In spite of General Motors standing poised to retake the top sales spot, Chevrolet perhaps breaking its all-time sales record, and an anticipated Buick and two new Cadillac models coming, GM's stock price got beat like a goat in 2011. On January 2, 2011 the stock traded at $37.06, on January 2, 2012, it hovered a few dimes above $20, making GM the worst-performing auto-industry stock of 2011: with a 46.1-percent drop, it edged out Cooper Tire (-41.7), TRW Automotive (-40) and Ford (-37.3).

The Motley Fool suggests the decline could be due to the Treasury's ownership of hundreds of millions of shares, keeping investors wary about buying. Europe is also considered a sore spot, with GM's operations on The Continent still in the red and there being no clear plan to turn that around (particularly with the Euro threatening to implode).

However, there is most likely more to it than that: many investors likely remaining unsure about company fundamentals, and they are likely concerned that GM (like Ford) is rated just below investment-grade by Moody's rating service, which keeps some large institutional investors out of the pool. The good news for 2012: The General' stock is trading at five times less than earnings and the outlook from all observers is uniformly positive.


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  • 119 Comments
      gary
      • 3 Years Ago
      While GM was lucky to get funding from the US government for a BK restructuring, one of the down sides is they were unable to shed any of their pension obligations. With interest rates at historic lows, pension-appropriate investments are yielding miserably low returns. When returns are low, the amount of cash GM needs to properly fund its pension obligations grows. That is the biggest thing dragging the stock down. Earnings have been good. But if a significant chunk of those earnings have to be channeled into pension funds, its not good for the stock owner. If the economy starts to grow and interest rates are allowed to rise to a more normal rate then the pension problems will largely fix themselves and the stock value will climb..
      steves1709
      • 3 Years Ago
      Well, they say buy low, sell high... Looks like it's low, so maybe a time to buy GM stock and hold a couple years...
        montoym
        • 3 Years Ago
        @steves1709
        Werd. The whole market is down right now, why would one expect the automakers' stocks not to be down as well? It's definitely time to buy.
      XJ Yamaha
      • 3 Years Ago
      A lot of you people all act like you're just now being introduced to capitalism and democracy.....yikes.
      charlie brown
      • 3 Years Ago
      This has nothing to do with the stock , When is the last time any of you haters were at a GM Dealership? Buick is outselling Lexus,Audi and Acura, with 3 vehicles in the line up! Lexus' next ES is aiming at the Buick Lacrosse,bc Lexus has fallen behind... The Chevy Cruze top 10 selling car of the year! Outsold the Corolla and Civic in June and July. Chevy Equinox #1 mid size crossover in its class, and the new Malibu is due in 13', Cadillac's is filling in it's line-up with the XTS and ATS debuting , the CTS is already a success story. Did you know Cadillac produced the fastest four door production sedan in the CTS-V??, which also out performed the BMW X5 by the way ..... SRX has also done well... What i am trying to say is GM's future is as bright as ever. .....
      stclair5211
      • 3 Years Ago
      Hope AND change!
        stclair5211
        • 3 Years Ago
        @stclair5211
        Everyone had hope and nothing changed. Same old GM. Regardless of stock price they are what they were. Builders of rebadged crap. To think I defended these idiots.
      SooooRight
      • 3 Years Ago
      Don't buy Union.
        harleydavid105
        • 3 Years Ago
        @SooooRight
        Right, buy a foreign car made by underpaid workers in a southern state so desperate for jobs that they sold out their country to build Jap and Gook cars here.
        • 3 Years Ago
        @SooooRight
        [blocked]
          harleydavid105
          • 3 Years Ago
          Must be a typo. Don't you mean Captain Oblivious.
          A_Guy
          • 3 Years Ago
          If by "even more" you mean "next to impossible to correct Bush's decade of destruction", then I totally agree. Everything else you said suggests that your meds are running out. Time for paranoia to kick into high-gear!
        caddy-v
        • 3 Years Ago
        @SooooRight
        Can you name the makers that have absolutely no union ties here or abroad in one form or another?
          harleydavid105
          • 3 Years Ago
          @caddy-v
          Sea Urchin, have you ever bought a home or had electrical or plumbing work performed. All done by union workers. Or do you live in a hollow log in the forest?
          • 3 Years Ago
          @caddy-v
          [blocked]
          • 3 Years Ago
          @caddy-v
          [blocked]
          Justin Campanale
          • 3 Years Ago
          @caddy-v
          To be honestI quite agree with Sea Urchin. This is the only reason I've only owned 1 American car in my life( Magnum SRT8). The UAW needs to die.
        tylermars.design
        • 3 Years Ago
        @SooooRight
        *facepalm*
      • 3 Years Ago
      [blocked]
        harleydavid105
        • 3 Years Ago
        Must be a typo. I think that should be Captain Oblivious.
        christopher glowacki
        • 3 Years Ago
        There he is, was wondering how long it would be before one of those insightful captain obvious posts
        caddy-v
        • 3 Years Ago
        Wonder if his mother had any kids that lived.
        amy
        • 3 Years Ago
