Ticker Shock: GM Goes Begging; Royal Caribbean, Boyd Gaming Party Down
Tuesday's top stories and stocks with potential to move.
Wow, we may actually have an up day, for a change.
Asia was in the green, with the Hang Sang up more than 14%, and the Nikkei up more than 6%. Meanwhile, Europe is showing me some green as well. Here in the US, we're off to a higher open.
General Motors (GM)
General Motors and Cerberus Capital Management have reportedly asked the US government for a $10 billion handout to support the proposed merger between GM and Chrysler LLC.
Seems like good timing, no? After all, better to ask for dough now, in an election season, when there's a chance that politicians may support such an action in the hope of garnering votes.
But will the Feds cough up the money? If they do, I think the stock could pop a bit. But as I've said in the past, even if a deal does get hammered out, I'm not sure the 2 parties will be able to cut costs fast enough. So I'll continue to take a pass on this one.
Boyd Gaming (BYD)
On Tuesday morning, Vegas-based Boyd Gaming rolled out its third-quarter numbers, with earnings from continuing operations totaling $14 million, or $0.16 per share.
Unfortunately, that's about $0.03 shy of what analysts were looking for. I like the company, but my gut tells me to remain on the sidelines here.
At the same time, I want to point out that I think Boyd, at under $4, could ultimately be an acquisition target. But even if I'm right, I don't think the company would be dealing from a point of leverage.
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