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Had to sell some but will buy back in if it dips below $2.90
Time to take $2.95 out and move to $3
Friday is usually green for FMCC and FNMA. We will probably see another green day tomorrow.
From this week, many Facebook (FB) users may see their News Feeds fed by Facebook's advertisement videos. The company has announced that from now on, the company will feed the advertisement videos to the users' News Feeds. These videos will run the same way as the videos shared by the friends run in News Feeds i.e. the advertisement videos will play automatically without sound on users News Feeds, and the user will have to scroll or swipe over the advertisement if the user wants to stop the video from playing.
Test launch:
The company mentioned that this is a test launch, and only the limited set of advertisers with specific needs will have the access to this advertising format. To begin with, the company will work with Summit Entertainment and Mindshare to promote a series of videos for the upcoming film, Divergent. The reason cited behind the introduction of this auto-play video advertisement format is the recent growth in the user interaction with the auto-play videos, which are shared through News Feeds between friends/users.
As mentioned by the company:
Through the course of this test, we've seen a more than 10% increase in people watching, liking, sharing and commenting on videos. It's a better experience for people and it's leading to increased engagement.
The company has been offering this service since September to its users, and now the company is willing to put it under commercial use.
Conclusion:
Not a user friendly move:
The company mentioned that people/users will discover more great content in their News Feeds through these fed-in advertisements. As mentioned by the company:
From launching new products to shifting brand sentiment, this video format is ideal for marketers who are looking to make a large-scale impact, and for people who will discover more great content in their News Feeds.
However, feeding auto-run video advertisements to the users' News Feeds is not a user friendly move. News feeds was initially developed as a platform to share feeds from friends and to track the activities of the friends. The users are used to have a total control over their News Feeds.
News Feeds are increasingly becoming a "news and advertisement" feeding platform, which is equally controlled by the company and the user. So, the users will further lose the control of their News Feeds and will have to counter with unsolicited videos that run automatically. The user will have to interact with the video even if the user wants to stop it. This can affect the user experience significantly and will also utilize the users' resources like data and bandwidth.
Success:
From the commercial point of view, this type of advertising format is among the best revenue generating formats. This format offers highest user interaction with the advertisements, because the user will have to interact with the advertisement even if he or she wants to close it. Further, if the user found the video interesting, then they will have to interact with the video, as the video auto-plays without sound and needs user action to turn-on the sound. So, it's an ideal format for advertisers, as it gathers highest user attention, which is a key criterion for the success of any marketing /advertisement effort. The company also introduced the format for mobile advertisements.
Growth in video and mobile advertisement market:
Due to the proliferation of video capable, Internet-connected devices along with the availability of high data transfer speeds, the online video advertisement market is one of the fastest growing advertisement markets. The online video advertisement market is expected to grow at a rapid pace in the next few years. Moreover, due to the rising use of smartphones and availability of quality apps mobile advertising is also growing at a rapid pace.
Current size and past growth:
According to IAB Internet advertising revenue report, both mobile and video advertisement segments were the fastest growing segments of the digital advertisement market for last few years (see the table below).
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Future growth:
According to Frost & Sullivan, the worldwide digital video advertising market has increased from approximately $3 billion in annual spend in 2010 to approximately $5 billion in 2012. The market is further expected to grow to approximately $15 billion in 2016, representing a CAGR of over 30%.
Focusing more on monetization:
This move by the company shows that the company is increasingly focusing on the monetization of its user base. This is a welcome shift in the company's strategy. The company already has a huge user base that is unmatched in the industry, and this is the right time to focus on revenue growth rather than just on the user growth.
Undoubtedly, the format will bring huge commercial success for the company, but the company will have to limit the number of video ads (feeds) to a reasonable extent so that the users do not get annoyed with this format. All in all, an excellent development, which will further monetize the company's huge user base. Many users may not see this as a good practice, but for investors it's the best practice, as it will accelerate the financial growth of the company.
