Wednesday, December 29, 2010

General Motors (NYSE:GM) Going Beyond Bull to Mania?

ConvergEx Group has become the latest to jump on the General Motors (NYSE:GM) bandwagon, initiating coverage on them with a "Buy" rating.

While there has been some positive changes in the auto sector, you would think there has been some major turnaround in the economy and surging job creation in the U.S., the way some of these analysts are gushing over GM.

Nicholas Colas, ConvergEx Group chief market strategist, said, "Near term catalysts include the Detroit Auto Show in January, customarily a period of positive news flow for the industry, as well as good December vehicle sales, and potential upside to Q4 earnings."

This is a stock that is being hyped, and should be approached far more conservatively than is being done by analysts at this time.

GM was trading at $36.05, gaining $0.73, or 2.07 percent, as of 1:22 PM EST. ConvergEx Group has a price target of $43 on them.

No comments: