| StreetInsider.com - Insiders' Edge |  | | Automakers Seek $34B in Government Cash | ![]() | Detroit's Big Three automakers submitted their plans and requests for cash today to Congress. Between the three, they are asking for $34 billion total in loans and credit lines.
General Motors (NYSE: GM) wants a term loan of up to $12 billion and a $6 billion line of credit; Ford (NYSE: F) wants $9 billion in bridge financing; Chrysler is requesting a $7 billion secured working capital bridge loan.
All of the automakers included plans to improve fuel economy and cut costs.
Of the three, General Motors and Chrysler are in the worst shape and Ford is the the best shape. Chrysler said it will have just $2.5 billion in cash at the end of the year, while its major expenditures for the first quarter of next year are $11.6 billion. Chrysler said without an immediate working capital bridge, its liquidity could fall below the level necessary to sustain the company through the first quarter of '09. GM said it wants an initial draw of $4 billion in December 2008 from the $12 billion loan. Ford said it may not have to access the govenment loan and expects to be break-even or profitable in 2011. Based on the dire-straights of GM and Chrysler, maybe the government should merge the two. More Insider Blog: http://www.streetinsider.com/Insiders+Blog FREE RSS Feed: http://www.streetinsider.com/freefeed.php?cid=6 | | | 
| Hedge Fund Trade of the Day - Lennar Corp (LEN) In a 13G filing yesterday afternoon on embattled homebuilder Lennar Corp. (NYSE: LEN) Castine Capital Management disclosed a 2,100,000 share, or 6.71% stake, in the company. At the quarter ended September 30, 2008 Castine Capital did not show a stake in Lennar. A 13G filing indicates a 'passive investment' of over 5%.
The new stake makes Castine Capital Management the second largest holder of Lennar, behind mutal fund behemoth Fidelilty, according to recently available data.
What is interesting is that if you look at Castine Capital Management portfolio it is a fund that specializes in financial securities, with most of it comprised on bank holding companies like Banc of America (NYSE: BAC), JP Morgan (NYSE: JPM) and Boston Private Financial Holdings Inc. (Nasdaq: BPFH).
You have to ask yourself, why is a fund that specializes in financial companies buying into a homebuilder? Many have tried to call the bottom in homebuilders but have fallen flat on their face. Will it be different for Castine? More 13Gs: http://www.streetinsider.com/13Gs FREE RSS Feed: http://www.streetinsider.com/freefeed.php?cid=33 | | 
| | Upgrade To Watch - Wright Express (WXS) Janney Montgomery Scott upgrades Wright Express (NYSE: WXS) to Buy. Price target increased from $14 to $17.
Janney analyst says, "Management’s surprise at the decline in volumes during the third quarter could keep the shares range-bound until FY 2009 guidance is introduced next January, but we view current valuation as too compelling to wait for this incremental piece of information. In our view, other catalysts, such as a more aggressive buyback program, as well as ... MORE More Upgrades: http://www.streetinsider.com/Upgrades FREE Upgrade RSS: http://www.streetinsider.com/freefeed.php?cid=9 |  | | 
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