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Bear And Bull Case For General Motors

  • Growth concerns in China are dragging General Motors down.
  • General Motors is posting record numbers in the United States.
  • High yield and buybacks will hold this stock up moving forward.

Automakers around the world are among the hardest hit groups during this global selloff. They all have a common growth strategy, China. Well documented concerns over future growth potential in the second largest economy has brought General Motors (NYSE:GM) to the lower end of its 52 week range. GM has been trending lower for months over sweeping recalls, lawsuits, and simply negative sentiment in big autos.

Bear Case

GM was trading at 38.80 on March 20th, and appeared to be ready to blow through it's 52 week high of 39. Q1 earnings miss began the trend to the downside. GM began consistently setting lower highs, and lower lows.