Goldman Upgrades GM

Hopefully this is a sign of a top for GM. While most of my shorts have been breaking down nicely this month, GM sticks out like a sore thumb.

“To be clear, we see GM’s long term fundamental outlook a challenge due to volume mix and pricing pressures. But we think GM can make a compelling case to UAW members that material wage and/or benefit cuts are needed. And we suspect members and retirees are increasingly amenable to such cuts. We think that translates into progress on healthcare costs, work rules, and potentially on wages in 2007 union talks.”

Goldman has a 3-month target of US$42 on GM shares.

http://transport.seekingalpha.com/article/39345

The Goldman upgrade is the type of BS pump and dump they love best around a top. I had to clench my teeth, tighten my sphincter and short some more on the rise it got out of the upgrade. My limit order didn't get filled yesterday morning, but I got more aggressive this morning to get one filled.

Edited 1 time(s). Last edit at 06/26/2007 11:01AM by RodgerRafter.

A friend of mine shorted GM (purchased puts) many years ago (he worked for GM).  He claims they boosted their share price by simply laying off a bunch of employees.  I wonder what tricks they will use to keep their stock from going into the gutter.