NEW YORK (TheStreet) -- Shares of General Motors (GM - Get Report) continue to be pounded lower and lower, finally breaking below $34 last week and closing Friday at $31.93, near its low that day. The last time the stock saw a price that low was in June of 2013.
The latest round of news includes controversial and inconclusive allegations that CEO Mary Barra knew about the faulty ignition switch issues in 2011. The company also announced that the recall will now cost $1.3 billion, not $750 million like investors were previously told.
Despite the pushback, "you're an idiot" slanders and general uproar I received by going against the crowd, I have argued that this recall situation is far from over.
The stock has not gone down enough since the U.S. Attorney General announced its criminal investigation in mid-March.
Must Read: Call the Cops: Apple's About to Kill Android
Investors can blindly argue that they simply bought the stock based on the news that was public at the time. But it was easy to see from the start that this issue was going to involve more than 1.6 million cars and $350 million, the initial estimated cost for the recall.
Since then, the company has recalled almost 7 million cars (many, admittedly, for other reasons than the ignition switch). That will now cost the company $1.3 billion. An additional $300 million restructuring charge in Europe, Australia and Brazil, coupled with a $400 million currency loss in Venezuela, will hurt as well.
GM's first quarter will likely be the worst since 2009.
An analyst at Barclays expects the automaker to report pre-tax earnings of $437 million, according to the Detroit Free Press.
The stock has taken a beating, no doubt. But it has deserved to take a beating. The stock is down 20% year-to-date and trades at just 6.81 times fiscal 2015 earnings.