Today’s Chart comes from finance blog Zero Hedge, which has taken a periodic interest in General Motors channel stuffing endeavors. While we don’t normally report on stock prices here at TTAC, this one is worth mentioning.
The chart, using an inverted axis, shows the relationship between GM’s month-end inventory levels, and their post-IPO share price. The lower it goes, the more inventory The General seems to have.
Channel stuffing is an addiction that GM is unwilling to get help for, and it’s always the same nasty habit of loading up dealers with big full-size trucks and SUVs (to the tune of 130 day supply levels, or more), even though that’s what got them in to the whole bankruptcy mess in the first place. But that’s ok, because their sales numbers look great, even if their share price is in the toilet.