A Low Risk, Potential High Return Trade...READ MORE
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| A Low Risk, Potential High Return Trade | | General Motors is an iconic company that has enjoyed the highest level of success and suffered extreme problems during its history. Those have resulted in long term trends in the stock and they have often been the results of long-term trends in the economy. However, there have been times, even in a company that depends on long term trends, for traders to benefit from short term trends in the stock. That could be the case after the company delivered good news recently.
As we explain in our recent article, the company said its earnings are picking up speed, with added momentum due to come this year from plant closures and job cuts.
GM Chief Executive Mary Barra outlined plans to shut down several U.S. factories and lay off thousands of workers. She was summoned to Washington, D.C., by lawmakers irate about the potential fallout of GM's cuts on their communities.
But now GM said that its largest restructuring since its 2009 bankruptcy will have a speedy impact on its bottom line. The cuts to its North American operations should boost operating profit in 2019 by nearly 20%, or by more than $2 billion, with more benefit expected in 2020.
This creates an unusual trading opportunity in the stock as you can see in our latest free educational article that is available right here.
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