Disclaimer: Investments in stock markets carry significant risk, stock prices can rise or fall without any understandable or fundamental reasons. Enter only if one has the appetite to take risk and heart to withstand the volatile nature of the stock markets.
This article reflects the personal views of the author about the company and one must consult its financial adviser before making any decision.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Climbing back up! Let's close green today!
We will probably be at $3 by power hour.
The rise didn't last that long today. I rather have a steady slow rise than a jump up than back down.
If you bought General Motors (GM) stock last December 2012, your investment would have nearly doubled as the stock price last December 18, 2012 closed at $25.49 while the stock price hit $40.04 on Dec 13, 2013. The company prides itself as one of the leading designers, manufacturers, and sellers of trucks, crossovers, cars as well as automobile parts across the globe. It works through various distribution channels and serves customers including commercial fleet customers and governments. The gradual stock appreciation is a major win for this American automaker company which also recently announced the induction of its first female CEO, Marry Barra. Barra will be replacing Dan Akerson who will be stepping down in January 2014.
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Source:finance.yahoo.com
The revenue for the company grew by almost 2 billion in the third quarter of 2013 versus 2012, driven primarily by favorable customer demand for the Chevrolet brand. However, the company still recorded a lower net income due to a significant outlay under special items and other incremental expenses. The special items cover the Venezuela currency devaluation, buy-back of Korea shares, Goodwill impairment charges, and insurance expenses. For December 2013, the price/earnings is recorded at 12.2 which is lower compared to the industry average of 13.0.
Going Through the Grind
General Motors has made major decisions this year which will impact its bottom line not only in 2014 but even beyond. The decision to sell the remaining 8.5% of its stake in Ally's Financial is expected to boost the company's profitability by $0.5 billion in the last quarter of 2013. Ally's Financial, the lending arm of General Motors was sold for $0.9 billion just last week. The decision was made after careful analysis of the company's contribution to the overall business result which proved to be dismal. While the funds previously tied to Ally Financial can now be used to support other initiatives affecting core operations, Ally Financial will continue to provide financing to General Motors customers and dealers in the United States.
Another strategic move for the company is the sell-off of the remaining 7% stake in PSA Peugeot to institutional investors via private placement. The sell-off will not affect the alliance between the two companies as they will continue to utilize PSA platforms in developing existing and new product lines. The synergy of the two companies' technology and financial capability is estimated to grow to about $1.2 billion by 2018.
Lastly, the company has announced its plan to cease its manufacturing operations in Australia by 2017. The appreciation of the Australian dollar versus the US dollar alone from $0.50 in 2001 to $1.10 in 2013 increased any cost component including labor and energy cost in the country by as much as 65%. This, coupled with a relatively small local market, supported the decision to completely relocate its manufacturing activity. A national sales company will be created in Australia and New Zealand to continue supporting the local market and soften the impact of the 2900 jobs which will be taken out of Australia in the next four years.
A Brighter Future Lies Ahead for General Motors
The company is currently at execution phase. The key decisions it is making at this time will have repercussions in the coming years. Mary Barra is known to be an advocate of streamlining General Motors product lines across the globe and has been known to push General Motors to create high quality cars. The equity divestiture for Ally Financial and PSA Peugeot will have immediate gains in this quarter but the value of the divestiture will still transcend in the coming years as the company is able to reinvest its cash to its core operations. The returns from moving manufacturing operations out of Australia will still be realized in the next 10-15 years.
General Motors results for the past year were not impressive and its valuation puts it as slightly overvalued. Its balance sheet also put it at a leveraged level with a debt-equity ratio of 85.98. However, recent decisions made by the company have strong implications affecting its profitability in the coming years. As one of the "Big 3" automakers with a market capitalization of 57.56B, the company has greater room for expansion and growth potential which it is just starting to capitalize.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
GM to offer Korean workers retirement; to mull dividend
03:47 AM ET · GM
GM (GM) intends to launch a "voluntary retirement" scheme to its 6,000 salaried workers in South Korea next year as it prepares to significantly scale back Chevrolet sales in Europe, a major market for cars that the company manufactures in Korea.
