December's weaker-than-expected auto sales figure could still be putting some pressure on the stock I suppose, but this Mulally nonsense has been dragging on for months. To have the unclarity removed should be seen as a good thing.
The reason for the stock failing to gain steam comes from one of three reasons (in my mind):
- Investors are not yet aware of the decision.
While it's a possibility, I sincerely doubt it. This is 2014, and news travels awfully quick. Still, it's possible.
- General Motors (GM) has had so many positive catalysts, along with short-term headwinds removed, that shareholders have sold F in favor of GM.
This seems quite logical actually. The Treasury recently exited its position in GM, while the company announced a seamless change in leadership from Dan Akerson to Mary Barra.
The company's luxury line, Cadillac, saw sales soar 21.9% in 2013, while GM's sales as a whole climbed 7% year-over-year. A respectable increase, considering that 2012's sales were nothing to sneeze at. Also, the Cadillac CTS just won the coveted Motor Trend Car of the Year award.
So there are definitely some reasons for investors to be excited about what's going on at GM. (I am, although I'm not an investor!).
- Investors were concerned about a Mulally departure, but are now worried about an actual succession plan.
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