Bank of America dropped GM’s shares from a "hold" to a "sell". They moved their price target from $30 to $25. The stock trades at about $30 now. B of A gave the reason that the firm had "concerns over a sharp decline in product volume resulting from lower market share" according to MarketWatch.
Now GM has been losing share for some time. And, it has cut production capacity for next year, which some observers think is prudent cost cutting and others think is a capitulation to lower market share in the future.
But, all of the is old news. GM’s stock sold just below $36 on November 26. Did B of A have to wait until early January to figure out what its reservations would be. Or, was it better for investors to watch the stock slide over 15%?
Douglas A. McIntyre can be reached at email@example.com. He does not own securities in companies that he writes about.