Shares of General Motors (GM) Continue Their March to Zero

Shares of General Motors (NYSE: GM) continued their march to zero today after more than one analyst came out and said that even with a government bailout the shares may be worthless.

Deutsche Bank's call is getting the most attention. The firm slashed its rating on GM to Sell and said a government bailout will not likely help shares and therefore lowered their price target to Zero. They said, "We believe that the U.S. may ultimately need to provide GM with at least $10 bn in loans to keep the company afloat through 2009/2010, and potentially as much as $25 bn to fund GM's cash burn and restructuring. While we believe that that GM's secured creditors may get a par recovery, unsecured creditors may get very low recovery. Equity shareholders are unlikely to get anything. We are lowering our target on GM equity to $0."

In addition to the Deutsche Bank downgrade, Barclays Capital and Buckingham Research cut their price targets on GM to $1.

On Friday, GM said its liquidity will fall significantly short of what is needed in the first half of 2009 unless it gets a govenment bailout or the automotive industry significantly improves.

Shares of GM are down 20% today to $3.46, a new multi-decade low.

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