The headcount reduction would be the fourth round of job cuts in the country since 2009.
The news follows GM's decision to end production in Australia but to invest $1.3B in U.S. plants.
Meanwhile, outgoing CEO Dan Ackerson said the carmaker could consider paying a dividend next year.
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GM to make large investment in U.S. plants
12:40 PM ET · GM
General Motors (GM +2.6%) announces it will invest close to $1.3B to update plants in Michigan, Ohio, and Indiana.
The investment will go in part to help the automaker build a new 10-speed transmission and increase production capacity on V6 engines.
Reps with the UAW were in a giddy mood at GM's announcement event in Flint, calling the development a triumph of collective bargaining.
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This quarter will be a killer with Instagram introducing video sharing and holiday advertising in both FB and Instagram.
The Detroit Bear (not surprisingly) loves the automotive industry. Not that I'm the biggest "car" guy, but our family owns a variety of GM and Ford vehicles and I can at least change the oil and flat tires.
My top stock pick for 2014 is without a doubt Ford (F), but after doing some more research, I think GM (GM) is a great investment too. Let's take a look at why I think shares can rally 40% in 2014.
Catalyst #1 - Mary Barra
I'm not one to advocate diversity for diversity's sake; rather, I like to see the best manager in charge when I look at investment opportunities. That being said, GM's incoming-CEO, Mary Barra, looks like the best person to run the company.
There's no question that the story behind her rise at GM is awesome. Her dad was a GM lifer, working as a die maker for 39 years. She's been around cars her whole life. At age 18, she joined GM to pay for tuition at the General Motors Institute, starting at Pontiac. She's worked for GM for the past 32 years.
Great story aside, her tenure at GM has been fairly successful. When she led the HR division, Barra famously allowed employees to start wearing jeans. This was in 2009. Barra also reduced the amount of reports HR needed to create by 90%. Neither of these addressed GM's major issue, poor cars, but it did address another huge problem at GM: old school bureaucracy. By slashing reports and reducing the dress code, Barra empowered employees by providing more autonomy.
Alan Mulally has showed us how important a corporate culture can be during his tenure at Ford. Though Mulally made some wonderful maneuvers to keep the company financially viable, most seem to agree that the One Ford plan is a major driver of Ford's success. Mulally made Ford into a cohesive team. I think Barra wants to do the same.
Perhaps my favorite story about her tenure as the head of GM's global supply chain and product development is her saying, "no more crappy cars." Pensions, labor, and bureaucracy aside, poor vehicles were responsible for GM's mid-decade demise. GM's made some progress after eliminating Saturn, Pontiac, and Oldsmobile, but I think the firm has some work to do stylistically and from a product quality standpoint. Barra knows this, and she has the character to admit it.
Catalyst #2 - The US Auto Market
I wrote about this fairly extensively in my Ford write-up, but it (obviously) holds true for GM as well. Sales dipped in September and October, but recovered strongly in November, posting a North American light vehicle SAAR of 16.1-16.3 million units. GM actually outperformed Ford in November, with unit volumes jumping 14% and retail sales up 19%. Admittedly, GM's November of 2012 was pretty weak, so the company faced a fairly easy comp. Nevertheless, with gas prices moderating, GM's superior SUV lineup looks much more tempting to buyers than it did just a few months ago.
Catalyst #3 - Product Refresh
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Before Ford unveiled its new Mustang, GM unveiled the new Corvette Stingray. Sales of the Corvette haven't been great over the past few years, especially now that many buyers prefer foreign luxury cars. Corvettes are sort of a family tradition, so you can consider me slightly biased in this respect, but I think the 2014 model looks amazing. It's also the best performance bang for your buck. The car keeps many classic styling elements, but provides a fresh, updated look should invigorate younger buyers without alienating older purchasers.
