This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

AmeriCredit Investor Could Lighten Stake

As of Sept. 30, Fairholme owned a total of 32.3 million shares of the company, worth $510 million at the time. Comparing that figure to the estimated value of the firm's holdings at the end of the second quarter, Fairholme had seen appreciation resulting in a tidy $73 million paper-profit on its total AmeriCredit investment

But, given the tremendous performance of the stock over the past year and the resignation of Berkowitz, Fairholme could soon be looking to take some money off the table.

Shares of AmeriCredit rose a nickel to $19.93 in early trades on Wednesday. The stock reached its high for the year of $20.10 on Nov. 11, and, based on Monday's close, it was up more than 300% for the past 52 weeks. The near-term low for the shares is $3.07, set on March 6.

"Anytime a big shareholder sells shares, there could be some downward pressure on the share price. In this case AmeriCredit shares have had a very nice run," Gokhale says. "It shouldn't be a complete surprise. Our view is that the shares are fully valued at this point in time given limited earnings power at least in the near term."

Berkowitz, who has been on AmeriCredit's board for just under a year, is stepping down due to the "demands of his position" at Fairholme, according to an AmeriCredit release. An outside Fairholme spokesman said the demands include the start of a new fund in the near future, according to an e-mailed statement.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.42 0.19%
C $51.64 0.23%
JPM $60.55 0.61%
LUK $22.38 0.40%
UWN $1.49 2.80%


DOW 17,703.99 -72.13 -0.41%
S&P 500 2,059.68 -8.21 -0.40%
NASDAQ 4,870.9730 -29.9120 -0.61%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs