SiriusXM Jumps on Buyout Offer; GM Falls on Weak December Sales

The Dow finished flat on comments from the Fed, while SiriusXM gained after hours on a buyout proposal from Liberty Media, and GM slid on disappointing sales.

Jan 3, 2014 at 10:12PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stocks ended flat today as the Federal Reserve came back into focus on the second trading of the year. The Dow Jones Industrial Average (DJINDICES:^DJI) finished the day up 28 points, or 0.2%, while the S&P 500 fell a smidgen, dropping 0.03%. Investors focused on comments from Philadelphia Fed President Charles Plosser, who said that the central bank faced "immense" challenges now that it had reduced is monthly bond-buying program. Outgoing Chairman Ben Bernanke responded to Plosser's remarks by saying that the Fed was still committed to helping the economic recovery, which "clearly remains incomplete."

Shares of SiriusXM Holdings (NASDAQ:SIRI) were getting a boost after hours following partial-owner Liberty Media's (NASDAQ:LMCA) offer to purchase the remaining outstanding shares in the company. Liberty actually proposed converting all shares not owned by the media company to be converted into 0.076 of a share of Liberty stock. If the deal goes through, current Sirius shareholders would own 39% of Liberty Media. The offer translates into a 3% premium on Sirius's closing price of $3.57, and shares climbed 3.6% in extended trading after the announcement. The SiriusXM board has not yet issued a response to the offer.

Elsewhere, shares of General Motors (NYSE:GM) fell 3.4% as its December sales figures disappointed the market. GM said total vehicles sold fell for the month fell 6.3% from a year ago, to 230,157, even as 2013 sales were up 7.3%. The automaker blamed a lack of sufficient pickup truck inventory at dealerships and aggressive discounting by Ford for the decline in sales. Still, 2013 was a generous year for the auto industry and, as the economy continues to improve both here and in Europe, auto sales figure to pick up steam. At a forward P/E of 8.5, today's drop could present an opportunity to pick up some shares.

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Fool contributor Jeremy Bowman owns shares of General Motors. The Motley Fool recommends General Motors. The Motley Fool owns shares of Liberty Media. and Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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