John WilsonGeneral Motors CorporationGMTOP PICKFeb 11, 2014

Car business is, in general, low-margin and capital-intensive. Software services opportunities have margins of 70%; contribution to income will be dramatic, even though that segment is only 15-20% of revenue. Market's overlooking that opportunity.

It's coming into support now, but if it fails at support after three days, he'll bail.

In late July, they reported an excellent quarter, taking shares to all-time highs. But oil prices have remained high and interest rates keep rising. GM has lost some of its gains, but is still up 49% this year. However, they just released heavy-duty truck models and have a growing digital services business. Business is holding up well.

The chart shows a breakout. The stock is cheap now. He bought it a few weeks ago at the neckline of the low-80s. Is a trade.

It reported a strong quarter yesterday: a big revenue beat at 2% growth, an EPS beat, margin growth and raised their full-year forecast for the second-straight quarter. Their core North American business drove the good results with steady customary demand. Full-size SUVs are in strong demand and leading the market. Amazing execution. Trades at a cheap almost-6x PE, there's plenty of upside, especially if peace breaks out between US and Iran.

#2 market share (at 13%) in EVs in the States behind TSLA. Throttling back EV aspirations, still mostly about internal combustion. Street's expecting compound earnings growth of 13% over coming 3 years (pretty good for a mature industry). Trades at 6x PE. 

Pretty good chart. A MAGA-protected stock. Cyclical tailwinds. He's not averse to owning.

Tariff talk put it in the crosshairs. But it's executed very well. Tariffs are still a headwind. Reconstructed business plan and moved away from EVs. Maintained good cashflow, and he's expecting ~$12 EPS this year. 

CEO has done a fabulous job. Very inexpensive 7x PE. Yield is 0.91%.

Sold it after the war started. The auto sector was hit hard, as seen in their RSIs.

When he bought it, the PE was very low. The CEO has done a great job and GM will earn around $11 EPS. It remained undervalued.

What's interesting about some of these domestic automakers is that they handily outperformed TSLA. 

Super-cyclical. Depends on the consumer, interest rates and, of course, CUSMA. That said, technicals look fine -- higher highs and higher lows. Has to continue to execute. Buying back shares, increasing dividend. 

A volatile industry, but GM enjoys a stronghold in the strong US market, and auto demand is recovering.

He can't predict what will happen with CUSMA. The future is too uncertain with too many macro events to own this. GM is run well, though. Take profits.

It reports Tuesday. It tends to underperform in the first hour or two of trading on reporting days, a buying opportunity. 

Buys back a lot of shares, reducing shares by 40% since end-2015. The CEO is excellent. Tariffs suppressed shares for the first half of this year, but exploded higher in the second. Has gained 51% this year, yet trades at under 7x PE 2026. Should keep climbing with more Fed rate cuts.

Stock has been acting very well lately. The car stocks have been beaten down for so long, but are now breaking out. GM has risen near the top of his relative strength rankings.