GM stock hit a 20-year low yesterday dipping to $18.33 before a few bottom-feeder investors who can’t pass up a good deal bolstered the stock back up to $19.06 in late afternoon trading. While all the negative news surrounding the General right now can shoulder some of the blame for this sell off, many analysts are citing tax loss selling, the action of harvesting capital losses to offset gains made in other areas, as the main reason for the fire sale on GM shares. This type of behavior is particularly common in the final few days of the calendar year.

This year may yet prove to be better than 2006 in financial terms for GM, as the Financial Accounting Standards Board (FASB) is considering making it mandatory for companies to show their pensions as a liability on their balance sheets rather than a net asset. Such a requirement would completely erase GM’s shareholder equity. While pension information is included in financial statements, making it part of a company’s financial profile would ensure that investors considered it before they buy.

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • From Our Partners

    You May Like
    Links by Zergnet
    Share This Photo X