        QUALITY JAPANESE CARS LIKE THE TOYOTA!! WHO HAD 17 MILLION IN RECALL BACK FOR SAFETY ISSUES AND DIDN'T THINK THE PROBLEM WAS THAT BIG AND HAD TO BE FINED TO GET THEM TO ADDRESS THE ISSUES? THESE QUALITY CARS HAD MORE ISSUES THAN FORD OR CHEVY. JAPANESE DON'T CARE ABOUT AMERICANS HEALTH OR SAFETY.
      johnb
      • 3 Years Ago
      Dump the Volt and the stock will rebound nicely.
        A_Guy
        • 3 Years Ago
        @johnb
        Why? A reluctant attitude and focus on better efficiency is one of the reason they were in the position they were in in the first place. The Volt's tech will trickle down to other models with a reduced price tag, and GM can remain competitive. ...or they can hope to sell more Tahoes year over year like once before while every other automaker is innovating.
      alexkoolur
      • 3 Years Ago
      Another example that the Gov't really knows how to invest OUR $ wisely....idiots
      dave and mary
      • 3 Years Ago
      The world knows that GM will rise and fall with the Volt. And from my house, that "ain't lookin' too good".
        harleydavid105
        • 3 Years Ago
        @dave and mary
        The Volt is the best and most versatile Hybrid on the market today.
      • 3 Years Ago
      [blocked]
        Justin Campanale
        • 3 Years Ago
        So Obama is the AntiChist, but Bushie boy who is a war criminal, who gave tax breaks to ultra rich CEOs, who let the middle and working class suffer while giving the upper class a free lunch, who got us into the worst financial crisis since the Great Depression, and who bought America to his knees is a hero? You must have the same brain capacity as your namesake if you believe that.
          • 3 Years Ago
          @Justin Campanale
          [blocked]
        A_Guy
        • 3 Years Ago
        Memory loss? BUSH initiated the auto bailout. Any sane leader would have done the same. Your logic in this post is all sorts of effed up.
        caddy-v
        • 3 Years Ago
        Urchin, you've been on so many sides of the fence it's impossible to make sense of anything you say. Just a short year ago you were proclaiming how you were looking to buy a Challenger or Camaro. Do you just say what you think people might like to hear just to find someone that likes you? As a contractor I do a lot of work at the local Ford stamping plant and some work as a sub-contractor at a not too distant GM assembly plant. Of all the UAW employees I encounter, maybe 2% still support the dems and the clown in charge. They all feel betrayed just the same as the rest of the country now feels. You're right about one thing but talk out the other side of your face. Buying a car is not a political decision. No one here hates the administration in charge more than me and I choose to buy GM's and Fords. How does that make me a democrat? It's a financial decision based solely on whats best for me and my company. If you want to take your anger out on unions, direct it to the public sector. There is where the enemy lies.
        twmsjr
        • 3 Years Ago
        Unions drive the price of vehicles up.
        clquake
        • 3 Years Ago
        Buying a car is not a political decision, buying a Honda does not make you a Republican or a Democrat, but buying a car made by D3 (UAW) you are making a political decision. ---------------------------------------------------------------------------------------------- This is hypocritical. If I buy a Honda, it's not political, but if I buy a D3 car, it is? Why can't I just like the car I'm buying? If I buy a Corvette, I'm supporting political decisions? What if I just really want a 'Vette? If I buy an M3, is that politically motivated? What about a Focus RS? Camaro? Fusion? Acura RDX? You don't like the D3. Fine, everyone can live with that, but what you're saying doesn't hold water.
        diamondjd
        • 3 Years Ago
        Sea Urchin - I will not buy GM cars, not for the reason you stated (UAW). Because in the top-up of Unions during the PBGC taking over Delphi pensions. GM only topped up the "some of the unions", no Salaried or White Collar jobs, and maybe some of the smaller unions that belonged to Delphi. (I guess if we were Obama buffs, not enough was given or the Unions didn't push hard enough for the non-unions to vote Democrat). I do know that my last GM vehicle was purchased in 2009, however, no more.
      wongtpa
      • 3 Years Ago
      What do you expect from government motors? Anything government does, it does badly! Would you buy a car from Obama?
        Rex Schaefer
        • 3 Years Ago
        @wongtpa
        Tea bag pinhead!
          tgsid
          • 3 Years Ago
          @Rex Schaefer
          Down-voted and reported. Very unnecessary comment.
          gryphon10
          • 3 Years Ago
          @Rex Schaefer
          Why do liberals always resort to childish insults instead of facts and intelligent rebuttals?
          caddy-v
          • 3 Years Ago
          @Rex Schaefer
          What else do they know what to say? The libs have screwed up every aspect of the American way of life and have learned from their Mesiah; blame everyone else.
        Fixitfixitstop
        • 3 Years Ago
        @wongtpa
        Why does anybody who calls out a tea party bobbing head installed get called a liberal. I am far from liberal, but I certainly not one of these America-hating neo-cons Republicans have become.
          caddy-v
          • 3 Years Ago
          @Fixitfixitstop
          You're hopelessly ignorant of what the tea party patriots are all about.
          J
          • 3 Years Ago
          @Fixitfixitstop
          >You're hopelessly ignorant of what the tea party patriots are all about. Since you're a self-proclaimed Tea Party "expert", would you care to enlighten us?
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