Even if the Corvette doesn't sell particularly well, GM refreshed 18 models for the 2014 model year, which should boost average selling prices and profitability. The new Silverado and Malibu saw sales increase 12% and 40%, respectively, in November. Sales of the new Cadillac ATS and XTS have surged year-to-date. The wave of new buyers who are flooding dealerships are going to be attracted to GM's fresh models.
Of course, there's no guarantee that the new models will be successful, and, in my opinion, the Fusion will continue to outshine the Malibu. I doubt GM will take share from Ford, but Hyundai, Kia, and Honda could all lose out to new and improved GM vehicles.
Catalyst #4 - Operating Margin Improvement
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The above chart shows GM's solid EBIT margin expansion throughout 2013. North American EBIT margins also recently peaked at 9.3% of sales, up significantly from the 6.2% EBIT margin achieved during the first quarter. Due to the significant operating leverage in the automotive business model, higher sales should push EBIT margins even higher in 2014.
In fact, I think investors can expect GM to earn EBIT margins in excess of 7% in 2014, which would lead to significant earnings expansion and cash flow generation. EBIT margins on par with Ford globally should be achieved in 2014, especially now that the company plans to eliminate Australian production. Barra, head of global sourcing, probably has some other plans to help permanently increase operating margins.
Catalyst #5 - Buybacks and Dividends
This is the one investors have been wanting for several years. After exiting bankruptcy, GM has a strong balance sheet, and even earned an investment grade rating from Moody's. The US Treasury is gone, so GM now has the all clear to return capital to shareholders.
Investors are clamoring for a dividend, and CFO Dan Ammann has hinted that returns of capital are on the way. I believe GM may opt for a small dividend and a buyback program in order to prevent the company from stretching itself financially. GM, however, does have a considerable amount of automotive cash at $26.8 billion.
Todd Combs and Ted Weschler, Warren Buffett's portfolio management protégés, have bought nearly 3% of shares outstanding. Given other holdings they have bought, including DirecTV (DTV), Dish (DISH), and Visa (V), I think the boys from Berkshire (BRKA) are expecting GM to be a cannibal rather than a dividend payer. I'm not suggesting that they have insider information, but I am suggesting that they're better investors than I am, and I suspect they are anticipating a buyback.
The Risks for GM
GM isn't a risk-free investment by any means. For one, the rivalry between US auto sellers can create an environment that encourages slashing prices to win market share. In the event that this occurs, GM's operating margin won't expand, or worse, it will decline.
GM also faces a large risk on the sales side: gas prices. Ford and Toyota have much more attractive fuel efficient small cars than GM, and when gas prices rise, consumers tend to value fuel efficient vehicles. GM has a fantastic lineup of SUVs, but sales of GM's bread-and-butter products are posed to struggle in the event of higher fuel prices.
Further, unlike Ford, which expects to be profitable in Europe by 2015, GM will probably burn several hundreds of millions of dollars in the region over the next few years. GM lost $200 million in the region during the third quarter, and the automaker depends completely on improving macroeconomic conditions to turnaround its flounder Opel brand.
While not an operational risk, GM could also "pull an Apple" and decide to kick the tires on returning capital to shareholders. Investors may get frustrated and sell shares, though ultimately, this does nothing to change the underlying value of GM.
What is GM Worth?
Assigning GM a 12 earnings multiple on fairly conservative 2014 earnings of $4.65 per share yields a price of $56. Even if GM only garners a multiple of 10, that equates to a share price of $46.50. A return between 16-40% is pretty fantastic in just 12 months, and I think 40% is fairly easily achievable.
Unfortunately, I think GM sells a fundamentally weaker product than some of its competitors, though I think Barra might be able to fix some of GM's deficiencies. My portfolio is heavily concentrated in autos, with Ford and Fiat (OTCPK:FIATY) constituted a large weighting, but I'm interested in buying some shares at this price, and I may do so.
Disclosure: I am long F, OTCPK:OTCPK:FIATY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Less than a month back, Snapchat, reportedly turned down a $3 billion offer from Facebook (FB). Snapchat is an online photo/video massaging platform, which is gaining huge popularity due to some unique features like limited sharing, auto deletion of massages, unique photo filters, etc.
