General Motors reported its results for the fourth quarter and it disappointed Wall Street. At the market opening Thursday sent GM shares down $0.85.
But the road come to actually look at the details, and they decided that things were not so bad for GM finally. And two hours into the trading day the stock positive.
GM profit amounted to $0.67 per share, excluding a one-time charge of $0.10 in the fourth quarter. Result was $0.57 better than in the previous year, but it is nowhere near the $0.88, which analysts had expected. Sales missed even Wall Street pay. The top-line company in the last quarter was $40.5 billion, about $580 million below analyst consensus.
What this fee was $0.10 of the result of the each share took? It was part of the company notice of the brands in Europe, and manufacturing operations in Australia.
North America profit before tax of the company $1.9 billion in the quarter were $800 million more than in the previous year. Even his troubled Europe improved $500 million compared to the previous year; lost this year Europe only the firm $300 million before taxes, compared with 2012 $800 million deficit.
CNBC-Le Gina Sanchez, founder of the global Chantico, thinks General Motors is on the right track and still likes the stock.
"One of the reasons for its earnings miss was over a $700 million, which Chevrolet in Germany took them to the closure of the brand", says Sanchez. "At the end will be positive, because they've had pretty confused brand strategy in Europe."
Sanchez noted that in the United States, the company remained profitable and is under new management, with CEO Mary T. Barra at the top of the company three weeks ago.
Read more: GM reports lower-than-expected 4Q-Gewinn
"Barra is just come and they are positive, the launch of a series of changes in the management of the entire GM, I think", says Sanchez, who believes that the market is underestimating the future of the company.
"This was in a recession is pricing", Sanchez says. "We are not in a recession. So, I think, at 8.3 times [price-earnings-multiple], I think, that's an interesting camp. "
Jeff Tomasulo, managing partner of Belpointe alternative investments, believes that GM stock charts tell a different story.
"Price says it all and now, the price is to say it is very bearish," said Tomasulo. "GM had a big movement at the top in 2013 and end [year] made it the 52-week high. Since we are almost 16% - double what the S & p is down."
Tomasulo says that he is concerned that technically important 50 - and 200 days moving the stock below its average broke. Now it is quite close to what he, as important support between $33.50 and 34 sees US dollars per share. For those who believe that the fundamentals are positive, and wins the day with the stock, can be used as entry points, after Tomasulo these levels.
"You now can buy a bit of GM", says Tomasulo. "At these levels, you put an end. "I think that you actually use Gina's fundamental analysis and maybe could make money."
Check out the video above, the full discussion on General Motors with Sanchez about the basics and Tomasulo on the technical data.
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