hyten1 Posted February 4, 2015 Share Posted February 4, 2015 damn dividend raise, wish they did stock buy back, considering the amount of warrant i own vs the common Link to comment Share on other sites More sharing options...
wbr Posted February 4, 2015 Share Posted February 4, 2015 I only own warrants. My margin loan interest rate would be 3.16% and after tax I would receive $0.95 per share after this dividend increase. Given these metrics I give up about $0.37 per share per year. Ofc if your financing cost and your taxes are lower it could be significantly more attractive to lever up the common. For me it's still ok and even though a higher dividend yield theoretically doesn't make a company more valuable, people like to chase yield and a steady dividend policy makes the stock more attractive to institutional investors. Link to comment Share on other sites More sharing options...
Avyalake Posted February 6, 2015 Share Posted February 6, 2015 New GM? Friendly management and happy workers. http://mobile.nytimes.com/2015/02/05/business/gm-reports-2-8-billion-profit-in-2014.html?referrer= Will this help with UAW contracts up for renewal this year? Link to comment Share on other sites More sharing options...
CorpRaider Posted February 10, 2015 Share Posted February 10, 2015 Story out this morning indicating that hedgies pushing for board seat and $8 bil. buyback. Harry Wilson is going to be their nominee. Seemingly excellent pick; I suspect harder for mgmt. to decline return of capital based on need for "fortress balance sheet" when the guy who brought the company out of bankruptcy is lobbying for it. Link to comment Share on other sites More sharing options...
merkhet Posted February 10, 2015 Share Posted February 10, 2015 Thanks CorpRaider. http://www.cnbc.com/id/102376522 Should be very interesting to have Wilson on the board. Link to comment Share on other sites More sharing options...
CorpRaider Posted February 10, 2015 Share Posted February 10, 2015 Yeah, sorry I took down the link to the story. I thought people might want to get it from their preferred source. I am excited to potentially have him as a board rep. He's already adding value, from my perspective, if he makes management go through a more sophisticated analysis of allocating capital to buybacks versus dividends. Link to comment Share on other sites More sharing options...
merkhet Posted February 10, 2015 Share Posted February 10, 2015 I was wondering about that missing link. :) Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 10, 2015 Share Posted February 10, 2015 Thanks CorpRaider. http://www.cnbc.com/id/102376522 Should be very interesting to have Wilson on the board. a bit more details in this article. http://www.wsj.com/articles/gm-shareholder-seeks-spot-on-board-1423577927?mod=WSJ_hp_LEFTTopStories .... GM said Mr. Wilson represents the Taconic Parties, Appaloosa Parties, HG Vora Parties and the Hayman Parties—together owning 34.4 million shares, or about 2.1% of GM’s stock. (thought these guys owned more but w/e) .... Mr. Wilson’s proposal to repurchase $8 billion of stock in a year would put GM at the low end of its $20 billion to $25 billion liquidity target, the analyst said. Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 12, 2015 Share Posted February 12, 2015 GM Frets Buyback Would Freeze Credit Rating Auto Maker Prodded to Repurchase $8 Billion in Shares by Activists http://www.wsj.com/articles/gm-frets-buyback-would-freeze-credit-rating-1423769167?mod=WSJ_hppMIDDLENexttoWhatsNewsSecond Link to comment Share on other sites More sharing options...
merkhet Posted February 13, 2015 Share Posted February 13, 2015 Ackman had a brief comment on General Motors yesterdayy: http://www.valuewalk.com/2015/02/bill-ackman-harbor-conference/2/ RUHLE: Before we go, do you have a view, Harry Wilson’s name has been in the news, Appaloosa and Kyle Bass trying to get Harry in the mix to push GM in terms of share buybacks. Do you have a view on this, because there’s been a lot of grumbling? ACKMAN: So I think he is a — I’ve met him, Harry. I think he’s very capable. He clearly knows a lot about GM, because he was involved in the restructuring. You know, the — the thing that’s — I’m not a big — I don’t like a thesis predicated on just capital return. So my assumption is that Harry has more up his sleeve than just returning capital to shareholders. Link to comment Share on other sites More sharing options...
gfp Posted February 13, 2015 Share Posted February 13, 2015 Looks like Bass sold almost all his GM? http://www.dataroma.com/m/holdings.php?m=hc Link to comment Share on other sites More sharing options...
hardincap Posted February 13, 2015 Share Posted February 13, 2015 Yes, pretty embarrassing for him to have bought in at the peak, and sold out just before the rally over the past month Link to comment Share on other sites More sharing options...
