General Motors Company
Thesis
Gavin Baker believes that General Motors is undervalued due to a misperception in the market regarding its cash flow and share repurchase strategy. With a low PE ratio and significant revenue growth per share, he sees potential for substantial shareholder benefits over the next few years as the market begins to recognize these fundamentals.
Did it work?
The pitch is a multi-year re-rating thesis predicated on the market eventually recognizing GM's cash flow, buybacks, and low PE valuation, but no price performance data is available and the time elapsed since the pitch is unknown. Without either a measurable return or confirmation that the thesis's catalysts (sustained buybacks and a valuation re-rating) have occurred, there is no basis to judge success or failure. The outcome remains an open question.