GM Stock: Is No. 1 U.S. Automaker A Buy Now?


Has been on the tip of everyone's tongue lately lately but our Dan Nathan season other auto stop. That is ready to read higher. He's over the plasma for a fast pitch. Dan It's all yours let's talk about. Gm a little bit like as we were just talking about the other other one the The Tesla here. The fever might have broken a little bit. There's obviously a lot of excitement. I mean Kathy would just laid it out excitement about the opportunity Thomas. Obviously Electric vehicles is a big one. But I think to not think about this as it relates to. GM would be a big mistake. The company reported there and they got it for twenty twenty today and miraculously Scott Stock was not down. Its competitor is down nearly ten percent on its outlook here. So after that strike last year the Q.. Four was a bit of a disappointment. I think investors are okay with the Stock Valuation here trading at mid point of the five year range here and they possibly see some upcoming catalysts for this thing. You Obviously Watch Super Bowl. You saw that King. Jane's the goat in the NBA is going to be hocking their Electric vehicle they're Hummer. That's going to be out in May or at least released in May and that that might be a catalyst for the stock going forward and then today the head of their crews unit. That is the autonomous driving unit was talking. We're not some big big numbers about the opportunity. There maybe eight trillion dollar market. For ride hailing autonomous. They have a big stake in crews. That could be a catalyst for this stock going forward and then lastly let's just look at the technicals here. You know to me this thing might set up as a really good trait into the spring especially if we have a stable market. Let's go to the charts. This is the one year charts obviously been in a pretty well defined down trend. It's down about sixteen percent from its fifty two week highs but look at this low last week you can just draw a line make a nice little double bottom there. It's really got a hold that thirty three level level but to my eye you might be able to see a breakout of that downtrend on any decent news going forward and then the last one I just WanNa look at. This is the TRAE This is the chart since it's two thousand and ten re IPO after the financial crisis here. There's the line that's the uptrend you see that. It held it to a tee as my main man Carter would say to the petty to the the Penny. So that's really weird. You WanNa stop this thing out and I'll just mention another thing. If you want to do this you want to look out to the spring. And you want to say that that e- launch could be a big catalyst catalyst for this company. And then maybe some enthusiasm about Tesla flows into some of these competitors are coming into the market. One Way to play this is you could look out to June expiration. The June thirty five calls with the stock at thirty five dollar eighty. That's five percent of the stock price. That is your stop in this thing. So I like this as a define risk trade right here and the stock sets up up pretty nicely. It's fairly cheap. There's some catalysts obviously if we have an economic downturn globally. They're going to sell less cars. This is going to break. That's why I think you defined your risk in this one

Coming up next