Deutsche Bank Rates GM Shares at Zero
November 19th, 2008 5:55 PM Share
“Shares of GM fell 23% to $3.34 in late-morning trading,” The Wall Street Journal reports. “After earlier hitting a 62-year low of $3.02, as analysts at both Barclays Capital and Deutsche Bank cut their target prices and investment ratings on the stock. Barclays now targets GM shares at $1, while Deutsche Bank slashed its target price to zero… Deutsche Bank analysts, who cut their rating on the stock to ‘sell’ from ‘hold,’ gave GM a shorter liquidity timeline, saying the company might not be able to fund its operations beyond December. Even with government intervention, the analysts said GM’s future is ‘bankruptcy-like,’ and shareholders are unlikely to get anything.”
Published November 10th, 2008 12:14 PM
Join the conversation
4 of 22 comments
As Lichtronamo implies, a share price of zero doesn't mean that GM will go away. It simply means that the value of the stock will go away.
Like I said about Chrysler, give me $5-$10 for beer money (-$5 @ $0 per share ~ infinity shares) and I'll take GM off your hands. I really couldn't do any worse if I tried.
See? See what happens when you delay the Cruze and Camaro? You've got the Cruze out in Korea now, and the Camaro is possibly one of the best products to come from Detroit in a long time. You'll kill the Mustang with it! The time for "delays" are gone - if these cars are not released now, they won't ever make it to market. Don't just sit back and die - you might lose the money faster by releasing them now, but you at least will have a shot at surviving. If you've "wised up" in the last couple years since 2007, you'd do the right thing, GM. There is still time....
Well said, Pch101. Always love your posts.