As the automaker prepares to report earnings Thursday, some of the negatives in its outlook appear to be easing. On Tuesday, GM said
GM's stock has risen 12% since April 19, when it sank to a post-IPO price of $29.17. In midday trading Wednesday, shares were dipping 5 cents to $32.94. That's close to the $33 IPO price and not far from the $35 opening price on Nov. 18, the first day of trading.
Without question, U.S. consumers are looking hard at the Detroit Three's offerings when they shop. In April,
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Meanwhile, Chrysler has emerged as a far-stronger company than anyone expected it to be. It posted first-quarter net income of $116 million, compared with a net loss of $197 million in the same quarter a year earlier, and said its April sales improved by 22%. Of course, GM still faces questions. In the first quarter, its sales rose 9.9%, prompting IBISWorld Inc analyst Casey Thormahlen to write in a recent report that "while any growth is a positive sign, GM's sales growth is still far slower than what other manufacturers have achieved, causing the company's market share to continue declining." Thormahlen expects that GM "will display modest revenue growth and a slimmer profit margin" when it reports on Thursday. Some Wall Street analysts are nevertheless optimistic about the company, saying it will benefit from the decline in Japanese production due to the earthquake and tsunami and from a low valuation relative to Ford. On Tuesday, UBS analyst Colin Langan