They are betting on electric vehicles. GM-T should have a better valuation if you compare it to TSLA-N with a very high valuation, who is not the only player there. (Analysts’ price target is $60.25)
As an e-vehicle play If GM renamed themselves "General Motors Electrical Corp" then their market cap would jump from $79 billion to $100 billion. The CEO is smart and doing the right things, so he likes GM.
Doesn't think much of it. Capital intensive. No history of increasing shareholder wealth over time. Difficult industry. Any company that takes a lot of government handouts to keep the boat afloat is not a great business model.
Reinvented itself. Shrunk cost base, so they can break even. Spending on electrification of products. 40% of products will be electric by 2025. Inexpensive. Operating cashflow will increase. Good products. No dividend. (Analysts’ price target is $51.44)
GM vs. F Every company is going to have to disrupt to be in EV. Won't be easy, as Tesla is out front and will be hard to challenge. Uptick in demand for vehicles, so they should participate in the recovery. Both are inexpensive. He'd choose GM.
(A Top Pick Oct 15/20, Up 26.6%)Stockchase Research Editor: Michael O'Reilly Wanting to remain disciplined, we are recommending to cover 50% of the position as it has achieved our initial objective. We also recommend moving up the trailing stop to just above the initial recommended buy price at $32.50 (previously $28.00).
Stockchase Research Editor: Michael O'Reilly As auto sales are beginning to recover from the effects of pandemic lockdowns, we see GM emerging as a TOP PICK. Signs are showing demand growth in China already -- up 12% during the past three months -- marking the first growth in the region since 2018. In the US, sales topped 665,000 units last quarter, a sharp beat of analyst expectations. Record low loan interest rates are expected to help as well. GM is the most aggressive in EV model plans, which should give them an added edge over the competition. Trading at only 7 times next years earnings, it is good value. We would buy this with a stop-loss at $28, looking to meet analyst expectations over $40. Yield 0%. (Analysts’ price target is $40.75)
Given the GM-Nicola battery deal, should we not think of GM as a tech company in addition to car? GM stock is cheap. We need to get through used car inventory, then GM will do okay. You can sell this under $30. Nicola is a sideshow. He's getting positive about cars, because people are afraid of public transit and car pooling.
Trading at 5x earnings. The CEO has been transforming the business to e-cars. The car industry has been tough and the strike is the latest blow. He's watching it.
(A Top Pick Jun 12/18, Down 13%) He's sold out. It yield around 4.1% and trading at a crazy-loaw 5.5x forward earnings. The car business is notoriously cyclical and it currently on the down side. Can they remain profitable now? If they can, then GM is a huge bargain, but if they can't, then sell GM.
The auto business is going to be rough for the next 5 years. There is going to be so much change. Electrification is going to happen in the next half decade. He saw the turmoil and decided there were better places to be.
He sold GM for better opportunities. He expects them to be a force in e-cars, starting to release them in 2020, perhaps. GM should get e-cars right and become a fierce competitor in this space. Trades at a low multiple, 6x forward earnings. 3.98% yield.
General Motors Corporation (GM) Frequently Asked Questions
What is General Motors Corporation stock symbol?
General Motors Corporation is a American stock, trading under the symbol GM (previously GM-N on Stockchase) on the New York Stock Exchange (GM). It is usually referred to as NYSE:GM or GM