Strategies & Market Trends : Value Investing

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From: E_K_S12/27/2017 9:07:14 AM
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General Motors Company (GM) - could be time for the value Buy

Been looking at GM for a possible value Buy. My modified GN model indicates it may be 35% undervalued based on $5.79/share EPS in 2018 and current stated BV of $30.71/share (per Yahoo Finance).

Analysts have earnings falling in the out years so expectations on EPS lower.

Over the weekend was an interview w/ one of the GM technologists who was quite bullish on their autonomous car projects.

General Motors said Thursday that by the end of 2019 it will be mass-producing fully autonomous electric cars.

The new revenue streams generated from GM's autonomous ride sharing venture could be the wild card that really propels EPS higher past 2019.

At the current rate of progress, GM's ride service should be ready for paying customers by the end of 2019, said Kyle Vogt, head of GM subsidiary Cruise Automation, which is developing and testing the cars along with GM engineers. The service will be rolled out on a city-by-city basis depending on demand and local regulations.


With a dividend currently generating a 3.6% yield, buying assets 30% undervalued and new potential revenue streams from their ride sharing division starting to roll out in 2019, make this an interesting value Buy.

Any opinions? No position yet but thinking of building a position in this name.

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