Ahead of the Bell: DaimlerChrysler

Associated Press 03.19.07, 8:55 AM ETA - - Goldman Sachs analyst over the weekend said it's no longer a good idea to sell short the shares of auto maker DaimlerChrysler AG.

In July, analyst Stefan Burgstaller added the Stuttgart, Germany-based manufacturer to the Goldman Sachs (nyse: GS - news - people ) Sell List, a group of stocks the research house recommends investors sell short. Selling a stock short means borrowing it from a broker and selling it, hoping to buy it back and return it for a profit after the stock price falls.

Last month, DaimlerChrysler (nyse: DCX - news - people ) said it planned to "consider all options" for its ailing Chrysler unit, hinting at a sale. Partly because of this announcement, the stock is up 32.9 percent since Burgstaller added DaimlerChrysler to the Sell List.

Now, Burgstaller said the risk of selling DaimlerChrysler short is too great. There is speculation private equity firms might buy Chrysler, which could lift the stock. Burgstaller upgraded DaimlerChrysler to "Neutral" from "Cautious."

DaimlerChrysler shares rose $1.19 to $73.13 in premarket trading Monday.