Reply #48: GM'S STOCK FALLS 30% AFTER ANALYST SETS SHARE-PRICE TARGET OF $0 [View All]

[Roland99]

GM'S STOCK FALLS 30% AFTER ANALYST SETS SHARE-PRICE TARGET OF $0

Deutsche Bank sees GM shares as likely worthless
Automotive giant may have trouble funding past December, broker warns

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCAFEF63F%2D017D%2D42E2%2D874A%2D14146A6D20A5%7D

LONDON (MarketWatch) -- Shares of General Motors Corp. got downgraded to sell from hold and were labeled Monday as likely to be worthless by Deutsche Bank, which said the car maker may not be able to fund its U.S. business past December without government intervention.

GM's shares, part of the Dow Jones Industrial Average, dropped 17% to $3.62 in early action, continuing their recent retreat.

Deutsche Bank analyst Rod Lache said in a note to clients that he believes the government will be compelled to intervene to shore up Detroit-based GM through a capital infusion or loan.

...

If GM manages to avoid bankruptcy, equity shareholders are unlikely to get anything back, Lache said in slashing his target price for the shares to nil from $4.