General Motors Company (NYSE:GM)

CAPS Rating: 3 out of 5

The Company is engaged in the worldwide development, production, and marketing of cars, trucks, and parts.


Player Avatar Polarimetric (25.03) Submitted: 8/4/2011 12:33:20 PM : Outperform Start Price: $31.30 GM Score: -57.08

Is it never going to be good enough? GM just reported its biggest quarter of the past decade and it's tanking with the rest of the stock market as if everyone was looking the other way when the news hit. They're even profitable in Europe this quarter--that's unheard of for this company, even when things were going well domestically. The lack of attention this stock is getting for a play with huge growth potential (and a company that's playing the green revolution smartly--who has the best-selling small, fuel-efficient car in the USA today? You bet it's GM) amounts to criminal negligence. There is no way this should be trading for a single-digit PE, government or no government ownership. Skeptics said after the reformation and IPO that they'd wait for the first quarter results to see how things went--GM sparkled in the first quarter. Skeptics said after the first-quarter results (and after the stock tanked 4-5% on earnings day) that they'd wait for the second-quarter results to see how things went and GM wiped the floor with estimates all over again. I don't know who or what is keeping GM's and F's prices depressed, but it can't possibly hold on forever, and when it lets up this stock will hit much more sensible prices.

Report this Post 5 Replies
Member Avatar clayman14 (< 20) Submitted: 9/7/2011 11:34:09 AM
Recs: 0

Don't forget they're owned 60% by us already. Something in the $50 billion dollar range I think. This stock has a long way to go before we get back to cost from our original investment as tax payers. With an only $34 billion market cap it has a long way to go just to get back to break even. Currently as American's we're already down in this investment by well into the double digits. Why invest more, in a bad investment. Of course it get's no news because any news has to be accompanied by how much is owned by us as taxpayers and how in the hole we are. Nobody likes to look at a portfoilio double digits in the red. Why would anybody want to put more money then we've already invested in this. Especially when you compare Ford next to GM. Yes, GM cheated (why trust cheaters to begin with) and used us taxpayers to get debt off their books so Ford has a weaker balance sheet but jeez just look at Fords gross margin compared to GM for an indication as to the integrity of management. No way single PE? Compare Fords operation and integrity to GM. Fords only 6 PE. If anything compared to margins and management integrity GM is over priced. I'm not even sure what GMs market cap would have to be for the Govt to be able to liquidate it's 60% stake at even break even $100billion maybe that way if liquidating 60% caused a fall down to $50billion we'd still break even. Plus we don't like that we've been lied to Obama said we'd have are money back in 5 years we're at three years now and still billions in the hole. GM, a mediocre company even after cheat. Add onto it the consumer nature of the company and the possibility for a double dip recession and I'd stay away. My short has been nice though...Long-term, I'm staying short cheaters never win.

Member Avatar baselineace (< 20) Submitted: 9/12/2011 10:07:38 PM
Recs: 0

General Motors is really a fantastic byproduct of corporate socialism. Certainly it was not acceptable for the government to bail them out, but the end result seems to be positive. General Motors is in excellent shape, earnings are strong, and the company is trading at a bargain multiple. The stock should outperform its peers, and will soar ahead if the market heads higher.

Member Avatar ffbj (59.74) Submitted: 10/10/2011 6:18:54 PM
Recs: 0

Yes, and when the market was tanking GM was going bankrupt, taking investors/bondholders down with it.
Least we forget. GM has a tough row to hoe to gain my confidence. Although apparently with a clean slate and some new ideas, finally I agree they should go up from where they are now. Maybe even back up to their ipo price.

Member Avatar ozzzy4444 (98.88) Submitted: 10/26/2011 6:02:09 PM
Recs: 0

"Is it never going to be good enough?"

i think the prob here is that the obama admin has a left a bad taste in the mouth of some investors,
the union drove GM bankrupt and then the obama admin threw out the law
and liquidated the company and used the funds to shore up the union pension funds!

the vendors that had past due invoices were paid pennies on the dollar
and the stock holders and bond holders got the shaft

By The Law:
1 Vendors
2 Bond Holders
3 Pension Fund
4 Stock Holders

By the Obama Admin:
1 Pension Fund (Union)
2 Vendors
3 You Got A Problem With That?

so now that the govt owns over half the company
what in the world makes anyone think that any profits
made here will go anywhere but to the unions in one way or another?

Sorry if ppl feel i'm inserting politics into this
but the facts are the facts.

Member Avatar hurricanehedge (24.51) Submitted: 1/19/2012 10:55:21 AM
Recs: 0

Ok I must say, I agree Obama is an idiot but when the 5 years is up complain about how "in the hole" we are with GM. I'm sure you have a mortgage that you prOmised to pay off in 30 years, why did it take u 45-50 years?

Featured Broker Partners