Arnold Van Den Berg Exits General Motors

Guru divests car manufacturer from portfolio in the 4th quarter

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Jan 19, 2017
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Arnold Van Den Berg (Trades, Portfolio), founder of Century Management, sold his remaining 812,918 shares of General Motors (GM, Financial) for an average price of $33.61 per share in the final quarter of 2016.

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General Motors is an automotive company that designs, builds and sells cars, trucks, crossovers and automobile parts worldwide. The company has four separate global automotive segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA).

General Motors has a market cap of $57.47 billion, a price-earnings (P/E) ratio of 4.35, an enterprise value of $112.76 billion and a price-book (P/B) ratio of 1.24.

According to GuruFocus, General Motors has an 5 out of 10 financial strength rating with an equity-asset ratio of 0.21 and an interest coverage ratio of 18.47. Its Piotroski F-Score of 6 indicates the company is in a healthy business situation.

General Motors also has an 6 of 10 profitability and growth rating with an operating margin of 6.10%, a net margin of 8.55%, a return on equity (ROE) of 34%, three-year revenue growth of 0.70% and three-year EPS growth of 26.50%.

Van Den Berg purchased his initial stake in General Motors during the second quarter of 2015. Since the sale, General Motors' stock price has gained an estimated 12%.

Below is a Peter Lynch chart that shows General Motors is trading below its intrinsic value.

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Disclosure: Author does not own any shares of this company.

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