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Hi all. I have been bullish on GM for quite some time and over the past year have built a large position.
I feel GM is It is ludicrously cheap. Multiple of ~5-5.5, and ex-cash it is more like 2.5-3. Crazy given the 100bps of margin expansion in 2015, cost efficiency gains which are still on track, sales gains and >5% yield coupled with 9B buyback (~20% of market cap!!).
Market indexes up almost 2% today while GM continues to be hated and down 1%.
Is this primarily due to fear of a global recession and the possibility of auto sales peaking?
Am I missing something else?
Great value but going nowhere is not really a great value then, is it?
I would appreciate all takes on this stock as it is always helpful to have as many opinions as possible in order to personally process as best as possible.
Keep on keepin' on;
-Adam
I feel GM is It is ludicrously cheap. Multiple of ~5-5.5, and ex-cash it is more like 2.5-3. Crazy given the 100bps of margin expansion in 2015, cost efficiency gains which are still on track, sales gains and >5% yield coupled with 9B buyback (~20% of market cap!!).
Market indexes up almost 2% today while GM continues to be hated and down 1%.
Is this primarily due to fear of a global recession and the possibility of auto sales peaking?
Am I missing something else?
Great value but going nowhere is not really a great value then, is it?
I would appreciate all takes on this stock as it is always helpful to have as many opinions as possible in order to personally process as best as possible.
Keep on keepin' on;
-Adam
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