Did you hear the one about the car company that's actually not a car company? Well, OK, it's kind of a car company, the way the banker who lives across the street from me is kind of a full-time golfer.
Allow me to explain. GM
Financing's outperformance is old news, and depending on it for an earnings boost is something GM shares in common with rival Ford
Is GM running out of ideas? Revenues rose 7% on the quarter, but North American market share dropped a full point as competitors such as Toyota
The brightest note was probably the 45% earnings boost in GM's Asian operations, where the firm has made some profitable gains in market share.
Looking forward, GM is maintaining its $7 per share earnings outlook. While that puts it at a forward P/E of 6, with a 4.5% dividend yield, I tend to agree with Mathew Emmert's assessment in the latest issue of Income Investor. This is a mediocre firm in a low-margin industry amid a period of slowing growth -- with a ton of cutthroat competition. Investors can find plenty of other companies with better promise for rewards and fewer risks.
For more auto industry Foolishness: