Between rising gas prices and union strikes, it seems the domestic automakers just can’t catch a break. General Motors and Ford have been fighting their declining North American operations for months now, the toll of which is really starting to be felt on Wall Street.
General Motors’ stock was already on the “neutral” list, but on Thursday Goldman Sachs further downgraded GM’s stock to “sell”. In addition, Goldman Sachs added GM’s stock to its “Americas Sells List,” according to Automotive News.
Goldman Sachs cited further cash burn and shareholder dilution as the reason for the downgrade. “We think GM’s automotive cash flow burn this year and next is likely to lead it to look to raise capital, which we believe could lead to significant shareholder dilution and/or a cut to the company’s dividend,” analyst Patrick Archambault told Automotive News.
Archambault also reduced his 6-month price target of GM’s stock to $11, a reduction of $8.
In addition, Archambault cut his price target of Ford’s stock by to $5 from $8 — although Ford remains on Goldman Sachs’ “neutral” list.
06/26, 12:01 PM
posted by:
F451
This party is starting to run short of beverages…
06/26, 12:25 PM
posted by:
johnnycanuck
Dive! Dive! Dive!
06/26, 12:59 PM
posted by:
brassmonkey
Thanks, Goldman, for the dry ****. As of 9:55 am PST, the Dow is down 239 to 11,572! Thanks again, douchebags. Every time you or the old **** Greenspan open your mouth, the Dow drops like a stone. Thanks. Next time, at least give us a ****ing reach-around!
06/26, 1:33 PM
posted by:
F451
BrassMonkey, for once I agree with you. There is soooooooo much market manipulation that is has become pathetic. Greenspan did irrefutably damaged the system while hanging-out with the power brokers; he will prove to be one of the biggest losers in fiduciary history.
06/26, 1:50 PM
posted by:
HemiRoadRunner
Brass Monkey is the perpetuator of @$$ kicking. Screw goldman sachs, it must be nice to screw with companies as much as they do while companies are working their @$$’s off and goldman sachs just sits there and finds things to nit pick about. What a great job that must be, heebs.
06/26, 2:01 PM
posted by:
HoosierHero
Wow, are you guys big holders of GM stock or something? GS does this all the time. It tells the public who’s performing and who’s not. That in turn adjusts their stock on the market. If GM was run better they wouldn’t have this problem. Maybe you guys should invest in oil. I hear it’s going to be huge!
06/26, 2:04 PM
posted by:
xyunya
I would purchase Goldman Sachs shares, if I were you boys. Their shares are going up (if not today tomorrow). GM is old news, if you watch market it is already 50% of what it was. And there is absolutely no reason for it to go higher: just listen what Wagoner says. Except for Honda, all auto shares going to be in the crapper for the next 12-15 months.
06/26, 2:07 PM
posted by:
driven
I can’t wait to hear the GM fanboys on this one.
I have to admit I would have pegged Chrysler as the first one to fall & be bought out. But it appears – if this story is accurate – that Ford or more likely GM will be the one bought out.
By the way this GM talk has been going on for weeks on Wall Street. Read the Journal or watch CNBC. Golden Slacks is just the first company to take action and downgrade. All the investment company reps have been bashing GM for a while so they are all on the verge of a similar official downgrade against GM.
06/26, 3:19 PM
posted by:
injunraiv
I don’t think driven even read the article…
06/26, 4:38 PM
posted by:
SickofGarbageMotors
How long before Putz and Wagoner take their golden parachutes and run? At the rate of bad news that’s been going around at GM lately, I would expect at least one of them is pitching resumes right now.
06/26, 4:53 PM
posted by:
xyunya
Hey SickofGarbageMotors, I want to warn you that I have copyright on “Putz!”. I pegged him first
.
06/26, 4:57 PM
posted by:
xyunya
injunraiv, what’s there to read? GM is in **** house as far as Wall Street concerned. And it is because Main Street refuses to purchase GM goods (or no-goods).
I feel for Kerkorian. If he would not waste cash on Ford (that cash I think keeps stock in neutral) he could bought GM board out and personally delivered pink slips to Putz@xyunya and Wagoner.
06/26, 5:43 PM
posted by:
xyunya
BTW, the price reduction to $11/share occurred today 6 months ahead of prediction
06/27, 1:19 AM
posted by:
bigp
he can kiss my ass about ford
06/27, 10:50 AM
posted by:
xyunya
^^^there is a line of Goldman Sachs executives waiting for the honor
06/27, 11:22 AM
posted by:
TOZO
Goldman Sachs is one to talk. Its stock fell from the late October high of $250 per share to about $175 now. Maybe they should downgrade themselves.