Replies to post #27578 on Options Wonderland

[3xBuBu]

is LEH already on the GS sell list or soon to be?
anywhere we can check?



My posting is for my own entertainment, do your own DD before pushing your buy/call button

[3xBuBu]

another Goldman Sachs victim
GM drops to 53-year low, Goldman urges "sell"
Shares of General Motors Corp hit their lowest level since 1955 and dragged down the auto sector on Thursday after Goldman Sachs cut the struggling U.S. industry's largest manufacturer to a "sell" rating and warned it would have to raise capital.
http://news.yahoo.com/s/nm/20080626/bs_nm/autos_dc_4

[3xBuBu]

Shares in Ford, which had its price target cut by Goldman, dropped almost 5 percent.

With the Thursday price fall, GM's market cap fell to less than $6.5 billion. The company has the smallest market capitalization in the Dow Jones industrial average (.DJI), of which it has been a component since 1925.

Next above GM in terms of market value in the Dow is Alcoa Inc (AA.N), with a market cap of about $30 billion. Walt Disney Co's (DIS.N) cap is 10 times GM's at about $60 billion and Exxon Mobil Corp (XOM.N) is the leader at about $460 billion.

GM shares have lost 38 percent over the last month as more evidence has piled up that U.S. auto sales weakened further in June, raising doubts about the prospect for the second-half recovery that GM and other major automakers had anticipated.

Fitch Ratings on Wednesday cut debt ratings on GM and Chrysler ratings deeper into the "junk" category," citing the fallout from weaker sales and high gas prices.

Fitch also said it would review Ford ratings over the next six weeks, which could also result in a downgrade.

CASH BURN RAISES CONCERNS

All three U.S. automakers, which have been hardest hit by the collapse in demand for pickup trucks and SUVs, have faced scrutiny in recent days over whether they have sufficient liquidity to ride out the current downturn.

Billionaire investor Kirk Kerkorian, who has invested about $1 billion in a contrarian bet on Ford, has offered to provide more capital to support the automaker's turnaround.

Kerkorian's chief auto adviser, Jerry York, told Reuters on Wednesday that he did not expect the U.S. auto market to bounce back in the second half of this year with an only limited rebound in 2009.

Earlier this week, Chrysler drew down a $2 billion credit line from Cerberus and Daimler AG (DAIGn.DE), the German car maker that sold off a roughly 80 percent stake in Chrysler to Cerberus last year.
http://news.yahoo.com/s/nm/20080626/bs_nm/autos_dc_4