General Motors Co $ 31.5 -0.42 (-1.32%)
General Motors Co News and Headlines -
According to the All-in-one Screener, a major Premium feature of GuruFocus, three stocks that Warren Buffett (Trades, Portfolio) and Bill Nygren (Trades, Portfolio) agree on and trade at reasonable levels based on their GF Value Line are Bank of America Corp. (BAC), American Express Co. (AXP) and General Motors Co. (GM).
The future is very difficult to forecast, but one trend that seems very likely to continue is the expansion of the electric car market. The biggest auto manufacturers in the world have recognized this too, with industry giants like Ford (F), General Motors (GM) and Volkswagen (XTER:VOW3) all investing huge amounts of money into the space. Ford even recently announced an electric version of its best-selling F-150 pickup truck - perhaps the least likely candidate for an electric makeover.
Suffice to say, there are strong desires in the industry to "electrify" every type of vehicle imaginable. One notable
Investors currently have to deal with one of the most unusual market environments in history. The coronavirus outbreak has devastated the global economy. As the outbreak proceeds to rumble on, it seems as if many businesses and economies will continue to struggle.
However, this devastation and uncertainty is not currently reflected in asset prices. On some metrics, the S&P 500 is now more expensive than it has ever been.
Tech stocks have driven the index's performance. The ten largest companies in the index have accounted for virtually all of its performance this year. These are all in the
On Tuesday morning, battery- and hydrogen-electric vehicle maker Nikola Corp. (NKLA) disclosed that automotive company General Motors (GM) entered into a subscription agreement on Thursday to purchase $2 billion worth of its common stock, or 47.7 million shares.
According to the agreement, which was filed with the Securities and Exchange Commission on Thursday, the purchase price of each share was set at $41.93, which was 16.1% above Thursday's closing price of $36.13.
In addition to the equity investment, which gives GM a stake of approximately 11% in the electric truck maker, GM will partner with Nikola in a "potential game
One strategy to unearth potential value opportunities is to look at stocks with an attractive forward price-earnings ratio.
Thus, investors may want to have a look at the following three stocks, as they have a forward price-earnings ratio standing below the S&P 500's historical average of 15. Estimates of future earnings are based on data from Morningstar analysts.
The first stock that qualifies is Vale SA (VALE), a Brazilian producer and global seller of iron ore and iron ore pellets to steel companies.
Vale SA has a forward price-earnings ratio of 7.51 (versus the industry median of
The Dow Jones Industrial Average closed at 27,844.91 on Monday with a loss of 86.11 points or -0.31%. The S&P 500 closed at 3,381.99 for a gain of 9.14 points or 0.27%. The Nasdaq Composite closed at 11,129.73 for a gain of 110.42 points or 1.00%. The VIX Volatility Index was lower at 21.35 for a loss of 0.70 points or -3.17%.
Monday's market movers
U.S. indexes were mostly higher Monday. The S&P 500 is approaching record closing levels.
Investors continued to watch U.S. and China tensions with Trump ordering the sale of TikTok and the Commerce Department also limiting
Tesla’s (TSLA) market capitalization just crossed $300 billion. It’s the largest car maker in the world, even larger than Toyota (TM), which produced almost 9 million cars in 2019 and had a market capitalization of $200 billion. Tesla's market cap implies that the market believes that its production will go up more than 20-fold from the 400,000 cars a year it produces today to … 10 million cars.
As the market valuation of Tesla raced to the moon, its debt rating remained as junk (Toyota is A+, GM (GM) is BBB). The largest automaker in the world is junk-rated.
In the midst of an $11 billion restructuring plan that has failed to woo Wall Street, Ford Motor Co. (F) announced President and CEO Jim Hackett’s unexpected retirement on Tuesday morning.
Hackett, who was selected for the top leadership role in 2017 after his successful tenure with furniture company Steelcase (SCS), will be succeeded by current Chief Operating Officer Jim Farley on Oct. 1. Over the next several months, the two will work together to facilitate a “smooth leadership transition.”
Farley will become the Dearborn, Michigan-based automaker’s fourth CEO since the Great Recession, which nearly bankrupted it a decade ago.
The Dow Jones Industrial Average closed at 26,870.10 on Wednesday with a gain of 227.51 points or 0.85%. The S&P 500 closed at 3,226.56 for a gain of 29.04 points or 0.91%. The Nasdaq Composite closed at 10,550.49 for a gain of 61.91 points or 0.59%. The VIX Volatility Index was lower at 27.76 for a loss of 1.76 points or -5.96%.
Wednesday’s Market Movers
U.S. indexes closed higher Wednesday, marking a fourth day of gains for the Dow Jones. A Covid-19 potential vaccine and earnings from Goldman Sachs (GS) were top catalysts.
Earnings reported on Wednesday included:
The virus-induced economic slump is playing havoc with company profits, and with many financial ratios. One that isn’t too distorted is the price-sales ratio.
That’s a stock’s price divided by the company’s sales per share. General Motors Co. (GM) has a low price-to-sales ratio of 0.26, while Tesla Inc. (TSLA) has a high one, 10.93.
In normal times, the average price-sales ratio is about 1.5. Today, the average ratio is higher, at 2.1, partly because the Federal Reserve is keeping interest rates low, trying to goose a troubled economy.
