Risk is the political landscape, but upside is 30% with sector P/E OF 8-11 excluding $TSLA.
You're getting fair value here with upside of forward EPS of >$10.
$10*8=80
Don't overthink it, ride the trend up. President could mess it up but until then we're wave riding.
You're getting fair value here with upside of forward EPS of >$10.
$10*8=80
Don't overthink it, ride the trend up. President could mess it up but until then we're wave riding.
Trade closed manually
Although the company is trading relatively at fair value, the release of their annual report (10-K) raised a lot of questions about their international business. Also the company's lack of scenario analysis regarding tariffs is concerning and can be seen as withholding of information. Will revisit at a later date. 2 major risk factors that caused me to remove the risk and take the early loss.
1. Tariffs on Mexico and Canada not analyzed in 10-K. About 12% of GM's long lived assets are in Mexico, to not discuss impacts of tariffs is unacceptable.
2. China competitors are producing vehicles at lower cost reducing long-term outlook on GM's international business.
Result (6%) loss in trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.