According to an April 19th statement by General Motors Company (GM), its plant located in the Valencia industrial hub has been illegally seized by Venezuelan authorities. GM said that such a move could inflict irreparable damage to the company, the 2 678 workers at the plant, the 79 dealers it has as well as to suppliers of the company. The auto maker also pledged to “take all legal actions” in its defense.
General Motors shares closed higher on Wednesday, while also marking their third gain in the past six trading sessions. The stock edged up 0.30% ($0.10) to $33.79, after touching an intraday high at $34.10, or a price level not seen since April 12th ($34.29). In the week ended on April 16th the shares of the largest vehicle manufacturer in the United States lost 0.95% of their market value compared to a week ago, which marked a second consecutive period of decline. However, the stock has pared its loss to 4.44% so far during the current month, following a 4.02% drop in March. The latter has been the first monthly retreat since October and the worst performance since June 2016. For the entire past year, General Motors shares added 2.44%.
“Yesterday, GMVs (General Motors Venezolana) plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities”, GM said in a statement, cited by Reuters.
This has not been the first time, when the government in Venezuela takes over factories. In 2014, a “temporary” takeover of US cleaning products maker Clorox Cos two plants was announced.
The deepening economic crisis in the country has affected a number of other US companies, operating in different industries, with the automotive sector being severely hit.
In 2015, Ford wrote off its investment in the South American country, as it suffered an $800 million pre-tax writedown.
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding GM’s stock price, have a median target of $40.00, with a high estimate of $51.00 and a low estimate of $31.00. The median estimate is an 18.38% surge compared to the closing price of $33.79 on April 19th.
The same media also reported that 13 out of 24 surveyed investment analysts had rated General Motors’ stock as “Hold”, while 9 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the General Motors stock are presented as follows:
R1 – $33.83
R2 – $33.86
R3 (Range Resistance – Sell) – $33.90
R4 (Long Breakout) – $34.00
R5 (Breakout Target 1) – $34.13
R6 (Breakout Target 2) – $34.18
S1 – $33.75
S2 – $33.72
S3 (Range Support – Buy) – $33.68
S4 (Short Breakout) – $33.58
S5 (Breakout Target 1) – $33.45
S6 (Breakout Target 2) – $33.40
By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:
Central Pivot Point – $33.68
R1 – $34.00
R2 – $34.60
R3 – $34.92
R4 – $35.23
S1 – $33.08
S2 – $32.76
S3 – $32.16
S4 – $31.55
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