Now, nearly a month after rejection, Facebook has entered the online photo/video massaging services segment on its own. It has introduced a new service through Instagram. Instagram is a popular photo sharing platform, which was acquired by the company for $1 billion. The new service has some features that can offer the users, to some extent, a Snapchat like experience.
The new service:
On 12 December, 2013, Instagram launched a service named Instagram Direct. Instagram Direct is a new massaging service that allows its users to send photo and video messages. The service allows a user to send a picture/video as a massage or embed with a massage. The features of the service that makes it a competitor of Snapchat includes:
It's a private photo or video massaging service, and any massage can only be send to a limited number of Instagram users (up-to 15 users including followers and non-followers).
Only the sender and recipients can see the photo/video along with embed massage as the photos or videos sent through Instagram Direct can't be shared through Instagram to other sites like Facebook or Twitter (TWTR).
The service provides real-time updates for the comments and likes related to the photo/video.
Moreover, the sender can anytime delete the photo or video sent from Instagram server and make it unavailable to the recipients.
Instagram Direct snapshots (click to enlarge)
Reasons behind the launch:
Though, the company does not mentioned it specifically but it is quite clear that the company is introducing such a service to capture the growing demand of private photo and video massaging services, which allow the sender to have a control on the massages even after the recipients received the massages. The rising popularity of this kind of service is evident from the fact that the company reportedly offered $3 billion to Snapchat.
Snapchat is probably the most popular private photo/video massaging platform. Snapchat users process 400 million Snaps* (photo and videos) per day as compared to Facebook users who uploads around 350 million photos per day. There may be numerous doubts about the methods that how these numbers are collected and what they actually contain. But one thing is sure that the sender controlled private photo/video massage services with limited access are gaining popularity and the users are increasingly looking at it a as different service rather than just a photo/video sharing services. Moreover, this also means that users will share much more of their content if they get more control of their content.
*The photos and videos sent/shared as massage via Snapchat are known as "Snaps".
Conclusion:
The service is expected to get instant popularity due to the huge user-base of Facebook and Instagram. The recent failed attempt of the company to acquire the Snapchat will give the service enough media attention to further fuel the popularity. As the company reportedly offered $3 billion for Snapchat, thereby it is easy understand the importance for the service for the company. The launch of the new service also showed the company is well prepared to adjust according to rapidly changing industry trends and is ready to learn from others. The service will offer multiple benefits to the company as it will help the company to retain its user-base and will also attract new users. The service will evolve with the time and will contribute to the growing popularity of the photo/video messaging services.
All in all, the reported rejection of the offer by Snapchat saved billions of dollars for the company and prompted it to move ahead on its own to build its own photo/video messaging features. The company is all set to compete in the fast evolving photo/video messaging, and with its huge user-base the company can easily become a serious contender in the segment in a quick time. Good news for investors, but for competitors it only means some more competition from the social media giant.
Disclaimer: Investments in stock markets carry significant risk, stock prices can rise or fall without any understandable or fundamental reasons. Enter only if one has the appetite to take risk and heart to withstand the volatile nature of the stock markets.
This article reflects the personal views of the author about the company and one must consult its financial adviser before making any decision.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Another great day for FB
General Motors to make manufacturing announcement on Monday
03:13 PM ET · GM
General Motors (GM +0.3%) isn't done with its string of dramatic announcements quite yet.
The automaker sent out a media advisory today indicating a "significant" manufacturing development will be disclosed at a media event scheduled for Flint on Monday.
Recap of GM's busy week
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I think we will be above $53 during power hour.
This morning Facebook (FB) shares took off after its subsidiary, Instagram, announced its latest feature, Instagram Direct. Instagram Direct will allow users to send private picture messages and discuss them with up to 15 others.
