בס״ד

The Company That Cannot Fumble (GM)

Posted on January 18, 2021

We’re going full-bore, old school today with a trade on General Motors Co. (NYSE:GM), the world’s latest entrant into the world of EV stock hype.

Now, she’s no Tesla; that’s for darn sure.  Which is to say, she don’t go blowing up with the same frequency.

Rather, GM has now made a strong move into the delivery/logistics market with her BrightDrop range of products, designed to help you get fatter while you order everything online and get shorter wait times for delivery.

‘Sustainablity’ is how they’re spinning it…

Last week, GM rolled out her “ecosystem of electric first-to-last-mile products” and her stock gapped higher like a sexy Silicon Valley start-up doll, with big volume to boot!

We’ll get to the charts shortly, but first, a quick scan of the fundamentals shows nothing too egregious –

  • P/E is 22.41,
  • P/B is 1.65, and
  • Dividend Yield is zippo.

  • Earnings for the year are down 15.9%, and
  • In the last eleven weeks, insiders were in full dump mode.  They sold a gargantuan $115 million in stock, representing 66.73% of their holdings.

So, apparently, we’re not the only ‘last-mile’ skeptics here.

Have a look now at the daily chart since the March Batflu bottom –

And if the G-d of Israel wills it, so will it be.

With kind regards,

Hugh L. O’Haynew

 

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