While the dip wasn’t as dramatic as in weeks past, the Dow did fall less than a point today lead by U.S. automotive stocks that are taking a hit as they seek a government handout from the government. GM is warning that it’s running low on operating capital, while Ford’s stock is trading at $1.93, down 4.5 percent.
One analyst, Rod Lauche of Deutche Ban, today did something rather remarkable — set a target price of $0 for GM’s stock, downgrading it to sell. (It ended trading today at $3.36. According to CNN Money:
Lache shook up the street by setting a $0 target price target, the only such target by any analyst for any S&P 500 company, according to Thomson Reuters. Lache’s note echoed the idea that shareholders stood to be wiped out either way, with a bailout being akin to a bankruptcy as far as shareholders are concerned.
Recent Immigration Stories
The Mississippi Free Press produced this story through the MFP Solutions Lab, supported by the Solutions Journalism Network. This series digs into Mississippi’s systemic issues and sheds light on responses to them in other communities. Beyond just reporting on problems, these stories interrogate their causes and inspect potential solutions.