GM Performing Outside The USA

Posted by Rob

February 14, 2008

GM (GM:NYQ) announced losses of $1.5bn last year in the US; the CEO Rick Wagoner revealed profits of $744 million in far east countries including China and India.

GM was organised as a company one hundred years ago in 1908, yet GM didn’t reach the Chinese market until 1992. This shows a sharp growth in a relatively short period of time.

It is felt the bad performance in the North American market is partly to do with old-fashioned working practise that dates back over 80 years. “If GM where starting over again with the 23 percent of the US market, would it still be marketing vehicles under eight different nameplates? No.” - Fortune.com

A Look At The Chart

From the chart we can see the tail-off in price action from the highs in the last quarter of 2007. Off course the volatile US stock market will be partly to blame for this. The situation isn’t helped by weak figures for North American sales in 2007.

The price is also moving well below the 200-day moving average, and is now sitting just above the 55-day moving average. The RSI shows the price is sitting just above the 50 mark, which indicates the value of the share is considered fair at this time. It will be interesting to see which way GM’s stock turns in coming months.

Analyst opinion suggests GM:NYQ is a HOLD/OUTPERFORM on this security.

[top]