Kerkorian cuts Ford stake, may sell all shares

UPDATED: 10/21/08 4:20 p.m. EDT


DETROIT -- Billionaire investor Kirk Kerkorian has sold part of his 6.5
percent stake in Ford Motor Co. and may sell the rest as he steers his
investments away from the auto industry.

Kerkorian's Tracinda Corp., which had invested about $1 billion in the
money-losing automaker, said in a regulatory filing that it sold 7.3 million
shares yesterday in the open market for an average price of $2.43 per share.
Tracinda will focus on the gaming, hospitality and oil and gas industries.

"In this bear market, it's easy to make money by buying healthy companies
trading at deep discounts," Shelly Lombard, an analyst with bond-research
firm Gimme Credit, said in a research note. "Who needs the aggravation of
trying to turn around a distressed company in a troubled industry in the
middle of an economic downturn?"

A Kerkorian pullout would deprive Ford of a high-profile supporter of CEO
Alan Mulally's turnaround plan. Ford shares rose 10 percent the day
Kerkorian disclosed his initial 4.7 percent stake on April 28.

The stock has plunged more than 60 percent since June, when Kerkorian, 91,
paid as much as $8.50 a share to boost his holdings to 6.5 percent. The
average price paid by Kerkorian was $7.07, according to Bloomberg News. The
stock closed the day at $2.17, down 16 cents or 6.8 percent.

Tracinda said market conditions and available sales prices will determine
whether it sells all of its remaining 133.5 million Ford shares. It has
contacted an investment banking firm regarding the possible sale.

Last week Tracinda pledged another 50 million shares of casino operator MGM
Mirage as collateral for a $600 million credit line used to buy Ford shares.
The move came on top of 50 million MGM shares used to secure the credit
line.

Troubled markets

Frozen credit markets will dramatically lower U.S. vehicle sales and
increase losses at Ford, a J.P. Morgan analyst said today.

In a note to investors, analyst Himanshu Patel said that for the fourth
quarter, U.S. light-vehicle sales could come in at a seasonally adjusted
annual rate of 10 million to 11 million units. In 2009, industry sales could
be "no better" than 11 million to 12 million, he said.

U.S. auto sales have averaged 16.8 million annually this decade through last
year. For all of 2008, Patel now estimates Ford will lose $3.20 per share,
up from a previous estimate of $3. He projects Ford's 2009 loss will be
$1.90 per share, up from 95 cents.

The automaker's U.S. sales are down 17 percent in the first nine months of
the year, a steeper decline than the industry's 13 percent drop.

Management and board turnover

Last week, two outside directors quit Ford's board, citing the increased
demands of running their own companies. Two weeks ago, Ford said CFO Don
Leclair, 56, will retire Nov. 1 and be replaced by Ford of Europe chief
Lewis Booth, 59.

"We remain confident and focused on our plan to transform Ford into a
profitably growing automaker," Ford spokesman Mark Truby said.

Kerkorian, a longtime activist investor in the auto industry, surprised
analysts and Ford executives with his April announcement that he had begun
to acquire a stake in the automaker. He also became the largest individual
shareholder in GM in 2006. He later sold his shares after failing to force
GM into an alliance with Nissan Motor Co. and Renault SA.

The Ford family holds a 3 percent stake in the company but controls 40
percent of the voting power because of a separate class of shares
established when the company went public in 1956.

Amy Wilson and Reuters contributed to this report

PRESS RELEASE: Tracinda to Focus on Gaming & Hospitality and Oil & Gas
Industries and Reduce Ford Holdings

LOS ANGELES -- October 21, 2008

Tracinda Corporation today announced that in light of current economic and
market conditions, it sees unique value in the gaming and hospitality and
oil and gas industries and has, therefore, decided to reallocate its
resources and to focus on those industries.

Accordingly, Tracinda stated that on October 20, 2008, it sold 7.3 million
shares of the common stock of Ford Motor Company (NYSE: F) in the open
market for an average price of $2.43 per share, before commissions. Tracinda
also stated that it intends to further reduce its holdings of Ford common
stock, including the possible sale of all of its remaining 133,500,000
shares (approximately 6.09% of the outstanding shares), depending upon
market conditions and available sales prices, and that it has contacted an
investment banking firm regarding the possible sale of such shares.

We never could figure out why he made his Ford buy earlier this year. The
handwriting was already writ large. Billy and Mulally must have been very
persuasive. Or really, really, begging.
Ego maybe.
Tough cookies.
Next.

