Is General Motors Poised to Plunge?

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 (NYS: GM) has received a distressing two-star ranking.

With that in mind, let's take a closer look at General Motors and see what CAPS investors are saying about the stock right now.

General Motors facts

Headquarters (Founded)

Detroit (1908)

Market Cap

$37.4 billion

Industry

Automobile manufacturers

Trailing-12-Month Revenue

$150.9 billion

Management

Chairman/CEO Daniel Akerson
CFO Daniel Ammann

Return on Equity (Average, Past 3 Years)

15.5%

Cash/Debt

$31.9 billion / $16.7 billion

Competitors

Ford Motor (NYS: F)
Honda Motor
(NYS: HMC)
Toyota Motor
(NYS: TM)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 22% of the 1,040 members who have rated General Motors believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, afarrell81, succinctly summed up the bear case for our community:

GM consistently lags its competitors in innovation and design. Public perception in the U.S. also took a hit with the bailout and could lead "buy-American" consumers to choose Ford over GM when purchasing automobiles in the future. Last and most importantly, GM cannot be cost competitive when you consider their higher labor costs and future obligations to their retirees. This will ultimately prevent them from being able to invest in R&D to the extent necessary to become an industry leader in innovation.

Of course, that short pitch come close to telling the entire story for GM. You're in luck, though. The Fool's brand new premium report on GM tells all sides of the story for one of the most compelling industrial companies in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Is General Motors Poised to Plunge? originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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David Ferraez

Gm is getting stronger by the day in spite of the anti american news media.....I am a Gm dealer and our business has been getting better and better. The Gm and Chrysler meltdown was tough on all of us.........we survived it. Now gm is a lean focused and profitable company. The dealer body is getting stronger by the day. Our biggest adversary is our anti american media. We can handle recessions, hurricanes, gov't motors, etc........but when our own national media is hellbent on destroying Gm it really makes one wonder what has happened to our once great country.

November 20 2012 at 3:32 PM Report abuse +1 rate up rate down Reply
John Lucas

Yes, GM is getting ready to take a plunge in cash.

http://www.news-journalonline.com/article/20121118/WIRE/311189999/1024?Title=2-years-after-IPO-GM-is-piling-up-cash

It's strange how many writers are trying to discredit GM's new success.

November 20 2012 at 9:51 AM Report abuse rate up rate down Reply