Can General Motors Drive Your Portfolio Higher?
T = Trends for a Stock’s Movement
General Motors designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun, and Wuling brand names. It sells cars and trucks to dealers for consumer retail sales as well as to fleet customers in daily rental car companies, commercial fleet customers, leasing companies, and governments.
General Motors is set to open a new $200 million plant in Arlington, Texas, designed to help the company cut logistics costs, The Wall Street Journal reports. The new metal stamping plant will reduce shipping costs by $40 million, as it’s located right next to a General Motors assembly plant. Company CEO Dan Akerson is trying to increase General Motors’s North American margins from 8 percent to 10 percent as the company seeks to stay ahead of rivals.
T = Technicals on the Stock Chart Are Strong
General Motors stock has made positive progress in the past couple of years. The stock is currently trading below highs for the year but looks to be getting ready for a push higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, General Motors is trading between its key averages. which signals neutral price action in the near term.