A Deep Dive Into General Motors' Uncertain Future

Jun. 02, 2023 12:28 PM ETGeneral Motors Company (GM) StockGM42 Comments
Manuel Paul Dipold
2.3K Followers

Summary

  • General Motors faces declining sales, particularly in China, which accounts for 20% of its revenues.
  • The company is primarily focused on the North American market, with little presence in Europe and South America.
  • Despite a low valuation and dividend payments, the investment risk-reward ratio is not favorable due to uncertainties in the rapidly changing automotive market.

Klassischer roter 4-türiger Cadillac-Motorwagen aus den 1950er Jahren, der an der Strandpromenade geparkt ist.

umdash9/iStock Editorial via Getty Images

Investment Thesis

General Motors (NYSE:GM) has a low valuation on the surface, is profitable and pays dividends. However, a closer look shows that the number of cars sold tends to fall, especially in China, which still accounts for 20% of

This article was written by

2.3K Followers
My focus is on a total return style with long and short positions (10-30% short positions). My main expertise is the current technological and geopolitical shift with the amazing investment opportunities they offer. Therefore, I always try to find stocks or whole sectors with favorable risk-reward structures. My long investment style is a core-satellite strategy: The core consists of large caps and/or ETFs. The satellites around this core are small caps, potential 10-baggers, and undervalued stocks. In short selling, I focus on overvalued stocks that will fall back down sooner or later. My name is Manuel Paul Dipold. Born in Germany but lived 8 years in Asia. I am myself an entrepreneur and have many entrepreneur friends. I am not a professional investor but it´s a hobby I love. So I know Europe and Asia very well and seek undervalued or high-growth stocks - always with valuation, geopolitical and social shifts in mind.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GM

Related Stocks

SymbolLast Price% Chg
GM
--