--
Vote for Ponzi - the US economy depends on him!
"rob" > wrote in message
g.com...
> UPDATED: 10/21/08 4:20 p.m. EDT
>
>
> DETROIT -- Billionaire investor Kirk Kerkorian has sold part of his 6.5
> percent stake in Ford Motor Co. and may sell the rest as he steers his
> investments away from the auto industry.
>
> Kerkorian's Tracinda Corp., which had invested about $1 billion in the
> money-losing automaker, said in a regulatory filing that it sold 7.3
> million
> shares yesterday in the open market for an average price of $2.43 per
> share.
> Tracinda will focus on the gaming, hospitality and oil and gas industries.
>
> "In this bear market, it's easy to make money by buying healthy companies
> trading at deep discounts," Shelly Lombard, an analyst with bond-research
> firm Gimme Credit, said in a research note. "Who needs the aggravation of
> trying to turn around a distressed company in a troubled industry in the
> middle of an economic downturn?"
>
> A Kerkorian pullout would deprive Ford of a high-profile supporter of CEO
> Alan Mulally's turnaround plan. Ford shares rose 10 percent the day
> Kerkorian disclosed his initial 4.7 percent stake on April 28.
>
> The stock has plunged more than 60 percent since June, when Kerkorian, 91,
> paid as much as $8.50 a share to boost his holdings to 6.5 percent. The
> average price paid by Kerkorian was $7.07, according to Bloomberg News.
> The
> stock closed the day at $2.17, down 16 cents or 6.8 percent.
>
> Tracinda said market conditions and available sales prices will determine
> whether it sells all of its remaining 133.5 million Ford shares. It has
> contacted an investment banking firm regarding the possible sale.
>
> Last week Tracinda pledged another 50 million shares of casino operator
> MGM
> Mirage as collateral for a $600 million credit line used to buy Ford
> shares.
> The move came on top of 50 million MGM shares used to secure the credit
> line.
>
> Troubled markets
>
> Frozen credit markets will dramatically lower U.S. vehicle sales and
> increase losses at Ford, a J.P. Morgan analyst said today.
>
> In a note to investors, analyst Himanshu Patel said that for the fourth
> quarter, U.S. light-vehicle sales could come in at a seasonally adjusted
> annual rate of 10 million to 11 million units. In 2009, industry sales
> could
> be "no better" than 11 million to 12 million, he said.
>
> U.S. auto sales have averaged 16.8 million annually this decade through
> last
> year. For all of 2008, Patel now estimates Ford will lose $3.20 per share,
> up from a previous estimate of $3. He projects Ford's 2009 loss will be
> $1.90 per share, up from 95 cents.
>
> The automaker's U.S. sales are down 17 percent in the first nine months of
> the year, a steeper decline than the industry's 13 percent drop.
>
> Management and board turnover
>
> Last week, two outside directors quit Ford's board, citing the increased
> demands of running their own companies. Two weeks ago, Ford said CFO Don
> Leclair, 56, will retire Nov. 1 and be replaced by Ford of Europe chief
> Lewis Booth, 59.
>
> "We remain confident and focused on our plan to transform Ford into a
> profitably growing automaker," Ford spokesman Mark Truby said.
>
> Kerkorian, a longtime activist investor in the auto industry, surprised
> analysts and Ford executives with his April announcement that he had begun
> to acquire a stake in the automaker. He also became the largest individual
> shareholder in GM in 2006. He later sold his shares after failing to force
> GM into an alliance with Nissan Motor Co. and Renault SA.
>
> The Ford family holds a 3 percent stake in the company but controls 40
> percent of the voting power because of a separate class of shares
> established when the company went public in 1956.
>
> Amy Wilson and Reuters contributed to this report
>
> PRESS RELEASE: Tracinda to Focus on Gaming & Hospitality and Oil & Gas
> Industries and Reduce Ford Holdings
>
> LOS ANGELES -- October 21, 2008
>
> Tracinda Corporation today announced that in light of current economic and
> market conditions, it sees unique value in the gaming and hospitality and
> oil and gas industries and has, therefore, decided to reallocate its
> resources and to focus on those industries.
>
> Accordingly, Tracinda stated that on October 20, 2008, it sold 7.3 million
> shares of the common stock of Ford Motor Company (NYSE: F) in the open
> market for an average price of $2.43 per share, before commissions.
> Tracinda
> also stated that it intends to further reduce its holdings of Ford common
> stock, including the possible sale of all of its remaining 133,500,000
> shares (approximately 6.09% of the outstanding shares), depending upon
> market conditions and available sales prices, and that it has contacted an
> investment banking firm regarding the possible sale of such shares.
>
>
>

rob added these comments in the current discussion du jour ...

This is making a rare and ideal buy opportunity in Ford stock.
Ford has been hammered down by 75% since summer and to less than
10% of it's value just last year. Alan Mulally has stumbled with
his turn-around plan with cars like the Flex but the fundamentals
of the FoMoCo continue to be strong, arguably the strongest of
the Detroit Three wrt cash, employment/retiree/healthcare
expenses, and productivity. Ford is being unfairly devalued by
the market compared to GM yet it is stronger and has a much
higher percentage gain upside.

GM is also an excellent buy opportunity even though it has risen
some since it's modern era lows just a week or so back. GM stock
isn't likely to gain any ground even if the Chrysler buy-out
firms up, but a stock worth less than 15% of it's most recent
high in the $40 5 or 6 years ago makes it an ideal way to make
large percentage gains with a small investment.