The stocks I’m recommending today all sell for less than 1
Ford Motor Co. (F) released its second quarter China sales on July 9. Quarterly sales rose on a year-over-year basis thanks to "strong demand following the lifting of COVID-19 pandemic restrictions." In addition, strong sales at the commercial vehicles and luxury segments helped results.
Unlike Ford, Detroit-based automaker General Motors Co. (GM), which reported sales on July 3, posted a sales decline of 5.3% to 713,600 units in China.
Overview of the quarter
Ford sold a total of 158,559 vehicles in the second quarter, which reflected a gain of 3% from a year earlier. The quarter also saw roughly 79% sales growth
Detroit's big three automakers, Ford Motor Co. (F), General Motors Co. (GM) and Fiat Chrysler Automobiles NV (FCAU), have all seen their values beaten down upon the release of second-quarter sales figures.
In stark contrast, electric vehicle producer and news superstar Tesla Inc. (TSLA) has seen its price skyrocket throughout 2020 on the heels of first-quarter profits and consistent vehicle deliveries. In the last month alone, Tesla has increased its market cap by almost $70 billion, the combination of all three traditional automakers' market caps.
Compared to 2019, the 433,869 vehicles that
In the first half of 2020, most car manufacturers are seeing decreased sales.
General Motors (GM) recorded a 7% decrease in total vehicle sales in the U.S. during the first quarter of 2020 compared to the year-ago quarter, with sales falling 34% year over year in the second quarter. Ford (F) saw a 21% decline in wholesales and a 15% decline in revenue year over year in the first quarter, with sales falling by a third in the second quarter compared to the prior-year quarter. Fiat Chrysler (FCAU) reported a 15% decrease in revenue in the first quarter compared to
Automaker General Motors Co. (GM) released its second-quarter sales report on July 1. Quarterly sales slipped due to the impact of the coronavirus pandemic.
Performance at a glance
The Detroit-based automaker delivered 492,489 vehicles in the second quarter, down 34% year over year.
Company’s retail sales, however, showed signs of recovery. While retail sales plunged 35% in April, it “recovered significantly in May and June with year-over-year declines of around (20%) or less."
In a statement, Kurt McNeil, U.S. vice president of sales operations, said:
“GM entered the quarter with very lean inventories and our dealers did a great
Tesla Inc. (TSLA) dethroned Toyota (TM) as the most valuable car company in the world this past week. Shares of the Palo Alto, California-based carmaker have almost doubled so far this year despite the ongoing pandemic, while its peers stumbled and had to cut their dividends to preserve cash flow. Is it still justifiable to value Tesla as a car manufacturer at this point?
On Thursday, Tesla registered a market capitalization of $224 billion, while Japan's Toyota ended up with $204 billion. On the other hand, Detroit-based auto manufacturers Ford (F) and General Motors (GM) together were valued at $60
General Motors Corp. (GM) is betting big on electric vehicles. The Detroit-based automaker plans to spend $20 billion over five years to electrify much of its product lineup. However, whether that investment will result in a new generation of profitable EVs is not yet clear.
Making EVs for a profit
GM’s roadmap to full electrification calls for a relatively slow and steady start. This makes sense in light of the fact that the company currently produces just one EV model for the U.S. market, the Chevrolet Bolt. Next year will see just two more additions
Even before the financial crisis struck in 2008, General Motors Co. (GM) was in dire straits. Faced with a punishing recession, the debt-laden, money-losing automotive juggernaut had no alternative but to seek bankruptcy protection and a government bailout.
More than a decade later, with recession once again biting into the American economy, GM is looking much better. Rather than fighting for survival, the venerable Detroit automaker is gearing up for an ambitious strategic pivot. Specifically, the company is going all-in on electric vehicles, a bet that carries considerable risk but also massive opportunity.
Betting on the
For years, Berkshire Hathaway (BRK.A) (BRK.B) has been hoarding cash, amassing a warchest that could be deployed to great effect in the event of a market shock, much as it did during the Financial Crisis.
Yet, when the market finally stumbled in the face of severe economic headwinds brought about by the outbreak of the Covid-19 pandemic, Buffett was nowhere to be seen in the markets.
Cash as a call option
As I have discussed in previous articles for GuruFocus, Berkshire’s cash pile has widely been viewed as a powerful resource
Shares of used car retailer CarMax Inc. (KMX) tumbled over 4% after posting first-quarter 2021 financial results before the opening bell on Friday.
Like many other dealerships and automakers, the Richmond, Virginia-based company has felt the effects of the coronavirus lockdown as it closed or reduced operations at roughly half its more than 200 stores. It also furloughed 15,500 employees, stopped store expansions, reduced inventory levels and halted its share repurchase program. The company also noted that more than 80% of the days in the quarter, which ended May 31, were negatively impacted by the “mix of store closures and
Thousands of retail investors have been piling into bankrupt company stocks over the past few weeks. This new trend has driven some alarming moves in the stock market since the coronavirus crisis began at the end of February earlier this year.
Stocks that have succumbed to this speculative frenzy include car rental group Hurtz (HTZ) and U.S. retailer JC Penney. Both companies have seen their stock prices more than double, even though they declared bankruptcy earlier this year. Hertz was, at one point, one of the most bought stocks on the free-trading app Robinhood. Its stock rallied 800% after declaring