Goldman downgrades continue with Citigroup and GM
Goldman Sachs picked up right where it left off yesterday by releasing a new set of downgrades.
Today’s bad news is for brokers and the auto industry.
Analysts downgraded shares of Citigroup and added the company to its “conviction sell” list. Other companies recently added to this dubious list include: Boeing, Trina Solar and Logitech International.
Goldman Sachs expects Citi to incur another $9 billion in write-downs and is instructing investors to short the stock. Citigroup shares are trading down over 6 percent this morning.
Analysts also downgraded General Motors from “neutral” to “sell,” setting a target price of $11 (down from $19). Investors seem to agree, at least for today. The stock is trading around $11.40 heading in to the afternoon and traded down as much as 11 percent this morning.
Meanwhile, shares of Goldman Sachs are trading down three percent, losing about one percent more than the Dow so far today. Has being the bearer of bad new sent shares of Goldman Sachs south?
Tags: citigroup, downgrade, general motors, goldmanRelated Stories
POSTED IN: Corporate, Earnings, Investment, Market, News
4 opinions for Goldman downgrades continue with Citigroup and GM
Steve Farrington
Jun 26, 2008 at 1:11 pm
I wonder why GS waited so long to start throwing names on the sell list- talk about coming late to the party.
Painful week to date:
C -7%
GM -18%
BA -10%
Inflation worries:
Gold ~$915
Oil ~$140
Dollar hurting:
EUR/USD ~1.57
All of that leads to the flight to quality- 10 year note yields back near 4% from 4.16% on Monday.
The fed really needs to consider headline CPI for the coming months- the gap b/w headline and core is widening.
Tyrone Edwards
Jun 28, 2008 at 8:59 am
Looking at how oil price have slowed economic growth and the Sub-prime mortgage crises has eliminated the personal equity value of millions of Americans, one must wonder how bad could it get. According to Goldman Sachs it’s going to get much worse. GM has hit a 53 year low, and Wall Street is truly going into a panic mode now if not already. Chairman and CEO Rick Wagoner told the media that GM was looking at all possible was to cut cost, and place fuel efficient crossover and hybrid vehicles into products instead of their expensive high gas consuming SUVs. GM has also spent 4.1 million dollars this year lobbying in Washington asking the U.S. government to make changes to help the align American auto industry through these troubled times.
Mark DallePazze
Jun 29, 2008 at 10:13 am
I find it surprising that being the bearer of bad news could send shares of Goldman Sachs tumbling. After all, if everyone respects their opinion as much as they do to let it send all these other companies south, why don’t they also put faith into the Goldman Sachs’ stock considering they already have put it into their advice?
Darren Scott
Jul 11, 2008 at 10:41 pm
In regards to GM headed south with the outlook gloomy- the energy crisis. Every politician seems to have an answer, but one thing I saw on tv the other day that really impressed me was making fuel from algae. Gas from corn is a waste of time and food, but fuel from algae can outproduce corn fuel by a staggering amount. And I think we can afford to get rid of some algae.
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