GM

Drar upp DJIA med c:a +20 punkter av egen kraft. Ford hänger på upp såg jag nu också. 

|StRY| "Caveat emptor. Buyer beware."

Okay, so Standard & Poors stole some of my thunder with the downgrade, but the big surge yesterday can be attributed to an extreme amount of negative sentiment unwinding. How else can you explain the stock surging above the offer price for what amounts to approximately five percent of the shares outstanding?

Just to cite another example of another tender offer made recently, Highfields Capital Management offered to buy Circuit City Stores (CC: sentiment, chart, options) and make the company a privately held company.

Highfields offered $17 per share, but the stock moved above the $17 level for a brief time the day the offer was made, and never made it back above the $16.30 level after the initial two days. The point is that GM moved above the tender offer price while Kirk Kerkorian is only trying to buy five percent of the outstanding shares. Highfields was offering to buy all shares and the stock could not maintain above the offer price.

schaffers