General Motors (NYSE:GM) is one of the largest automobile manufacturers in the world, by unit sales. In 2016, they were the third largest manufacturer with 9.6 million units sold.
However, despite the global reach, GM as an investment is almost totally dependent on the North American unit, which contributed 4 million of their 2016 sales. North America accounted for almost 90 to 93% of their EBITDA from 2014-16, as profits from China cancelled out the losses from Europe, South America, and International Operations.
This concentration of profitability in North America has the market concerned about falling vehicle residuals, their growing reported debts, and impact of the anticipated sale of the Opel and Vauxhall brands.
My analysis shows that the threat of falling vehicle residuals is minor, the debt structure, once properly understood, is remarkably low, and the disposition of Opel and Vauxhall will improve EBIT performance going forward.
Assuming the Opel and Vauxhall sale completes in 2017 and results in $4.5 billion in restructuring charges, I anticipate that GM will still report earnings of $5.7 billion for 2017, or EPS of $3.75. Free Cash Flow will be stronger, with my forecast at $9.3 billion. As a result, I have entered into a long position in GM, as their market capitalization of $47 billion is very low against their earnings and cash flow generating power.
Hot China Stocks To Watch For 2018: Clean Diesel Technologies Inc.(CDTI)
- [By Monica Gerson]
Clean Diesel Technologies, Inc. (NASDAQ: CDTI) is projected to post a quarterly loss at $0.18 per share on revenue of $10.25 million.
Sphere 3D Corp. (NASDAQ: ANY) is estimated to post a quarterly loss at $0.11 per share on revenue of $22.10 million.
Hot China Stocks To Watch For 2018: Renesola Ltd.(SOL)
- [By Monica Gerson]
ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 9.76 percent to $1.35 in pre-market trading. ReneSola reported Q1 earnings of $0.06 per share on revenue of $260.7 million.
- [By Lisa Levin] Gainers
Aimmune Therapeutics Inc (NASDAQ: AIMT) shares jumped 35 percent to $34.64 in response to failed DBVT peanut allergy trial.
Exactech, Inc. (NASDAQ: EXAC) shares surged 30.9 percent to $41.88 after the company agreed to be acquired by TPG Capital for $42 per share in cash.
Dextera Surgical Inc (NASDAQ: DXTR) shares climbed 27.6 percent to $0.238 after surging 40.48 percent on Friday.
Petmed Express Inc (NASDAQ: PETS) jumped 21.8 percent to $44.73 as the company reported better-than-expected Q2 results.
SenesTech Inc (NASDAQ: SNES) shares surged 21.7 percent to $1.95 after the company disclosed that Univar will be marketing and selling ContraPest.
Yulong Eco-Materials Ltd (NASDAQ: YECO) shares gained 18.3 percent to $0.560.
One Horizon Group Inc (NASDAQ: OHGI) shares rose 18 percent to $1.18.
Atossa Genetics Inc (NASDAQ: ATOS) shares climbed 18 percent to $0.566. Atossa Genetics is schedule to host a conference call to announce preliminary results from Phase 1 study of oral Endoxifen on October 25, 2017.
ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 15.3 percent to $2.72
Renren Inc (NYSE: RENN) shares gained 11.9 percent to $10.71 after gaining 2.68 percent on Friday.
Kalvista Pharmaceuticals Inc (NASDAQ: KALV) shares rose 11.8 percent to $12.59. KalVista Pharma 13D filing from Longwood Fund showed registration for an 8.7 percent stake.
Xunlei Ltd (NASDAQ: XNET) shares gained 9.4 percent to $7.20 after surging 25.33 percent on Friday.
VF Corp (NYSE: VFC) shares surged 7.1 percent to $71.09 after the company reported upbeat earnings for its third quarter and raised its FY2017 guidance.
CAI International Inc (NYSE: CAI) rose 6.6 percent to $39.70. Cowen & Co. upgraded CAI from Market Perform to Outperform.
Agenus Inc (NASDAQ: AGEN) shares gained 5.7 percent to $4.58 as the company disclosed that GSK's shingle vaccine received FDA approval.
Deltic Timber Corp (NYSE: DEL) shares climbed 5.6 percent to $94.11
- [By Monica Gerson]
ReneSola Ltd. (ADR) (NYSE: SOL) is estimated to report a quarterly loss at $0.04 per share on revenue of $256.05 million.
America’s Car-Mart, Inc. (NASDAQ: CRMT) is projected to post its quarterly earnings at $0.58 per share on revenue of $149.13 million.
- [By Monica Gerson]
Wall Street expects ReneSola Ltd. (ADR) (NYSE: SOL) to report a quarterly loss at $0.04 per share on revenue of $256.05 million. ReneSola shares gained 2.50 percent to close at $1.23 on Friday.
Hot China Stocks To Watch For 2018: Sina Corporation(SINA)
- [By Shanthi Rexaline]
SINA Corp (NASDAQ: SINA), which has a stake in Weibo, also tumbled.
Weibo confirmed that the State Administration of Press, Publication, Radio, Film and Television of the People’s Republic of China or SAPPRFT has ordered local authorities to take measures to suspend audio and video services of some internet companies.
- [By Leo Sun]
Warren Buffett famously told investors to be “fearful when others are greedy, and greedy when others are fearful.” Dedicated followers of that mantra would probably dismiss Chinese online media giant SINA (NASDAQ:SINA) — which rallied 120% over the past 12 months to a six-year high — as a “greedy” play.
- [By Ezra Schwarzbaum]
It was quickly followed by two other Chinese social media sites: SINA Corp (NASDAQ: SINA) and Momo Inc (ADR) (NASDAQ: MOMO).
Weibo issued a press release later in the day saying it would cooperate with the State Administration of Press, Publication, Radio, Film and Television.
Hot China Stocks To Watch For 2018: Euro/Yen(EJ)
- [By Belinda Cao]
E-House China Holdings Ltd. (EJ), a real estate brokerage, gained 9.2 percent to $9.70, extending it advance to a third week. Its American depositary receipts retreated 3.1 percent Sept. 20 from the highest level since May 2011.
Hot China Stocks To Watch For 2018: Netease.com Inc.(NTES)
- [By Joe Tenebruso]
Shares ofNetEase (NASDAQ:NTES)popped 20.1% last month, according to data provided byS&P Global Market Intelligence, as the Chinese internet technology company’s strong fourth-quarter earnings report was applauded by investors.
- [By Sreekanth Anasa]
Shares of Hangzhou, China-based NetEase Inc (NASDAQ:NTES)popped 14% in the Feb 16th trading session after the company reported stellar Q4 and full-year 2016 earnings on Feb 15th after market close. The Chinese online gaming giant delivered an EPS of $4.30 on revenues of $1.74B beating EPS estimates by $0.86 and revenue estimates by $16oM. NetEase’s revenue grew by an impressive 53.1% YoY for Q4 and 67.7% for the full year 2016. On the back of these strong numbers, NTES stock closed at an all-time high of $298.73 in yesterday’s trading session. NTES stock might have gone up very high too soon. There could be a correction around the corner but still NTES stock is a great long-term proposition with much more upside left. Here’s why.