GM worth a punt?

[Mega]

I know GM is up to its neck in recall's & Red ink right now, but i been watching & they are starting to get a grip.
http://www.dailymail.co.uk/news/arti...es-gallon.html

Worth buying GM stock now?
Mike

[BK]

Re: GM worth a punt?

Haven't all auto manufacturers been big winners because of low interest rates - in USA you can borrow for 0% for 60 months to purchase a GM car.

I'm thinking the automobile manufactures have seen there peaks and will be falling. With my stock picking record it is very likely that I'm wrong and GM continues to grind higher.

But, look at Ford (F) has just come off its highs and the CEO retiring. My experience is CEO's retire when it looks like there is tough sledding ahead.

[flintlock]

Re: GM worth a punt?

Cash for clunkers didn't hurt either. But the average age of cars on the road is pretty high so I'm thinking car makers will do okay for a few more years. Competition is fierce, and consumers have benefitted.

[BK]

Re: GM worth a punt? - GM by the numbers

GM's income has been falling since 2011

Net income - right from yahoo finance page - these are non-GAAP numbers
as of
Dec 2011 - $7.5 Billion
Dec 2012 - $6.1 Billion
Dec 2013 - $5.3 Billion
FALLING INCOME

Meanwhile look at what is happening to the Liabilities on the balance sheet
Liabilities as of
Dec 2011 - $106.4 Billion
Dec 2012 - $113 Billion
Dec 2013 - $123.7 Billion
RISING LIABILITIES

Meanwhile thanks to QE rising Share price
Dec 2011 - $20/share
Dec 2012 - $27/share
Dec 2013 - $40/share
Current share price approximately $33..

Same story at GM as many big US companies, expanding liabilities through borrowing money to buy back shares of company, share price rising a result of reducing shares outstanding, meanwhile the income for the company continues to fall.