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Why is GM's stock price now below its IPO price of 2009?


Gorehamj
  • John Goreham
    Contributing Writer, GM-Trucks.com
    7/15/2015
    Why don't investors love GM? The company is selling record numbers of vehicles, and it does not have to pay any tax on its profits for decades due to a "unique" bankruptcy deal it struck when it restructured six years ago, The General's trucks are clobbering the Ford F-150 in overall sales, GM has innovative, and diverse green car technology to keep the government on its side, and its specialty cars like the Corvette and Camaro are the envy of the world in terms of performance, value, and sales. So why aren't investors seeing value in GM stock? If we read the reports correctly GM's stock price is 33% below the value it would have had if it had just kept pace with the S&P 500 since it was added in June 2013.

Valuewalk.com says that it could be that investors see GM as an "old-school" automaker and thus the stock value is impacted. Here are some thoughts we might add:
- Investors were once burned by GM during its restructuring.
- GM Execs may be indicted on Federal charges stemming from the ignition defect deaths (now well over 100 deaths attributed to this)
- GM seems to be doing everything in its power to be a truck company that dabbles in cars. A formula that led to its demise in 2008.
- Huge discounts on trucks may be diluting the only bright spot in moving to a truck-heavy sales sheet.

We have reached out to some GM stock experts for their opinions and will either update the story or ask them to comment directly below. What are your thoughts as GM fans, owners and enthusiasts?

Related Story - GM earns better investment rating


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