GM Trades at 5.6x Earnings for a Reason; Subprime Lenders Can Too

David Einhorn of Greenlight Capital Inc. is no stranger to controversy.  Over the years, he has had a knack for shining a light on an asset and raising a valuation question.  He will wade into a capital structure issue as was the case in 2013 when he sued Apple Inc. to issue a dividend paying preferred stock.  Jeff K. Davis, managing director of Mercer Capital’s Financial Institutions Group, discusses this as well as the credit cycle for General Motors.

To read the full article in Mercer Capital’s Financial Reporting Blog, click: GM Trades at 5.6x Earnings for a Reason; Subprime Lenders Can Too.

This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.