October 4, 2012
David Einhorn has generated some major buzz after revealing details of his investment strategy at yesterday's Value Investing Congress. During his presentation, the hedge fund manager talked up General Motors (NYSE: GM ) as a promising long-term buy that's currently undervalued, making the case that GM's "fixed costs are down, balance sheet cleaned up, and pension risk overblown." Although U.S. sales are still below normal levels, Einhorn believes that the automaker can turn around Europe by 2014 and will continue to do well in China.
Fool.com analyst Brendan Byrnes agrees with Einhorn's analysis, but points out that Europe's economy is tough to predict, and that GM is in more trouble there than Ford (NYSE: F ) . In fact, to compare the top two U.S. automakers, Ford has performed incredibly well over the past few years. It's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. However, the company's stock still seems stuck in neutral. Does this create an incredible buying opportunity, or are there hidden risks that investors need to know about? To answer these questions, Brendan has authored a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here now to learn more and get started.