In September, just before announcing its launch of paid advertisements, the photo-sharing company told the Wall Street Journal it had over 150 million monthly users. In today’s release co-founder Kevin Systrom claimed that over half of them are on the app every single day. When you have 75m+ users using your app every day, advertisers will pay a pretty penny to reach them. While 150 million users is no small change, the app still has much more room to grow into. Parent company Facebook touted an impressive 1.19 billion active users as of September, 2013. With such a gigantic base of users and continued development of new features, prospects for revenue and earnings growth are looking robust, but the Wall Street expectations don’t match up to hedge fund forecasts.
Throughout 2013 sell-side analysts that make up the Wall Street consensus have consistently underestimated the growth rates of social media companies. Looking forward to the next 2 earnings reports we see further evidence of Wall Street under-representing the market’s expectations for Facebook. The information below is derived from data submitted to our platform by a set of Buy Side and Independent analyst contributors.
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Our consensus is more accurate than Wall Street 69.5% of the time because it represents unbiased market expectations. By tapping into a wider distribution of over 3,300 contributors including hedge fund analysts, asset management firm analysts, industry experts, and students we are better able to capture the true market outlook.
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Looking forward to the next 2 earnings periods buy side and independent analysts are expecting Facebook’s earnings, including the new revenue stream from Instagram, to exceed the sell-side’s expectations for a third and fourth straight quarter. In the upcoming FQ4’13 report which is expected at the end of January the Wall Street consensus and our community are expecting similar numbers to be posted. For the next quarter out, FQ1’14, there is a much bigger differential in the expected EPS. The magnitude of the difference between the Wall Street and our consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market. Our quantitative research suggests that an upwards pre-earnings drift is associated with approaching an earnings report with a large differential between ours and Wall Street expectations as we are seeing for FQ1’14.
Our community seems to agree that Facebook will be no exception to the recent trend of social media companies beating Wall Street expectations.
I'm thinking it will go pass $3 this time
The talk of dividend is back!
General Motors roundup: Overhangs weaned, Barra and dividend on tap
01:31 PM ET · GM
There's a little bit of buzz in the air over General Motors (GM +0.1%) as it continues to peel away some of the issues (Peugeot, Ally Financial, South Korea, Uncle Sam) seen as potential overhangs.
Detroit insiders say new CEO Mary Barra has the chops to take GM to the next level as they applaud the inside hire. Though only 51 years old, Barra went to college at the General Motors Institute (Kettering) and has worked at GM for 33 years with engineering and global product development in her background.
In China, GM just passed 3M vehicles sold this year to mark the first time it has reached that level. Through its various joint ventures, GM has increased market share in China.
Investors like all the above, but are also eyeing GM's $37B in liquidity than can easily support a dividend. Susquehanna says the options market are already pricing in a $0.52/share annual dividend for 2014.
GM exits Ally Financial
11:10 AM ET · GM
General Motors (GM +0.7%) has sold its approximate 8.5% stake in Ally Financial for $900M reports Bloomberg, and expects to record a gain of $500M.
The plan to sell Ally in a private placement had been reported last week, and the execution comes in the same week as the Treasury exited the rest of its position in the automaker.
The government remains the majority owner of Ally - formerly GMAC - which no doubt has its own IPO plans ... timing to be determined.
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Instagram Direct, a new service being launched at the mobile photo-sharing platform's NYC event (previous), allows Instagram (FB +3.9%) users to privately send photos and videos to up to 15 users. The photos can be accessed via Instagram's main feed, and are complemented by a group chat feature.
Om Malik previously reported Instagram was prepping a private messaging service. Though much attention is being given to how Direct compares to Snapchat, which Facebook reportedly tried to buy for $3B+, it's arguably more a response to the rise of mobile messaging platforms such as WhatsApp, Kik, Line, and Viber, particularly in international markets.
Those messaging platforms are viewed as a threat to Facebook's mobile engagement rates, particularly as they develop app/services ecosystems around them. WhatsApp alone has 350M+ monthly active users (MAUs); Instagram reached 150M in September, and Facebook proper is at 1.19B.
