I know a couple months ago Berkshire pumped a lot of money into GM stock. The truck and SUV market is hot right now, and if gas prices continue to be stable they could continue to sell a lot of vehicles. I am concerned that GM isn’t pushing hard enough to electrify it’s lineup given what competitors are doing. Trucks like the Escalade, Sierra and Suburban won’t have a place in a changing marketplace without changes to their powertrain. What’s missing here in the long term that I am neglecting?
Over the last week F got upgraded to buy grade from different institutions. I see F is hovering at 10 bucks a share and has been declining in a bullish market. However they are investing heavily in the future, with $11B going into electric vehicles. The F series truck is selling very well and they are doubling down on it by cutting other lines of production, and releasing a plug-in and hybrid version of the truck this year. To me this helps protect them from exposure to a growing electric vehicle base and rising gas prices.
Do you like these stocks and why? I would think if you like F for the future $9.50 to $10 a share is a good price. I think GM has come a long way and is in a good position right now, but am concerned about their sustained growth.
Submitted May 13, 2019 at 02:05PM by memerguy95 http://bit.ly/2Yr3KwZ
