FinKingSG
2023-02-13

$General Motors(GM)$ While GM report all time best quarterly revenue numbers in Q4 2022, it's actual gross margin and net margin is below that of Q3 2022! It's extremely worrisome for me... that just means GM is not in a good financial position moving forward... profit margins are likely to continue going down... andgiven the price war from Tesla and Ford... GMdoes not stand a chance as its profit margin was already very low compared to the other two... I predict it's GM Q1 2023 gross margin and net margin is going to be lower than Q4 2022, and stock price is going to drop from its current 40ish to 36. 

Focus on Q4 Earnings Season
The fourth-quarter earnings season will be challenging for the overall market and individual companies.
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Comments

  • pixiezz
    2023-02-13
    pixiezz
    GM will go to and consolidate around $50 in fairly short order.
  • FinKingSG
    2023-03-13
    FinKingSG
    It happened faster than I thought! A nice 30% profit for whoever bought a Put Option at a strike price at 40.
  • FinKingSG
    2023-02-15
    FinKingSG
    "At the last Investor Day, GM promised ICE-like EV margins by 2030. Since then, battery raw material costs have dramatically spiked; therefore, it would be surprising if GM can still see EV profitability by 2025,"…Basically this is saying that by 2030 GM would be making half the profit margin % of Tesla…They may have 30b in cash with now, but they have committed to spend 10b each year for the next 3-5 years for capital expenditure to attempt to switch to EV. In order to do so, existing revenue and gross profit inevitably will take a hit for at least the next 2-3 years...


    I have added a Put Option position.
  • bubblyx
    2023-02-13
    bubblyx
    Ev's the now and future,GM better get ramping or go belly up
  • ed62
    2023-02-13
    ed62
    nice. thanks for sharing
  • FinKingSG
    2023-03-18
    FinKingSG
    $General Motors(GM)$ Droppped even more than I initially though…


    I have initiated a Call Option with a strike price of 40.
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