Could GM Go Broke?
The world of high finance befuddles me. Could GM really crash and burn? What's next, McDonald's?
Banc Of America Raises General Motors' Bankruptcy Risk
Dow Jones Newswires
Banc of America raised its 2-year bankruptcy risk for General Motors (GM.NYS) to 40% from 30%, following the automaker's disclosure late Wednesday of errors in recognizing some supplier credits.
Analyst Ron Tadross also cut his stock price target to $16 from $18.
"It could get worse, especially considering the stress in the supply base and widespread nature of revising contracted prices," Tadross said.
He reiterated his sell rating, "due to a $3,500 per unit competitive disadvantage, increasing evidence that hidden liabilities exceed hidden assets, the likelihood suppliers will balk at investing with GM and our belief existing liquidity may only be enough to get through a bankruptcy reorganization
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