According to the 13F, Macnguyen had 2.1 million shares of General Motors (NYSE: GM) in his portfolio at the beginning of April. Business was down slightly in the first quarter of 2013 versus a year earlier, partly due to weak European sales, but analysts are bullish on the auto industry in general. In the case of GM, this is supposed to result in substantial earnings growth over the next several years. GM trades at 12 times trading earnings, but the five-year PEG ratio is only 0.7.
"Think of that as a bit of lube for you before your "earnings" come out"
Now, Webby, let's not be so crass. You're a (former) officer, can you also be a gentleman?
Q1 results makes clear that GM is cutting its costs and losses in Europe. At some point, perhaps soon, the surprises coming out of Europe will be on the upside. Or, in statistical language, even serial correlation tend to eventually break.