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Citigroup Downgrades GM to Hold from Buy

1388 Views 24 Replies 11 Participants Last post by  Buickman
GM Declines After Citigroup Cuts Shares on Higher Energy Costs

May 27 (Bloomberg) -- General Motors Corp. fell after Citigroup Inc. cut its rating on the largest U.S. automaker to ``hold'' from ``buy,'' citing higher energy and commodities costs as well as continuing credit constraints.

``Auto fundamentals are poised to deteriorate beyond 2008,'' Citigroup analysts wrote in a note. GM faces ``reduced earnings power and cash burn risks.''
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Now Let me here everybody here defend rick and lutz how they are doing superb job. GM will burn through 7b in cash and gm already sold everything that was there to sell. So what now?
I'd say you become CEO of GM and then we can come in here and talk negatively about your performance in a seriously down market. Since you've got all the Monday morning quarterback answers, it would be a great thing to behold.
what will analysts say when they realize Yukons, Suburbans, Tahoes, Trailblazers, and Envoys etc... in the lease portfolio have dropped another $3,000 - $5,000 minimum in the last 2 months? GMAC already takes a substantial hit on residuals, this is a massacre in the making!

keep wondering how bad it has to get before the Board of Bystanders pulls the plug on Red Ink Rick?
OMG and the other manufactures are immune to this same thing right? Yea, there's no vast quantities of Armadas, QX56s, Pathfinders, Explorers, Expeditions, Sequioas, 4 Runners, LX570's, GX470's, Durangos running around with the exact same issue. It may become as a shocker, but Toyota's growth in the US over the last 10 or so years isn't from itty bitty fuel sippers, but trucks and SUV's.
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