2-Star Stocks Poised to Plunge: General Motors?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto giant General Motors (NYSE: GM) has received a distressing two-star ranking.
With that in mind, let's take a closer look at GM and see what CAPS investors are saying about the stock right now.
GMfacts
Headquarters (founded) | Detroit (1908) |
Market Cap | $37.1 billion |
Industry | Automobile manufacturers |
Trailing-12-Month Revenue | $150.1 million |
Management | Chairman/CEO Daniel Akerson |
Trailing-12-Month Return on Equity | 14.6% |
Cash/Debt | $32.6 billion / $14.8 billion |
Competitors | Chrysler Group |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 1,035 members who have rated GM believe the stock will underperform the S&P 500 going forward.
About a month ago, one of those Fools, bignort2001, succinctly summed up the GM bear case for our community:
A crappy company doesn't become a good one just because the [government] owns it. The auto industry is in for decline everywhere. [A]s one of the worst players, GM will continue to look at shrinking share of a flat or smaller auto market.
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