1 Big Reason This Auto Stock Screams "Buy"

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The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith discusses topics around the investing world.

In today's edition, Austin discusses General Motors, or "Government Motors" as many still call it. Fortunately for investors, the dark cloud of bailout money and the fresh memory of bankruptcy have sent this stock to stupid cheap levels. With a P/E of 5, a strong vehicle lineup, and the average age of the automobile hitting 11 years, GM is a company to own going forward. Its restructuring and its union agreements have created a leaner, more efficient manufacturer. Ultimately, though, the single biggest reason to buy GM today is China. The company's joint ventures there have the largest market share, and the country is the world's largest potential auto market. Mix in a rapidly developing economy and a rising middle class, and you have a recipe for success.

General Motors is just one of the many great companies that realize the real growth of tomorrow is international. You can learn about "3 Companies Set to Dominate the World" in a free Fool analyst report. Click here to read about them today.

At the time this article was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford.Motley Fool newsletter services recommendFord and General Motors. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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