Is GM a Good Buy?

gm stock chart
Much has been made of the largest IPO in history...General Motors (GM). After their brief time away from Wall Street (Bankruptcy), they have been able to rearrange their liabilities column to hopefully be able to survive the rest of the storm. Of course there have been many large companies that have been able to take the road of bankruptcy, only to come back stronger, however, I am not sure GM will be one of them.

First of all, they have been out competed the last 10 years to the Japanese in the construction of automobiles. Sure, they do get their "American" made claim to their brand with their big trucks and SUVS, however, as consumers tighten their budget, they shop for efficiency and longevity. All signs point to Japanese in that regard. Now, GM is attempting to re-brand themselves into a competitive brand to the Japanese, while still trying to keep their loyal "American Only" customers. At any rate, their stock seems to be gaining a bit of momentum in the short term (see graph above), however, if post holiday stock woes are in our midst, this trend can quickly change. In my next post, I will discuss an auto stock (Indian) that is definitely worth noting and watching. Happy Trading.

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2 comments:

  1. QUALITY STOCKS UNDER 5 DOLLARS Says:

    I would avoid general motors and buy ford. Ford is by far the better company.

  2. Angel17 Says:

    General Motors has 23.91% upside potential, based on the analysts' average price target. Is GM a Buy, Sell or Hold? General Motors has a consensus rating of Moderate Buy which is based on 10 buy ratings, 4 hold ratings and 3 sell ratings. seattle water heater repair