The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
In today's edition, Brendan and Austin discuss three reasons to sell General Motors. While not explicitly a sell recommendation -- Brendan actually thinks GM is a dirt cheap stock and a great buy today -- we think it's best for investors to look at all sides of the coin when evaluating companies. One reason to consider selling GM is if Europe gets much worse. GM has lost $15 billion in Europe since 1999, and GM's underlying problem on the continent -- overcapacity -- still hasn't been addressed. Another reason to potentially sell GM is if it starts to churn out bad vehicles. GM has done a much better job recently of making quality cars, but if it slips up in this regard, it could lose some customers forever in such a competitive industry. Finally, considering the U.S. government still owns more than 30% of GM's shares, GM's stock price could be depressed when Uncle Sam decides to unload its shares. Check out the video below for more analysis on when investors should consider selling GM.
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