General Motors (GM, $35.93) Plans To End Operations at Oshawa Plant in Canada , To Restructure Product Line and Cut Costs
General Motors wants to shut down production in the Canadian city of Oshawa, Ontario by 2019. On Monday, GM chairman and CEO Mary Barra revealed during a conference in Detroit that the auto maker is planning to end production at the Oshawa assembly plant, along with two other facilities in Detroit and Warren, Ohio. The company apparently is looking to focus more on autonomous and electric vehicles.
According to Barra, GM's restructuring of its product manufacturing process will result in cost savings of an estimated $6 billion for the company by 2020, and might include slashing its global salaried and salaried contract staff by 15 per cent. (as reported by Canada’s CBC). But it is not yet fully clear exactly how many of the 2,500 jobs at Oshawa will be lost.
Unifor, which represents 315,000 unionized workers in Canada, said late Sunday that while it does not have the complete details yet, it knows that no GM product has been allocated to the Oshawa Assembly Plant past December 2019. The union also mentioned in the Sunday note that it had been informed that GM will "make a major announcement" on Monday that would likely affect global operations. “Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement," Unifor said.
Monday morning, thousands of General Motors assembly plant workers in Oshawa, Ont., halted production. The union is planning to hold a meeting with GM later in the day.
More than 16 months ago, GM was reportedly considering "whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic," according to Reuters, citing unnamed sources familiar with the matter. The carmaker’s steps seem to be a response to a slowing demand in the auto market.
GM's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for GM moved out of overbought territory on April 30, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 instances where the indicator moved out of the overbought zone. In of the 34 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 23, 2024. You may want to consider a long position or call options on GM as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GM just turned positive on April 25, 2024. Looking at past instances where GM's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
GM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 250 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.815) is normal, around the industry mean (6.005). P/E Ratio (6.202) is within average values for comparable stocks, (18.064). Projected Growth (PEG Ratio) (0.846) is also within normal values, averaging (5.553). GM has a moderately low Dividend Yield (0.009) as compared to the industry average of (0.043). P/S Ratio (0.362) is also within normal values, averaging (74.209).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles