a good example for the people who claim that they only watch the charts and trade with the TV off and listen to music while trading. They are technical wizards and they don't need no stinking fundamental information. I was not short but once it stopped going down I would have covered at once. As someone said, "the price tells you all you want or need to know". SteveD
Some of us aren't keyed into the big $ grapevine that gets all this good info days in advance. Come from poor stock. Oh, you want to back that 'talked about over the weekend" up? I need it for my scrapbook.