Kerkorian Unloads General Motors While This Author Still Holds On

Dec. 1.06 | About: General Motors (GM)
Last week I speculated Kirk Kerkorian was unloading his position in General Motors (NYSE:GM).

Now he has.

The Wall Street Journal has an excellent feature article on this development -- and recaps the entire Kerkorian-GM saga.

Kerkorian's Tracinda Corp. reportedly sold its remaining 28 million shares to the Bank of America (NYSE:BAC) for $29.25 a share. The previous two stakes sold -- 14 million shares each -- were in private transactions for $33 and $28.75 a share, respectively.

This news, along with the GMAC deal closing, clearly has CEO Rick Wagoner and GM management popping corks and howling with delight. Whether their celebration will be short-lived or not remains to be seen.

For this GM shareholder, nothing changes. I am still holding my stock. I don't know what the stock price will do in the near term, but I am confident it will appreciate over the long term.

I've held the stock for less than two years, though with the relentless GM-is-falling-and-it-can't-get-up news reporting it seems like forever. Let's see what the price turns out to be in 2007, 2008, 2009.

My bet is that the road for GM and its shareholders will be much smoother then.

GM 1-yr chart

GM 1-yr chart