Analyst gives up on GM; stock plunges

Henry Paulson’s old employer Goldman Sachs has removed price targets and investment ratings for General Motors, inferring that government aid, which they believe unlikely to occur, is required for the giant automaker’s survival. A J.P. Morgan analyst downgraded GM from overweight to neutral, noting that government aid would likely involve a large stock buy which would dilute current shares. In response, GM stock fell yet again, currently trading at $2.82 per share, 88% of its year-long high.

GM has not traded above $14.62 in 2008. The one-year high price was over $32 per share. The stock had hit $89 in 1999. Ford stock is currently down to $1.75, but the 1-year high was just $8.79, and it peaked at over $36 in 1999.