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Sterne Agee's Ward: $36 Price Target on GM

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    Sterne Agee senior research analyst Mike Ward weighs in on GM earnings and stock

  • Duration 2:58
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General Motors fourth quarter earnings out this morning revenue beating estimates but earnings falling short sales are up.

More than 42% over the last six months is Bernanke senior research analyst Mike -- -- been saying it's -- by.

All along so is it too late to jump -- says GM's driver seat if you well.

Mike great to see you actually hear you I know you're joining us on the telephone so welcome to you know.

I know that you have a buy rating with a price target of 36 dollars.

What will drive GM shares to that price.

Well thank you -- personal I'm Greg vehicular I think with General Motors could be -- development well was another transition year in 2011 was well.

And that's good tips Kasikov true it -- over travellers -- generated positive cash poetry is it doable to have in place.

To take advantage of a recovering economy could be current fund.

But things are not getting better in Europe right in sales there were even worse than they were before.

Lot losses -- in Europe.

No poster and nervous trouble spot and I -- -- could surprise but -- didn't put that perspective.

-- you know Europe is a manageable situation and -- took two very important steps in Europe to mitigate the impact.

In 2012 -- -- took inventory Waco and then they just you know welcomed the assets and all the boosting.

-- outlook because -- aspect of 2013.

Now some analysts though are disappoint me by GM's latest earnings release because say.

Point to the fact that GM paid buyers more working paper they offered more incentives to buyers.

And so they look at that is kind of a weakness for GN.

Well I think it's whenever you're structuring -- two components get a cost component of revenue component.

One of the things that GM has done successfully.

Is -- -- breakeven point -- North America contract.

The break even point North America they can make money and eleven union's eleven million of -- United States.

You know your productivity do is one of the things couldn't be integrated to our product gauges you have to discount it more and I think Dutch were -- -- -- to -- GM hopefully the government thirteen and fourteen -- whatever revenue part of her structuring Allred you'll probably see it does come down -- exported fourteen.

-- let's talk about the government's interest right now treasury owns 19%.

Of GM how experienced your outlook for the company.

It's still over in Asia and I think one of the -- GM bought back -- truck -- December.

The government trying to get out of it you're from now.

They're produced circumstances that would allow them to accelerate got to sit.

And won't be out to go to entertainment poll.

But it is an overhang until -- -- The government has pretty much what -- along a look at run the business but I think -- holders due to government stake has an overhang of policies -- -- the Canadian government's big -- Well all right thanks so much Mike ward 36 dollar price target.

On GM he stodgy -- trading today -- around 27 dollars a share just for perspective thanks again night.

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