New York  London  GMT  Tokyo  Singapore 
Zacks Investment Research

General Motors Target Price $2

By Zacks Investment Research on November 10, 2008 | More Posts By Zacks Investment Research | Author's Website

General Motors Corporation (GM) is one of the largest automobile manufacturers in the world. But weak North American sales, falling production volumes, and rising raw material costs are increasing our concern for the stock.

Significant incentives to stimulate sales and keep inventories lean are eating into margins. Furthermore, GM sales are hampered by poor resale values. In addition, General Motors is at a disadvantage compared to its competitors owing to huge pension and health care costs.

General Motors has also delayed new model launches and slowed production. It apprehends a significant cash crunch and might even face bankruptcy if the U.S. economic slump continues and it fails to get any government aid. These issues compel us to rate the shares a Sell with a six-month target price of $2.00.

If you like this article please...
Subscribe by RSS Subscribe by Email Email This Post To A Friend Email This Post To A Friend

Leave A Comment :

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.
Opinions From Our Contributors
Commodities Financials Exchange Traded Funds
Stocks Forex Economy



Theme By: WordPress Theme Shop