I say "BUY" and have, and I will buy more. But, I wouldn't expect
the imbeciles in this NG to be able to even fathom why the
carmakers should be bought even in this time of economic crisis.

> UPDATED: 10/21/08 4:20 p.m. EDT
>
>
> DETROIT -- Billionaire investor Kirk Kerkorian has sold part
> of his 6.5 percent stake in Ford Motor Co. and may sell the
> rest as he steers his investments away from the auto industry.
>
> Kerkorian's Tracinda Corp., which had invested about $1
> billion in the money-losing automaker, said in a regulatory
> filing that it sold 7.3 million shares yesterday in the open
> market for an average price of $2.43 per share. Tracinda will
> focus on the gaming, hospitality and oil and gas industries.
>
> "In this bear market, it's easy to make money by buying
> healthy companies trading at deep discounts," Shelly Lombard,
> an analyst with bond-research firm Gimme Credit, said in a
> research note. "Who needs the aggravation of trying to turn
> around a distressed company in a troubled industry in the
> middle of an economic downturn?"
>
> A Kerkorian pullout would deprive Ford of a high-profile
> supporter of CEO Alan Mulally's turnaround plan. Ford shares
> rose 10 percent the day Kerkorian disclosed his initial 4.7
> percent stake on April 28.
>
> The stock has plunged more than 60 percent since June, when
> Kerkorian, 91, paid as much as $8.50 a share to boost his
> holdings to 6.5 percent. The average price paid by Kerkorian
> was $7.07, according to Bloomberg News. The stock closed the
> day at $2.17, down 16 cents or 6.8 percent.
>
> Tracinda said market conditions and available sales prices
> will determine whether it sells all of its remaining 133.5
> million Ford shares. It has contacted an investment banking
> firm regarding the possible sale.
>
> Last week Tracinda pledged another 50 million shares of casino
> operator MGM Mirage as collateral for a $600 million credit
> line used to buy Ford shares. The move came on top of 50
> million MGM shares used to secure the credit line.
>
> Troubled markets
>
> Frozen credit markets will dramatically lower U.S. vehicle
> sales and increase losses at Ford, a J.P. Morgan analyst said
> today.
>
> In a note to investors, analyst Himanshu Patel said that for
> the fourth quarter, U.S. light-vehicle sales could come in at
> a seasonally adjusted annual rate of 10 million to 11 million
> units. In 2009, industry sales could be "no better" than 11
> million to 12 million, he said.
>
> U.S. auto sales have averaged 16.8 million annually this
> decade through last year. For all of 2008, Patel now estimates
> Ford will lose $3.20 per share, up from a previous estimate of
> $3. He projects Ford's 2009 loss will be $1.90 per share, up
> from 95 cents.
>
> The automaker's U.S. sales are down 17 percent in the first
> nine months of the year, a steeper decline than the industry's
> 13 percent drop.
>
> Management and board turnover
>
> Last week, two outside directors quit Ford's board, citing the
> increased demands of running their own companies. Two weeks
> ago, Ford said CFO Don Leclair, 56, will retire Nov. 1 and be
> replaced by Ford of Europe chief Lewis Booth, 59.
>
> "We remain confident and focused on our plan to transform Ford
> into a profitably growing automaker," Ford spokesman Mark
> Truby said.
>
> Kerkorian, a longtime activist investor in the auto industry,
> surprised analysts and Ford executives with his April
> announcement that he had begun to acquire a stake in the
> automaker. He also became the largest individual shareholder
> in GM in 2006. He later sold his shares after failing to force
> GM into an alliance with Nissan Motor Co. and Renault SA.
>
> The Ford family holds a 3 percent stake in the company but
> controls 40 percent of the voting power because of a separate
> class of shares established when the company went public in
> 1956.
>
> Amy Wilson and Reuters contributed to this report
>
> PRESS RELEASE: Tracinda to Focus on Gaming & Hospitality and
> Oil & Gas Industries and Reduce Ford Holdings
>
> LOS ANGELES -- October 21, 2008
>
> Tracinda Corporation today announced that in light of current
> economic and market conditions, it sees unique value in the
> gaming and hospitality and oil and gas industries and has,
> therefore, decided to reallocate its resources and to focus on
> those industries.
>
> Accordingly, Tracinda stated that on October 20, 2008, it sold
> 7.3 million shares of the common stock of Ford Motor Company
> (NYSE: F) in the open market for an average price of $2.43 per
> share, before commissions. Tracinda also stated that it
> intends to further reduce its holdings of Ford common stock,
> including the possible sale of all of its remaining
> 133,500,000 shares (approximately 6.09% of the outstanding
> shares), depending upon market conditions and available sales
> prices, and that it has contacted an investment banking firm
> regarding the possible sale of such shares.
>
>
>
>



--
HP, aka Jerry

"Efficiency is doing things right, effectiveness is doing the
right things" - Peter Drucker