- GM is now profitable.
- Trading close to book value. Buy the assets, get the income stream for free.
- Car sales are up year-to-date.
- Car manufacturers are stepping up ad spending, so this could spur even more sales.
- The government has taken an interest in the company (the taxpayer still owns about 26% of GM). This could put a floor under the stock.
- GM has experience in alternative ("green") fuels and electric vehicles, which is the current trend these days.
- Insider buying is positive. The CEO keeps buying shares.
- Internal organization is very different now than it was before bankruptcy.
- The company is making progress towards fully funding its pension plan. The "hole" came down from $17 billion to just around $10 billion in the last six months.
- The "free" income stream from the pros reason number two above can easily be destroyed by a downturn, poor management or more government intervention.
- Government still owns about 26% of the company. History shows that government is terrible at handling companies (see Post Office and and Amtrak for examples).
- Alternative fuels and electric cars are not the specialty of GM. There are better-equipped competitors out there that, albeit smaller, could eat GM's lunch in this growing sector (think Tesla, BYD).
- GM does not yet pay a dividend.
- The company's pension plan is still underfunded by a non-trivial amount ($10 billion).
Overall, I thought I'd take my chances and started a small position in GM.
Disclaimers: I own GM at the time of writing.