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SVTPerformance's Chain of Restaurants
Road Side Pub
Manufacturer 84 at 0%
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<blockquote data-quote="Weather Man" data-source="post: 16473906" data-attributes="member: 137766"><p><span style="font-size: 22px"><strong>General Motors seen sitting on valuable EV assets</strong></span></p><p>Aug. 18, 2020 10:49 AM ET|About: <a href="https://seekingalpha.com/symbol/GM" target="_blank">General Motors Company (GM)</a>|By: <a href="https://seekingalpha.com/author/sa-editor-clark-schultz" target="_blank">Clark Schultz</a>, SA News Editor </p><p></p><p></p><p>Morgan Stanley dives into the long-time question of how to value the EV business if General Motors (<a href="https://seekingalpha.com/symbol/GM" target="_blank">GM</a> -0.1%) were to fire off a spinoff, calculating the total Ultium business at $20B or $14 per share.</p><p></p><p>"There are major advantages for Ultium to work within GM, but we also see material risk that the unit may be afforded sufficient autonomy to move quickly to attract capital and top talent. As such, we must acknowledge the risk that GM's BEV technology may be chronically undervalued or even permanently impaired," warns analyst Adam Jonas.</p><p></p><p>"We believe the 'shot clock' on EV/batteries and how the market may value or devalue GM's EV assets will be set by a number of upcoming catalysts... including Tesla's September 22nd Battery Day, the launch of the Tesla Cybertruck (late 2021) and other upcoming events related to capital formation in the BEV business including what we expect to be an elevated pace of capital raising within the private domain and related liquidity events," he adds.</p><p></p><p>On the rising subject of spinning off the Ultium/EV assets, Jonas thinks a pure-play legacy operation can more freely return cash to shareholders during its run-off phase without the burden of investment in growth capex that may be loss-making for years. "At the same time, the future-positioned/growth opportunity can start with a clean-sheet in a division entirely focused on disrupting the status quo without any inherent conflict of interest within the parent company and with a focus of mission that is more aligned to the hardware and software engineering talent needed to execute a strategy over a cycle," he notes.</p><p></p><p>Morgan Stanley has an Overweight rating on GM and price target of $46 vs. the <a href="https://seekingalpha.com/symbol/GM/ratings/sell-side-ratings" target="_blank">average Wall Street PT</a> of $38.41.</p></blockquote><p></p>
[QUOTE="Weather Man, post: 16473906, member: 137766"] [size=6][b]General Motors seen sitting on valuable EV assets[/b][/size] Aug. 18, 2020 10:49 AM ET|About: [URL='https://seekingalpha.com/symbol/GM']General Motors Company (GM)[/URL]|By: [URL='https://seekingalpha.com/author/sa-editor-clark-schultz']Clark Schultz[/URL], SA News Editor Morgan Stanley dives into the long-time question of how to value the EV business if General Motors ([URL='https://seekingalpha.com/symbol/GM']GM[/URL] -0.1%) were to fire off a spinoff, calculating the total Ultium business at $20B or $14 per share. "There are major advantages for Ultium to work within GM, but we also see material risk that the unit may be afforded sufficient autonomy to move quickly to attract capital and top talent. As such, we must acknowledge the risk that GM's BEV technology may be chronically undervalued or even permanently impaired," warns analyst Adam Jonas. "We believe the 'shot clock' on EV/batteries and how the market may value or devalue GM's EV assets will be set by a number of upcoming catalysts... including Tesla's September 22nd Battery Day, the launch of the Tesla Cybertruck (late 2021) and other upcoming events related to capital formation in the BEV business including what we expect to be an elevated pace of capital raising within the private domain and related liquidity events," he adds. On the rising subject of spinning off the Ultium/EV assets, Jonas thinks a pure-play legacy operation can more freely return cash to shareholders during its run-off phase without the burden of investment in growth capex that may be loss-making for years. "At the same time, the future-positioned/growth opportunity can start with a clean-sheet in a division entirely focused on disrupting the status quo without any inherent conflict of interest within the parent company and with a focus of mission that is more aligned to the hardware and software engineering talent needed to execute a strategy over a cycle," he notes. Morgan Stanley has an Overweight rating on GM and price target of $46 vs. the [URL='https://seekingalpha.com/symbol/GM/ratings/sell-side-ratings']average Wall Street PT[/URL] of $38.41. [/QUOTE]
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SVTPerformance's Chain of Restaurants
Road Side Pub
Manufacturer 84 at 0%
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