GM stock touches $1, lowest since Depression

The automaker's shares recover and steady above a buck after hitting a 76-year bottom that followed executives' sale of stock.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

gm.mkw.gif
How is the paycheck stimulus tax break affecting your economic situation?
  • It's helpful
  • It's not a big deal
  • I don't get the break

NEW YORK (CNNMoney.com) -- General Motors Corp. stock briefly plunged to $1 a share in Wednesday trading, flirting with its lowest levels since the Great Depression, before it managed a recovery.

GM's (GM, Fortune 500) stock price dipped to $1 shortly after the start of trading. The stock hasn't closed that low since April 19, 1933, according to split-adjusted calculations from the Center for Research in Security Prices.

Shortly after the opening bell, the battered, Detroit-based auto giant managed to recover slightly, hovering near its Tuesday close of $1.15. In midday trading, the stock managed to gain about 15 cents.

Stock in GM, which shares Big Three status with Ford Motor Co (F, Fortune 500). and Chrysler LLC, has plunged precipitously in the last two years.

As recently as 2007, the stock was trading above $40 a share and has lost about 95% of its value since one year ago, when it closed at $20.20.

The automaker's stock price peaked on April 28, 2000, when it closed at $93.625. Auto sales were at a record high.

David Silver, analyst for Wall Street Strategies, said that $1 is a "big mental barrier for a stock" and he expects GM to plunge much further.

"My price target is zero right now because I think the company's going bankrupt," he said.

Silver described GM as a day trader's stock and said it's one of the 10 most short-sold companies on the New York Stock Exchange.

The latest slide in the stock began Tuesday, when GM plunged more than 20%. It occurred after a half-dozen GM executives, including vice chairman Bob Lutz, disclosed Monday that they'd sold off $315,000 worth of shares.

The money-losing automaker -- which has experienced healthier sales overseas than in the United States in recent years -- has until the end of May to meet the federal government's demands to cut costs and come up with a new plan for viability.

GM has received $15.4 billion in government assistance so far this year. The company lost $6 billion in the first quarter and burned through $10 billion in cash.

One of its U.S.-based rivals, Chrysler, which is owned by the private equity firm Cerberus Capital Management, recently filed for bankruptcy as part of a plan that will give control to Italian automaker Fiat and the company's unions.

GM Chief Executive Fritz Henderson has said that a bankruptcy filing, which would likely wipe out current shareholders, is the most probable option for the company.

GM was founded Sept. 16, 1908 as the General Motors Company of New Jersey, and began trading on the NYSE in 1916 as the General Motors Corporation.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
These 10 food trends could dominate 2015 So long, kale. Here's what's expected to shake up the food industry next year. More
Beyond Russia: Geopolitical hot spots in 2015 Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More
These 20 antique guns could fetch big bucks Morphy Auctions in Pennsylvania is putting nearly 1,000 old guns on the block. Here are just a few. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.