The U.S. Treasury is selling 40% of its stake in General Motors (NYSE:GM), a sale valued at $5.5 billion. GM is the last of the big automakers still partially owned by the government after the auto industry bailout. In this video, Motley Fool industrials analyst Isaac Pino discusses why the deal has caused a short-term jump in share prices and cautions investors to take a broader perspective on this industry, and its headwinds, before basing any investment decisions on this deal.
Free Article
Join Over Half a 1 Million Premium Members And Get More In-Depth Stock Guidance and Research
Is GM a Buy After Fed Exit?
By Isaac Pino, CPA
–
Dec 19, 2012 at 7:08PM
NYSE: GM
General Motors
Market Cap
$49B
Today's Change
(3.25%) $1.11
Current Price
$35.24
Price as of June 6, 2023, 4:00 p.m. ET
The U.S. Treasury has decided to sell 40% of its stake in GM. Does that make it a buy?
Isaac Pino, CPA, has no positions in the stocks mentioned above. The Motley Fool owns shares of AIG and Ford and has options on AIG. Motley Fool newsletter services recommend AIG, Ford, and General Motors. 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.
Motley Fool Investing Philosophy
- #1 Buy 25+ Companies
- #2 Hold Stocks for 5+ Years
- #3 Add New Savings Regularly
- #4 Hold Through Market Volatility
- #5 Let Winners Run
- #6 Target Long-Term Returns
Why do we invest this way? Learn More
Stocks Mentioned
General Motors
GM
$35.24
(3.25%)
$1.11
Ford Motor Company
F
$12.93
(2.70%)
$0.34
Toyota Motor
TM
$148.48
(1.89%)
$2.75
American International Group
AIG
$55.93
(3.13%)
$1.70
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Related Articles
1 Stealth Growth Stock to Buy and Hold Until 2030
2 Growth Stocks That Could Rally Over the Next Decade
Don't Overlook This EV Stock
GM's Net Income Plunged: Why You Shouldn't Care and Why It's Still a Buy
Best Dividend Stock to Buy: AT&T vs. GM vs. Pepsi
465%
Motley Fool Returns
Market-beating stocks from our award-winning analyst team.
Stock Advisor Returns
465%
S&P 500 Returns
125%
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/06/2023.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Cumulative Growth of a $10,000 Investment in Stock Advisor
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.