In 2011, General Motors is become again the largest manufacturer of cars in the world after sellling 9 million cars world-wide last year. In 2008, Toyota was the leader but after the earthquake in Japan and floods in Thaïland, the japanese group fell to third place behind Volkswagen.

General Motors is trading at a very low level in relation to historic benchmarck as shown by the ratio “enterprise value/revenue” at 0.13x and the price earning ratio would be 5.3x, estimated in 2012. According to Thomson-Reuters consensus, the average target price is set at USD 32.5, which represents a potential gain of 30% on the basis of the current price.
 
Since early december, GM’s stock has initiated a bullish trend with a rise of 32%. The general bullish trend of U.S stock markets and good sales are important elements to explain why this share is skyrocketing. The 20-days moving average is still trending upward, so it could bolstered share up again.
 
However, it could be attractive for investors to take a buy order above USD 25 in closing price to target USD 28.The stop loss will be positioned at USD 24.