GM certainly has had its share of problems. The recent weakness is the stock is due to a tax loss sales by billionaire investor Kirk Kerkorian.
If you own the stock, you need to follow the news very closely. If Kerkorian continues to dump the stock after the first of the year, GM may very well be heading for bankruptcy.
Here are some comments from a Reuters article today:
DETROIT, Dec 21 (Reuters) - Shares of General Motors Corp. (GM.N: Quote, Profile, Research) are expected to fall further in Wednesday trade after hitting an 18-year low on Tuesday, following the news of billionaire Kirk Kerkorian's investment arm selling 12 million GM shares.
GM shares, already down 50 percent this year, fell 2.6 percent in pre-market trade on Wednesday after Kerkorian reduced his stake in the company to 7.8 percent from 9.9 percent late Tuesday.
"Tracinda accumulating a 10-percent GM stake, much via public tender, bred speculation that value-creating strategic changes ... was more probable," Goldman Sachs analyst Robert Barry wrote in a research note on Wednesday.
"Now we expect that sentiment to reverse, at a time when fundamental pressures are growing, option value from UAW deals on healthcare and a North American restructuring is gone, and key restructuring architect, CFO Devine, is leaving."
Las Vegas investor Kerkorian said in a filing with the Securities and Exchange Commission that he sold his stock for $252 million to take advantage of tax savings stemming from his investment losses.
