19 days ago • Posted by William Ramstein

GM is not the bargain it once was

GM’s stock is no longer the bargain it once was. Even after Wednesday’s drop, it trades for a multiple of roughly nine times forecast earnings. Stripping out the volatile numbers created by last year’s shutdowns, that is approaching the postbankruptcy peak in 2014, when U.S. auto sales were still rebounding strongly from the global financial crisis. Investors are excited about GM’s capacity to lead the industry into a new era of mass electrification. The company has been managed with impressive discipline through the trials of recent years, but now it needs something else: completely new products that delight customers. The new Hummer and Cadillac need to measure up very convincingly against the mounting competition, or its green halo will fade quickly. Source: WSJ

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