GM

General Motors Company

Industrial/Transportation


Presented:03/12/2013
Price:$28.31
Cap:$38.70B
Current Price:$47.85
Cap:$53.78B

Presented

Date03/12/2013
Price$28.31
Market Cap$38.70B
Ent Value$39.76B
P/E Ratio22.27x
Book Value$22.16
Div Yield3.2%
Shares O/S1,366.44M
Ave Daily Vol10,900,000
Short Int5.10%

Current

Price$47.85
Market Cap$53.78B
General Motors Company designs, builds, and sells cars, crossovers, trucks, and automobile parts worldwide. It operates through GM North America, GM Europe, GM International Operations, GM South America, and GM Financial segments. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, as well as under the Alpheon, Baojun, Jiefang, and Wuling brand names. It also sells cars and trucks to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, the company offers connected safety, security and mobility solutions, and information technology services. The company, through its subsidiary, General Motors Financial Company, Inc., provides automotive financing services. General Motors Company was founded in 1897 and is based in Detroit, Michigan.

Highlights

A primary factor supporting the presenter’s optimism about GM shares is the strong correlation between pick-up truck sales and single family home starts. Part of the relationship is coincident, he said, as the economy has improved and interest rates are low (allowing for cheap financing). However, the wealth effect plays a factor and residential construction activity makes a big difference in demand for over-sized vehicles. SAAR has been running at ~15 million, and he believes the market will continue to trend up to a more natural 16-17 million level (the home starts correlation suggests SAAR should land at 16.5 million).

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Idea Discussion

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