It is never good news when one of your largest and smartest shareholders decides to sell and tell the news media about it before they begin.Dubai International Capital said that it may sell some of its DaimlerChrysler shares. They have 20 million shares which they have held a little under two years, and they are ahead on their investment.The announcement would appear to be a case of momentary stupidity on the part of Dubai. Let’s announce that we may sell a bunch of shares and drive the stock price down. Then, we can sell them for less.Aside from this lapse in judgment, Dubai may be making the right move. Daimler management may be so frustrated with turning around its US unit that investors are worried that the parent’s results may continue to be dragged down.The head of Chrysler has indicated that his job may be on the line.On November 1, forty-five percent of the inventory at Chrysler dealers was 2006 model’s, an unusually high figure if the 2007 need to get onto lots. Chrysler management simply overproduced vehicles into the jaws of poor sales.Someone blundered and Dubai wants out.Douglas A. McInyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Dubai Dumps Chrysler (DCX)
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
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