General Motors Company (GM) Suspends Operations in Egypt


General Motors Company (NYSE:GM) said today that they will be suspending operations temporarilty in the nation of Egypt as the country’s currency undergoes a crisis. While details on how long the suspension of operations could last are lacking, it appears as if the move was made to protect the company from losses due to future currency depreciation.

The Egyptian Pound fell heavily in black market trading on Sunday while it continues to trade relatively stable versus the U.S. dollar in offical markets. While internally, Egypt is boosting their currency, black markets are trading the pound at up to 1 pound per USD lower than the Egyptian Central Back.

The stock increased 0.49% or $0.14 on February 8, hitting $28.68. About 16.25M shares traded hands. GM has declined 14.11% since July 2, 2015 and is downtrending. It has underperformed the S&P500 by 5.25%.

From a total of 10 analysts covering General Motors Company (NYSE:GM) stock, 6 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $57 while the lowest target price is $33. The mean of all analyst targets is $42.14 which is 46.93% above today’s ($28.68) stock price. General Motors Company was the topic of 22 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Credit Suisse upgraded shares on January 11 to a “Outperform” rating. Vetr upgraded shares to a”Hold” rating and a $34.50 target share price in their report from an August 11. RBC Capital Markets maintained GM stock in a recent report from October 22 with a “Sector Perform” rating. Finally, S&P Research maintained the stock with a “Strong Buy” rating in a report they issued on a September 18.

The institutional sentiment increased to 1.3 in Q2 2015. It’s up 0.15, from 1.15 in 2015Q2. The ratio is positive, as 112 funds sold all their General Motors Company shares they owned while 240 reduced their positions. 93 funds bought stakes while 365 increased their total positions. Institutions now own 1.16 billion shares which is 1.23% less than the previous share count of 1.18 billion in 2015Q2.

Oldfield Partners Llp holds 16.36% of its total portfolio in General Motors Company, equating to 7.59 million shares. Moon Capital Management Lp owns 881,087 shares representing 15.54% of their total US portfolio. Moreover, Appaloosa Management Lp has 13.51% of their total portfolio invested in the company, equating to 12.89 million shares. The New York-based Litespeed Management L.L.C. has a total of 11.29% of their portfolio invested in the stock. Peconic Partners Llc, a New York-based fund reported 2.08 million shares owned.

General Motors Company designs, manufactures and sells cars, trucks and automobile parts across the world. The company has a market cap of $44.14 billion. The Firm also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). It has 4.78 P/E ratio. The Company’s four automotive divisions include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA).