After a year of restructuring and bankruptcy protection, GM has steadily improved its operational efficiency and ability to compete in the global auto market.
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New York, NY (PRWEB) January 27, 2012
A recent Profit Confidential article points out that China continues to be the world’s largest auto market, with an estimated 14.5 million vehicles sold in 2011, versus approximately 12 million in the U.S. General Motors (GM) is well positioned to take advantage of this growth, according to George Leong, contributor to the esteemed financial newsletter.
“After a year of restructuring and bankruptcy protection, GM has steadily improved its operational efficiency and ability to compete in the global auto market,” says Leong. “Especially in China, where GM is the top foreign automaker.”
The new GM stock debuted at $34.00 in November 2010 before moving to $45.00. The current lows near $20.00 provide some value in GM stock, according to Leong.
“With only about one in five Chinese owning a vehicle in Beijing and 30 of 1,000 in remote provinces, there is clearly ample room for growth, especially as the income levels continue to rise,” says Leong. China accounts for about 36% of total GM sales in 2011.
While the GM story is encouraging in China, Leong prefers the smaller Chinese auto-parts suppliers. Two small-cap Chinese companies he feels that investors should look into are China Automotive Systems, Inc. and SORL Auto Parts, Inc.
“You can buy GM as a longer-term holding, but I prefer to stick my capital in the small-cap Chinese auto plays for added growth and price appreciation potential,” says Leong.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.