J.P. Morgan Reports General Motors Shares Have Minimal Interest

According to J.P. Morgan, General Motors GM shares have had minimal interest in recent months primarily because of overhang concerns, but it thinks this weight will be largely eliminated after the next US Treasury sale (expected before year-end) even if UST, Canada, and the UAW VEBA fund collectively remain large GM shareholders thereafter. J.P. Morgan said that a likely rebound in H2.2011 US and China SAAR and reduced H2.2011 GM T900 production risk is also likely to aid sector and GM sentiment. “We recommend patient investors to buy GM shares now, given the timing circumstances around UST's potential share sales.” General Motors closed yesterday at $30.86.