Quote:
Originally Posted by Hylton
The current price of the stock means little really. Just wait until the dilution comes - 2/3rds of the stock is not even being floated right now.
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It's at a PE of 11 right now (GM is going to make about $3 a share this year). They are estimated to make 5.40 a share in 2011 and over $7 a share in 2012. So, that is why some people are estimating that GM will be at $55+ in a year or so. Forward PE of less than 7 coupled with strong growth means that this stock SHOULD do well, especially considering it's at a lower PE than Ford and has a much better balance sheet. But, Ford has better management.
Also, keep in mind that the Prius sent Toyota stock flying a lot higher. If the Volt really can get 200 mpg, then I'm sure something similar will happen with GM.