GM shares dropped to their lowest point in 40 years yesterday, closing at $11.43 when the bell rang. To put things in perspective, if you bought a new-for-1968 Camaro instead of, say, 245 shares of GM stock (about the same price at the time), the car would have been a significantly better investment. Yeah, we're excluding splits, dividends and the like, but they're not convenient for the point we're making. In a statement containing several unnecessarily large words, Goldman analyst Patrick Archambault said he "expects GM shares to continue to underperform as market fundamentals deteriorate which exacerbates liquidity concerns." Translation: GM's cars aren't selling so it's gonna spend all its cash.
Of course, GM looks like Apple next to Ford shares, which are sitting at a measly $5.07. However, Ford is rated as a "neutral" while GM stock was downgraded to "sell." Why? Because that's where the dart landed, we'd assume. Isn't that how all this stock stuff works?
[Automotive News (sub. req.); Photo Credit: Freakingnews.com]