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Pat Stout  

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  • Cliffs: A Work In Progress [View article]
    PorT_Alex,

    There is a tender offer for the 2018 bonds. Bondholders can decide to tender or not. If bonds are tendered all bonds might not be accepted, due to the tender cap.

    Cliffs is not calling the bonds....
    Jul 31, 2015. 04:07 PM | Likes Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    No clue,

    How did Fannie Mae's share repurchase work out? The cost of treasury stock on the balance sheet exceeds the market cap.

    Did you realize Dell went private for less than the cost of the treasury stock on its balance sheet?

    If your making money with GM, you must be short -- no many long the stock can say they have made money.

    Pat
    Jul 27, 2015. 10:33 PM | Likes Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    No clue.

    <quote> He grades management's actions by the result and not by their process.<endquote>

    That is correct. If the results are sub-par, then the process might be flawed.

    Pat
    Jul 27, 2015. 09:58 PM | 1 Like Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    Workhorse Investor,

    Shouldn't GM with inside information pay "fair" value for its shares, or is it okay for GM to take advantage of shareholders with less information?

    GM might have thought the stock was cheap at $38 when they first purchased, and then when they averaged down to an average cost of $36. The market clearly doesn't agree.

    Teledyne used Dutch tenders and purchased stock ABOVE the market price and ALL investors had the opportunity to tender stock to the firm. fwiw, I missed an option trade by an 1/8 just before the Dutch tenders started.
    Jul 26, 2015. 02:48 PM | Likes Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    Workhorse Investor,

    The shares have not been retired, they could be sold if GM decided the shares were overvalued.

    Investors should be happy spending $1.25 per share to add pennies to the bottom line? Not this GM investor.

    Pat
    Jul 26, 2015. 12:43 PM | 1 Like Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    bryan.b.forsyth,

    How can an investor buy stock when GM is not returning money to owners? The $2.1 billion went to departing owners therefore shareholders were not given the cash that could have been used to increase their income -- more shares with same dividend = more income.

    No -- the argument is that share repurchases do not add shareholder value.

    Would the buyback cheerleaders be happy if GM decided the stock was overvalued and sold the repurchased shares back into the market?

    Share repurchases is short-term thinking. Paying a dividend is longer term thinking. When a firm repurchases shares the remaining investors have more debt per share, making the investment more risky.

    Pat
    Jul 26, 2015. 12:40 PM | 1 Like Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    no clue,

    Paying taxes means having a profit. Sure beats the alternative of having a loss.

    Should investors be happy that the share price is falling? GM is trading below its IPO price. This is after using $2.1 billion of owners money to repurchase shares.


    Pat
    Jul 25, 2015. 11:59 PM | Likes Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    bryan.g.forsyth,

    Income increases buy owning more shares. When the firm repurchases shares that potential income is lost. And so far with GM investor have an unrealized loss.

    Should owners be happy with the failing share price? That seems to be the general feeling of many comments supporting the share repurchase plan.
    Jul 25, 2015. 11:49 PM | Likes Like |Link to Comment
  • General Motors: Down $285 Million On Its Share Acquisition (Repurchase) [View article]
    No clue,

    Don't recall ever owning a REIT or MLP and haven't held a utility stock in years.

    Why would paying a special dividend for anyone to invest in an overvalued market? I'd like to increase my income and buy GM with the special dividend.

    Pat
    Jul 25, 2015. 05:59 PM | 1 Like Like |Link to Comment
  • Cliffs Can't Catch A Break [View article]
    Nazarbaz,

    The bond prices are from the FINRA website.

    http://bit.ly/15cgRUd
    Jul 24, 2015. 06:17 PM | 1 Like Like |Link to Comment
  • GM: $10 Billion Loss In Market Cap; Possible Loss In Auto Sales To Boot [View article]
    ark2,

    Can you name 2 firms that have created shareholder value over say 10-15 years? I will take the market cap (10-15 years ago) add the dollars spent for share repurchase and compare to recent their market cap.

    btw,
    Dell went private for less than the cost of treasury stock on its balance sheet.
    Fannie Mae is worth a faction of the treasury stock on its balance sheet
    over $7 billion versus market cap of $.4.5 billion.
    Source: http://1.usa.gov/1IqEAoH
    Jul 24, 2015. 06:48 AM | Likes Like |Link to Comment
  • GM: $10 Billion Loss In Market Cap; Possible Loss In Auto Sales To Boot [View article]
    ark2,

    Who is talking about a one-time dividend? Not me. Special quarterly dividend rather than repurchasing shares. Same cash outflow, but different allocation -- all to owners.

    When a firm repurchases shares, the ownership of the share transfer to the firm with the exchange of cash.

    I'll make it simple. Firm has 2 shares. A owns 1 and B owns 1. A sells 1 share back to firm. A has cash and no share, B has stock but no cash and Firm has stock and less cash. A is a former owner.

    Pat
    Jul 23, 2015. 09:01 PM | Likes Like |Link to Comment
  • GM: $10 Billion Loss In Market Cap; Possible Loss In Auto Sales To Boot [View article]
    ark2,

    Yes, I plan on reviewing the progress on a quarterly basis. So far, the first two quarters of the share repurchase has seen value destruction of $285 million.

    What metric is used to back the "grossly undervalued" claim?

    fwiw, I'd increase my stake in GM if they would return money to owners rather than giving it to former owners of shares.

    Pat
    Jul 23, 2015. 06:58 PM | Likes Like |Link to Comment
  • GM: $10 Billion Loss In Market Cap; Possible Loss In Auto Sales To Boot [View article]
    bryan.g.forsyth,

    Thanks for the idea, but don't see the need to update daily.

    Though I don't agree a $256 million loss is meaningless, I'd rather have the cash.
    Jul 23, 2015. 12:03 PM | Likes Like |Link to Comment
  • GM: $10 Billion Loss In Market Cap; Possible Loss In Auto Sales To Boot [View article]
    GM reported acquiring 57.6 million shares at an average cost of $36.45. The stock is currently $32.00, making the loss per share $4.45 or $256 million.
    Jul 23, 2015. 10:28 AM | Likes Like |Link to Comment
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