General Motors Downgraded From Overweight to Neutral at JP Morgan

Today's downgrade of GM from Overweight to Neutral at JP Morgan is one that you would expect to see after the close on the Friday before Memorial Day when no one is at work. 

As shown below, JP Morgan finally downgraded GM to Neutral after having an Overweight on the stock since July 2007 when it was trading at $36.77.  What's worse is that the analyst reiterated the Overweight call all the way down, even as recent as this Monday.  Everyone has had a tough time in this market, but this one really makes you scratch your head.

click to enlarge

Comments

[WhynoT:]

That chart alone tells the story of the usefulness of analyst recommendations. A buy over 40 all the way down to 4.36 and then a sell at 3.08... wow.

If you inverted the recommendations you may have just made some money... so much for buy low sell high.

2008 Nov 13 01:19 PM

[sumosama:]

Great analysis...great capture of the futility of analyst recommendations!!!

2008 Nov 14 11:40 AM