It looks like Kyle Bass sees the same value in GM that we at T&T Capital Management (TTCM) have been pounding the table on for quite some time. http://seekingalpha.com/article/453621-general-motors-stock-price-is-far-too-pessimistic  GM has traded at an extremely low multiple to earnings and on an EV/EBITDA basis.  The government ownership overhang has likely been a big contributor and I believe that market participants have underestimated the large pent-up demand for vehicles as we emerge from the Great Recession.  GM was one of the most poorly run large companies in the world prior to going bankrupt, but it was very much cleansed during the bankruptcy process and was able to shed many of its oppressive liabilities.  There is still work to do to reduce bureaucracy but the company is making progress.  Once the government exits, I would expect to see more activism unless the company gets ahead of the curves as far as returning capital to shareholders’ via dividends and stock buybacks.

 

 

 

 

http://www.bloomberg.com/news/2013-12-04/hayman-s-bass-says-gm-is-most-compelling-risk-reward-situation.html