DaimlerChrysler Shares Speed to Six-Year High as Chrysler Sale Looks Imminent
Daimler- Chrysler (DCX) received a much needed jumpstart today, after word that the German company might be close to selling it’s ailing US arm for $5 billion. The alleged buyers are Magna International (MGA), and a private equity firm. After losing more than $1.5 billion last year it appears Chief Executive, Dr. Z may be ready to throw in the towel. Should you buy shares of DCX on hopes of a graceful German exit?
CNBC’s Auto and Airlines Reporter, Phil LeBeau, joins the guys for this conversation. He says selling Chrysler is a smart move for Daimler and thinks a sale will allow Daimler to focus on its luxury brand, Mercedes.
Jeff Macke says it seems like “sell the news” to him. He asks how much is getting rid of something really worth?
Phil Lebeau says Daimler without Chrysler is a company that’s much more focused and adds that BMW (BMW) is using a similar strategy
Tim Strazzini says the deal won’t make a difference to Chrysler – but it will make a difference to Daimler. With the global economy strong, Tim believes consumers will keep buying new Mercedes.
Eric Bolling says investors should expect volatility in DCX. He cautions investors not to buy it and expect it to go straight up – he sees some downside.
Dylan Ratigan says the bottom line is everyone on the panel is bullish on the deal except Jeff Macke.
On MAR 23, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Bolling owns (MPEL),Gold, Silver Soybeans, Is Short Corn Strazzini Owns (T), (VZ),