Picasso Posted February 13, 2015 Share Posted February 13, 2015 And then buy up a bunch of OCN before it got chopped in half. Link to comment Share on other sites More sharing options...
100 Shares Posted February 13, 2015 Share Posted February 13, 2015 I believe Kyle Bass's firm is part of the hedge funds pushing GM to buy back shares, he might have sold his stake in the common stock and reinvested in the warrants which wouldn't show up in the 13F. Update: I stand corrected, it would be on the 13F. Link to comment Share on other sites More sharing options...
usdtor05 Posted February 13, 2015 Share Posted February 13, 2015 monish reports the warrants. Not sure of the rules around this to be candid. Link to comment Share on other sites More sharing options...
wbr Posted February 13, 2015 Share Posted February 13, 2015 They would actually show up in the 13F. For example it has been known for a long time that Pabrai owns a lot og GM warrants. Bass might have exited the position in Q4 2014 and then bought it back in 2015 when he talked with other fund managers? Link to comment Share on other sites More sharing options...
tylerdurden Posted February 14, 2015 Share Posted February 14, 2015 He still had some shares as of dec 31 so through those shares he became part of the investor group perhaps. I saw the total number of shares they represent but didn't see any breakdown. It would be quite unusual for a value investor to sell almost all of his position and then repurchase in a month or so... Anyways, very surprising. Tepper did not make any significant changes in his GM shares.... Link to comment Share on other sites More sharing options...
stahleyp Posted February 15, 2015 Share Posted February 15, 2015 Looks like Bass sold almost all his GM? http://www.dataroma.com/m/holdings.php?m=hc Someone correct me if I'm wrong here, but isn't Bass' only claim to fame was betting on mortgage meltdown? Link to comment Share on other sites More sharing options...
tylerdurden Posted February 15, 2015 Share Posted February 15, 2015 It seems Hayman entered into some return swaps on GM shares; that's why his 13F does not show his real exposure anymore. See below link which shows the details of GM ownership for the investor group looking for the $8b share repo: http://www.sec.gov/Archives/edgar/data/1467858/000146785815000042/ex992noticetogeneralmoto.htm Link to comment Share on other sites More sharing options...
mani2304 Posted February 16, 2015 Share Posted February 16, 2015 GM auto recall http://www.autoblog.com/2015/02/15/gm-chevy-malibu-pontiac-g6-power-steering-recall/ Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 17, 2015 Share Posted February 17, 2015 At GM, Internet Ordering Required a Massive Overhaul Auto maker spent years building internal systems expertise to allow customers to shop online http://www.wsj.com/articles/gm-built-internal-skills-to-manage-internet-sales-push-1424200731?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth Link to comment Share on other sites More sharing options...
Mephistopheles Posted March 2, 2015 Share Posted March 2, 2015 Buffett mentioned this morning that credit standards are starting to loosen in subprime auto. Wells Fargo has recently put a cap on the subprime % of total auto loans it is willing to underwrite - at 10%. http://www.nytimes.com/2015/03/02/business/dealbook/wells-fargo-puts-a-ceiling-on-subprime-auto-loans.html?ref=dealbook&_r=0 Although GM Financial is expanding into prime auto lending, a vast majority of its loans are made to subprime borrowers. I've been tracking its U.S. ABS trusts every month, and the number of delinquencies have been creeping up, for both 30-60 and 60+ days, although not quite as high as levels pre crash. I haven't gone through GM Financial's '14 10-k yet, but I've been a bit concerned about this for some time. What does everyone think of this? Link to comment Share on other sites More sharing options...
