GM could be a very good opportunity for the investors

30 mag 2020

With the market cap of 37 billion USD, this is one of the most under-valued companies according to analysts. It is also important to mention that the net income in 2019 was 6.7 billion USD while the net income in 2018 was 8.01 billion USD. GM reported recently that it will suspend its dividend and buybacks to preserve cash for investing in the business which is not bad news in this coronavirus environment. Another important information for potential investors is the fact that Berkshire Hathaway increased its position in GM by 37% in 2018 and by 4% in 2019. With 75 million shares, Berkshire Hathaway is General Motors' fifth-largest investor, holding more than 5% of the car company's shares outstanding.

When we take a look at the one-year chart, we can see that the price dropped from 42 USD to 15 USD and started to raise. On this chart, I marked resistance and support levels. Supports levels are 20 USD and 15 USD, 30 USD and 34 USD represent the resistance levels. If the price jumps above 30 USD it would be a "BUY" signal and we have the open way to 34 USD. Rising above 40 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. If the price falls, every price in a range from 15 USD - 20 USD could be a very good opportunity to invest in General Motors.