Selling GM?

Updated

In this video, Motley Fool analysts Austin Smith and Blake Bos follow due diligence by discussing the reasons to sell General Motors shares.

The first reason to be bearish on GM's stock is the company's ongoing turnaround plan, the success of which is vital. History shows that turnarounds more often fail because they are so difficult to execute. In the case of GM, this process is not made any simpler due to the size of the company, the complexity of manufacturing operations, and the amount of lost ground it still has to make up. The second fear is related to the GM's CEO, Dan Akerson, and his ability to change the inflexible and tight culture of the company. The last reason concerns its lost market share during the bankruptcy filing and the tight competition from other car makers to capture more market share.

It's true that decades of mismanagement of General Motors led to a painful bankruptcy in 2009, but it emerged a leaner, stronger company. GM's turnaround, however, is still a work in progress. Investors around the world are wondering if GM has what it takes to reclaim its former glory. John Rosevear has put together a brand-new premium research report telling you what you need to know about GM and its turnaround. If you own or are thinking about owning GM, then you don't want to miss this report. Click here now to get started.


The article Selling GM? originally appeared on Fool.com.

Austin Smith owns shares of General Motors Company and Ford. Blake Bos has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published