Gary Bourgeault
Long only, research analyst, portfolio strategy, media

As Goes GM, So Goes American Axle & Manufacturing

With General Motors (NYSE:GM) accounting for about 70 percent of the business of American Axle & Manufacturing Holdings Inc. (NYSE:AXL), the performance of the automotive giant is directly tied to the success of AAM. That is a strength when GM is doing great, and of course a huge weight on the automotive supplier when orders and sales are down at GM.

Of the $756 million in sales generated in the first quarter of 2013, $567.9 million were from General Motors, and the remaining $188.1 million from other sources.

The firm recognizes its extreme vulnerability because of so much reliance on the performance of GM, and is taking measures to address the problem, although not always successfully....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details