Direct is also arguably a response to Twitter (TWTR -1.3%), which recently updated its apps to support private photo-sharing, and to place greater emphasis on private messaging in general. Twitter also recently began showing image previews in its Timelines.
Instagram hasn't announced a printing service, as was expected by many.
Previous: Instagram focused on discovery, international growth, ecosystem
FB is climbing AH!
Facebook, Alliance Data, Mohawk joining S&P 500
05:24 PM ET · FB
Better a week late than never. Facebook (FB) will be joining the S&P 500 following the Dec. 20 close, and will also be added to the S&P 100. The social networking giant is replacing test equipment vendor Teradyne (TER).
GM's master plan continues to unfurl
02:09 PM ET · GM
The dizzying week for General Motors (GM -0.8%) after its announcement of a fresh CEO, global cutbacks (South Korea, Australia, Chevrolet in Europe), and imminent exit by the Treasury Department as an investor gets even more interesting as it reveals one of the biggest goals of all for the company.
The automaker plans to make a serious push in Indonesia where Japanese automakers (NSANY, TM, HMC, MZDAY, SZKMY, FUJHY) outsell it by a huge margin and its market share is just a shade over 1%.
In a clever move, GM has been watching what works for rivals in Indonesia before deciding which segment to jump into and who to partner with in the country of 247M people.
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Treasury exits rest of GM stake
Yesterday, 04:33 PM ET · GM
The U.S. government has sold the remainder of its stake in GM, with the final sale netting $9.2B. Out of $51B Treasury invested in the automaker, it recovered $39B.
Shares +1% AH following a 1.8% gain the day's regular session.
Treasury confirms GM exit, shares +1% AH
04:27 PM ET · GM
The Treasury department confirms it's selling its remaining 31.1M GM shares. The department says it recouped $39B from its original investment.
The sale will put an end to restrictions on executive pay, and could pave the way for dividend/buyback announcements.
Previous: GM gains as Treasury exit could be imminent
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GM gains as Treasury exit could be imminent
12:28 PM ET · GM
General Motors (GM +2.3%) is an outlier to the upside in the auto sector today - hitting a new 52-week high amid a WSJ report, the Treasury could exit the rest of its stake (31.1M shares) as soon as this week. North America boss Mark Reuss expects a boost in sales thanks to the return of some customers who shunned "Government Motors" in wake of the bailout.
The government exit will allow GM to immediately adjust executive pay, which should boost the recruitment and retention of key talent.
Separately, the company says it is moving some call center ops back to the U.S. to hopefully improve interaction with customers. About 300 workers and 35 managers will be employed at a new "customer engagement center" in Warren, MI. The jobs are coming from the closing of a call center in Argentina.
Earlier: GM to cut South Korean output; end Australian production.
There we go! We've been moving sideways for awhile. It's time to start moving north.
More green days ahead.
This will probably rebound hard next week. Looking to close green today and than multiple green days next week. :)
Facebook reportedly set to buy Indian Android app tool developer
12:53 PM ET · FB
The Business Standard reports Facebook (FB -0.6%) is in talks to buy Little Eye Labs, an Indian startup that has developed tools to monitor/analyze Android app performance, and troubleshoot problems. Sources state a deal is expected to be announced over the next few weeks.
If it happens, the acquisition would strengthen Facebook's efforts to evolve into a de facto platform for developing mobile and Web consumer apps, social-themed or otherwise.
Those efforts received a major boost earlier this year through the acquisition of popular mobile/Web app development tool platform Parse. They were later strengthened by Facebook's purchase of Onavo, whose mobile utility apps generate mountains of valuable data for third-party developers about how their apps are used.
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Got some more shares at this level. :)
The market is down but ZNGA might close green.
Oops. I was posting on the wrong message board
Xbox one and PS4 is out today. I tried going to Target and they are all sold out.
Back on track to multiple green days
Nice come back!
I wish I had more powder to catch the dips.
Weeeeee!
Nice shake! Moving back up.