GM
General Motors Co
Industrial/Transportation
12/14/2015
Presented
| Date | 12/09/2015 |
| Price | $35.45 |
| Market Cap | $57.36B |
| Ent Value | $81.49B |
| P/E Ratio | 12.83x |
| Book Value | $21.65 |
| Div Yield | 0% |
| Shares O/S | 1,618.00M |
| Ave Daily Vol | 13,824,937 |
| Short Int | 2.33% |
Current
| Price | $47.85 |
| Market Cap | $53.78B |
| General Motors Co. engages in the business of design, manufacturing and sale of cars, trucks and automobile parts worldwide. It operates through four segments: GM North America, GM Europe, GM International Operations and GM South America. The GM North America segment sells vehicles under the brands Chevrolet, GMC, Buick and Cadillac with sales, manufacturing and distribution operations in the U.S., Canada and Mexico and distribution operations in Central America and the Caribbean. The GM Europe segment has sales, manufacturing and distribution operations across Eastern, Western and Central Europe including Russia and the other members of the Commonwealth of Independent States. The GM International Operations segment has sales, manufacturing and distribution operations in Asia/Pacific, the Middle East, Africa and Eastern Europe, including Russia and the other members of the Commonwealth of Independent States. The GM South America segment sells vehicles under the brands Buick, Chevrolet, Holden, Vauxhall, Cadillac, GMC and Opel, with sales, manufacturing, distribution and/or financing operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as well as sales and distribution operations in Bolivia, Chile, Paraguay, Peru and Uruguay. The company was founded by William C. Durant on September 16, 1908 and is headquartered in Detroit, MI. |
Publicly traded companies mentioned herein: Berkshire Hathaway Inc (BRK/A), Ford Motor Company (F), General Motors Company (GM), Toyota Motor Corporation (TM)
Highlights
The presenter believes the US automotive sector is approaching peak cycle volume, and is at peak profits. In this context, he believes shares of General Motors (GM) are overvalued and he is short the stock. Credit conditions are about as good as they can be, gas prices are low, average transaction prices are up substantially, and SAAR has come in at over 18 million for three months running (a first). It would appear that there is only downside risk from current levels. If costs per car rise and the market rolls over as he expects, GM’s annual EPS are likely to peak near term in the $5 - $5.50 range and then roll down to a $3/share annual run rate over time.
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