Fast Money Traders Debate On General Motors Company

CNBC Fast Money's Jim Lebenthal spoke in a segment of the show called "Halftime Report" about General Motors Company (NYSE: GM). He said that a year ago General Motors Company and its earnings got hurt by a recall scandal. Lebenthal explained that Target Corporation (NYSE: TGT) was in a similar situation after a security breach and it managed to recover a year after the scandal. He added that General Motors Company is trading at 8 times this year's earnings and it reported sales that were above expectations. The most important metric for him is the price to book ratio of 1.3, which he finds attractive.Josh Brown thinks that the valuation metrics and sales reports were presented without context. He believes that forward P/E ratio is 13, not 8 and its PEG ratio is 2, which shows that it is not cheap when adjusted for growth that the company is delivering. Brown added that revenue was only 2 percent higher which justifies valuation metrics. An increase in sales of 18 percent in January 2015 should be analyzed together with a decline of 12 percent in January 2014, thinks Brown. Brown concluded that General Motors Company is going nowhere because 65 percent of the S&P 500 is trading above its 200-day moving average in an uptrend, which is not a case for General Motors Company.