Analyst: Game over for GM stockholders

[Truth Teller]

Source: Detroit Free Press

The game is over for holders of General Motors Corp.’s existing stocks and bonds, Credit Suisse auto analyst Chris Ceraso wrote in a note to investors today.

Ceraso downgraded Credit Suisse's rating of GM from neutral to underperform and dropped its target price for the stock to $1 from $2.


The news caused many investors to dump their investment in GM.


Shares of GM were trading at $3.72 mid-day. That’s down 17.59%, or 79 cents, from Friday’s close.


“Over the next two months, as bondholders, union representatives and company management meet to hammer out concessions, we think it will become increasingly clear that the enormous sacrifice of value on the part of the union (upwards of $10 billion) and bondholders (about $24 billion) will require the complete or near-complete elimination of the existing GM equity,” Ceraso wrote.


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Read more: http://www.freep.com/article/20081222/BUSINESS01/81222018

[RUMMYisFROSTED]

1. You mean Credit Suisse doesn't love GM?

[madrchsod]

2. oh nooo...another anal-ist informing his investors

that the second largest automobile manufacturer in the world stock is going to be worthless...

the next one to fail will be toyota .....

[Alcibiades]

3. They are just jealous

Credit Suisse lost $1.12 billion in the third quarter, and GM lost about double that.

I guess underperforming is relative.

[tomm2thumbs]

4. one doll hair a share - wow

that's pretty low - but gives some bad news to those who were thinking of banning the penny - a hundred of those puppies would buy you a share

[Mike 03]

5. Something had to give. This stock is a ticking time bomb and I'm only amazed that stockholders

had to be told by a rating agency that the stock was dangerous before believing it was a strong sell, after all this recent turmoil.

[AllentownJake]

7. Lucent

My Dad lost about 300,000 well really about 50,000 actual loss but could have had 300,000 if he sold it at the high when he was an employee there. I believe the stock went from the high 80s to about $2 in a rather quick fashion as well. The problem was everytime it dropped my Dad just held onto it hoping it would eventually go up again.

[AllentownJake]

6. Game over

I don't want to begin to say what GM's shares falling like this has done to everyone's pension funds.