Analyst Call: GM Goes To Zero (GM, F)

By Douglas A. McIntyre Updated Apr 27, 3:54PM EDT · Published Nov 10, 8:30AM EST

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Gm_logo Burningmoney General Motors Corporation (NYSE: GM) has been an ugly stock, in an ugly sector, in an ugly economy. Bailout or no bailout, things are looking haggard and questionable at the auto giant. This morning Deutsche Bank issued a new SELL rating on the stock. If you think that is bad, look at its price target: ZERO!!!

It is very rare that you see firms issue an outright death notice likethis before a company has formally gone into a court assisted reorganization. But $0.00 is the target. The prior HOLD rating is now a SELL rating. This call is not for the death of the company northe death of a sector. But if and when a bankruptcy protection filingcomes for reorganization comes about, then shareholders are going tofeel like they fought a few rounds with a professional boxer.

This weekend Barron’s also said that GM is driving towards a governmentbailout. But it warns: "GM may survive with government help, but steerclear of the stock."

It looks more and more like the bondholders who hold billions andbillions of debt in the US auto giant will get to run this company. GM shares are down 10% at $3.90 in early pre-market trading.

Ford Motor Co. (NYSE: F) is also down in symapthy, but only by about 2% at $1.985.

Jon C. Ogg
November 10, 2008

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.