What does Kirk Kerkorian know that others on Wall Street don't know?

That was one analyst's meditation after the billionaire investor's Tracinda Corp. indicated in an SEC filing that it has increased its stake in Ford(NYSE:F) by about 20 million shares to a 6.49% stake from 5.5%, The Associated Press reported Thursday. Tracinda now owns 140.8 million shares of Ford.

Ford's shares were virtually unchanged on the news, gaining 5 cents to $6.27 in Thursday morning trading.

Kerkorian now owns 140.8 million shares in the U.S. automaker, and stock analyst C. Leonard Bauer said Kerkorian is either venturing forth where no seasoned investor would go, or is on to something.

A high-risk investment

"On its face, this is a high-risk stake, a calculation that could hurt dearly. There's not a lot running in Ford's favor right now, from an operational standpoint," Bauer said. "Ford wants us to believe their transformation is progressing reasonably well, but it isn't. I've seen little in Ford's fleet or prototypes that suggest a whole new generation of young adults will suddenly run out and buy Fords, and they are still behind-the-curve on efficiency, styling, innovation, and must-have vehicles." Bauer added that he does not have a rating on nor own shares in Ford.

Billionaire investor Kirk Kerkorian said he has added $100 million to his pool of capital for buying shares of Ford, and may borrow as much as $600 million to buy shares, according to a U.S. Securities and Exchange Commission filing, Bloomberg News reported Friday.

Kerkorian now says he may borrow up to $600 million, up from $500 million, from the Bank of America (NYSE: BAC), according to the filing, Bloomberg News reported.

Ford's (NYSE: F) shares fell 40 cents to $6.75 in mid-day Friday trading, amid a broader market sell-off.

Kerkorian's announcement occurred one day after Ford advised analysts and investors that it had abandoned its profitability target for 2009, due to rising steel and gasoline costs, among other factors, The Washington Post reported Friday.

Ford's shares: not overpriced

Independent stock analyst C. Leonard Bauer said Kerkorian's tactic, should he follow-through and increase his 5.5% Ford stake, is daring, but risky. "Let's just put it this way: Kerkorian would not be radically overpaying for Ford at these price levels," Bauer said.