jawn619 Posted March 3, 2015 Share Posted March 3, 2015 Buffett mentioned this morning that credit standards are starting to loosen in subprime auto. Wells Fargo has recently put a cap on the subprime % of total auto loans it is willing to underwrite - at 10%. http://www.nytimes.com/2015/03/02/business/dealbook/wells-fargo-puts-a-ceiling-on-subprime-auto-loans.html?ref=dealbook&_r=0 Although GM Financial is expanding into prime auto lending, a vast majority of its loans are made to subprime borrowers. I've been tracking its U.S. ABS trusts every month, and the number of delinquencies have been creeping up, for both 30-60 and 60+ days, although not quite as high as levels pre crash. I haven't gone through GM Financial's '14 10-k yet, but I've been a bit concerned about this for some time. What does everyone think of this? It is concerning but GM financial isn't a large part of it's revenues. $4B compared to $150B of auto sales Link to comment Share on other sites More sharing options...
Lowlight Posted March 3, 2015 Share Posted March 3, 2015 Buffett mentioned this morning that credit standards are starting to loosen in subprime auto. Wells Fargo has recently put a cap on the subprime % of total auto loans it is willing to underwrite - at 10%. http://www.nytimes.com/2015/03/02/business/dealbook/wells-fargo-puts-a-ceiling-on-subprime-auto-loans.html?ref=dealbook&_r=0 Although GM Financial is expanding into prime auto lending, a vast majority of its loans are made to subprime borrowers. I've been tracking its U.S. ABS trusts every month, and the number of delinquencies have been creeping up, for both 30-60 and 60+ days, although not quite as high as levels pre crash. I haven't gone through GM Financial's '14 10-k yet, but I've been a bit concerned about this for some time. What does everyone think of this? It is concerning but GM financial isn't a large part of it's revenues. $4B compared to $150B of auto sales I haven't dug into it enough to speak with any conviction here, but I would say the concern shouldn't be with the size of the revenues generated from GM financial, but the size of their asset base and specifically the subprime auto assets. I know that during the downturn when banks repossessed GM trucks and SUVs they took massive write-downs as loan amortizations had not yet caught up with the significant loss of value that occurred through depreciation (GM was hit the hardest due to their reliance on higher priced, low gas mileage vehicles). You can bet that this would happen again if there was a significant downturn in the auto industry. Adding supply of high-ticket SUVs and trucks onto the market will definitely hinder GM's ability to sell against used inventory. Whether the subprime lending spree over the last few years, and/or the lower for longer lending environment itself will wreak havoc on the auto industry is to be seen. I believe there is definitely room for concern here. Auto paper has traded at ridiculously low levels over the past few years despite the fact that auto loan terms have been extended without a down payment requirement. This isn't to say I believe there is currently substantial risk to GM equity holders, but I do think a lot about whether the current lending conditions in the auto market are sustainable at higher interest rates. The bank regulators are starting to warn about the subprime auto risks. They have been warning about other risks that haven't come to pass yet (leveraged loans and SNCs for one) but, at least these days, when the regulators start to issue guidance, it usually means there is something going on in the market that should make us double check our assumptions. Link to comment Share on other sites More sharing options...
Mephistopheles Posted March 3, 2015 Share Posted March 3, 2015 Buffett mentioned this morning that credit standards are starting to loosen in subprime auto. Wells Fargo has recently put a cap on the subprime % of total auto loans it is willing to underwrite - at 10%. http://www.nytimes.com/2015/03/02/business/dealbook/wells-fargo-puts-a-ceiling-on-subprime-auto-loans.html?ref=dealbook&_r=0 Although GM Financial is expanding into prime auto lending, a vast majority of its loans are made to subprime borrowers. I've been tracking its U.S. ABS trusts every month, and the number of delinquencies have been creeping up, for both 30-60 and 60+ days, although not quite as high as levels pre crash. I haven't gone through GM Financial's '14 10-k yet, but I've been a bit concerned about this for some time. What does everyone think of this? It is concerning but GM financial isn't a large part of it's revenues. $4B compared to $150B of auto sales Yes but there are $25 billion of auto loans on the book, and $8 billion of dealership loans. Link to comment Share on other sites More sharing options...
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