Holstein912
07-03-2008, 01:20 PM
Shares of General Motors Corp. rebounded by 3.41% to $10.32 in morning trading today after one analyst’s note sent the stock to its lowest close in more than half a century on Wednesday.
While Merrill Lynch analyst John Murphy raised concerns about GM’s liquidity on Wednesday — saying the automaker may need to raise as much as $15 billion to remain solvent — today, JP Morgan analyst Himanshu Patel said he believes GM’s liquidity position is middle of the road among the Detroit automakers, ranking it “tough but manageable.”
In a note this morning to investors, Patel wrote that GM may get to a point where its cash is tight, but he believes the automaker would be able to raise any funds it might need.
Ford, he wrote, “should be able to weather a prolonged automotive sales downturn for two years.”
Ford was trading up 2.98% at $4.49 in morning trading today.
But Chrysler, which is no longer publicly traded, he said, may face a cash crunch.
“Of the Detroit 3,” Patel wrote, “we think Chrysler faces the highest liquidity risk. A failure of any major automaker is likely to result in near-term industry-wide pricing pressure as the failed company would likely have to cut pricing to protect what are likely to be accelerated volume declines.”
Chrysler has repeatedly denied that it is at risk of failure and in June issued statements saying the company was not considering bankruptcy.
Source: Freep
Cheers
Holstein912
While Merrill Lynch analyst John Murphy raised concerns about GM’s liquidity on Wednesday — saying the automaker may need to raise as much as $15 billion to remain solvent — today, JP Morgan analyst Himanshu Patel said he believes GM’s liquidity position is middle of the road among the Detroit automakers, ranking it “tough but manageable.”
In a note this morning to investors, Patel wrote that GM may get to a point where its cash is tight, but he believes the automaker would be able to raise any funds it might need.
Ford, he wrote, “should be able to weather a prolonged automotive sales downturn for two years.”
Ford was trading up 2.98% at $4.49 in morning trading today.
But Chrysler, which is no longer publicly traded, he said, may face a cash crunch.
“Of the Detroit 3,” Patel wrote, “we think Chrysler faces the highest liquidity risk. A failure of any major automaker is likely to result in near-term industry-wide pricing pressure as the failed company would likely have to cut pricing to protect what are likely to be accelerated volume declines.”
Chrysler has repeatedly denied that it is at risk of failure and in June issued statements saying the company was not considering bankruptcy.
Source: Freep
Cheers
Holstein912