SAIC-GM-Wuling: GM joint venture in China plans $1 bln auto plant, its third in world’s biggest auto market
"... The plant will be capable of turning out 400,000 vehicles and engines a year. It will help the joint venture reach its goal of producing 2 million vehicles a year in China by 2015. ..."
SAIC-GM-Wuling will likely end 2012 with ~1.25 million cars sold. If they goal is 2 million vehicles by 2015, then we can expect a 60% sales increase within three years. Wuling sells ~47% of GM's vehicles in China.
Since the China JV's will generate an EPS of close to $1 in 2012, the above confirms my expectation that the China JV's we'll contribute about ~$2 to GM's EPS within the next five years.
Am I the only one who can see GM's stock hit $36 sooner rather than later ... $4 EPS * 9 multiple = $36
(((Am I the only one who can see GM's stock hit $36 sooner rather than later ... $4 EPS * 9 multiple = $36)))
Hey, maybe it will and maybe it won't. But one thing you have to consider is the risk you want to take with your money. If you can afford to lose, say, half your investment temporarily, while Uncle Sam dumps shares, this might be a good move for you.
But why not just wait and see what the govt is gonna do?