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General Motor, Where Will You Go?

|Includes: General Motors Company (GM)

In 2008, Fed gave 50 billion$ financial aid to General Motor to

avoid the collapse of this big company. With the crisis passing

over, GM is doing better and better now.

GM emerged from bankruptcy, and started to make money now.

In the first half of 2012, GM has a profit of 2.5 billion$ after tax.

In 2010, GM made 4.7 billion $. In 2011, GM made 7.6 billion$.

GM sold properties and equity to pay off the debt to Treasury.

25 billion $ has been paid off. The left 25 billion$ was paid with

27% percent of whole shares of GM, approximate 500 Million sh

ares. The break even price for Treasury is 53$/share. Now,

GM is hanging around 24$.

Where will GM go now?

Please Check here for new update.

It should be upside, though the economic environment

is still quite complex. My reasons are in the following.

1. GM has very good performance in China.

China is the No.1 automobile market in the world. GM has spents

years of time to developing the market and brand good reputation.

GM got big success in China. The number of Buick brand automobile sold in China is 4 times of that sold in America. It is a huge success. Without China market, Buick could already be gone

with Saturn, Pontiac Saab, when GM dropped those brands in 2009.

China Automobile market is still growing. And GM will keep benefiting from this market.

In Aug 2012, the conflict between Japan and China is rapidly aggravated when Japan government announced the nationalization of Diao yu Island. China government released several official documents and laws to claim the sovereignty of Diao yu Island, and warn Japan several time about their wrong estimation.

Protest and parade bursted out in many metropolitan areas of China. Many Japan brand cars were damaged on site.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.