Deutsche Bank Rates GM Shares at Zero

Robert Farago
by Robert Farago
deutsche bank rates gm shares at zero

“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.”

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4 of 22 comments
  • Michael Karesh Michael Karesh on Nov 10, 2008

    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.

  • Detroit-Iron Detroit-Iron on Nov 11, 2008

    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.

  • Jybt Jybt on Nov 11, 2008

    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....

  • Fallout11 Fallout11 on Nov 12, 2008

    Well said, Pch101. Always love your posts.