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Non-Tech : GM - General Motors
GM 70.75+2.8%Nov 7 9:30 AM EST

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To: Paul Merriwether who wrote (224)8/20/1999 10:13:00 AM
From: porcupine --''''>  Read Replies (1) of 543
 
With all of it's problems, the GM 'Value' story remains intact: GM has a 'virtual license' to generate free cash flow (based upon fanatical owner loyalty among what's left of their owner base).

As problematic as its operations continue to be in the mature markets of N. America and W. Europe (like quality, innovation, and labor relations, to name just three) GM seems to be doing everything right in the growth markets of the future, i.e., the rest world.

At the Value Investing bottom line, by some calculations, when industry average p/e's are assigned to GM's non-auto-and-truck operations, Mr. Market is throwing in the world's largest carmaker for 'free'. Looked at another way near and dear to Value Investors, GM's auto-and-truck operations have a lower implied p/e than any stock on the S&P 500.

porc --':>
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