Barron's Says GM Shares Could Triple

This week's Barrons speculated that shares of GM (NYSE: GM) could almost triple from where they are trading at now. Barron's said General Motors is making large cost reductions and Barron's said the stars will align perfectly if, "the economy enjoys a second-half uptick and the housing market and consumer confidence turn for the better sooner than expected -- the stock's rebound could be quicker. Even a small improvement in sentiment could bring a disproportionate rise in the stock."

Barron's said although the next 12 to 18 months could be difficult, by 2010 GM should have its costs down by $4 to $5 billion annually. New worker contracts with the unions, pension reductions, downsizing of its workforce by 19,000, and larger sales overseas, are some of the bullish reasons outlined in this weekend Barron's column.

However, Barron's did note in the short-term a bet on General Motors could be risky because of the weak economy.

Barron's predicted GM's shares could rise to $30 per share, or even $45, in 2010 as those cost savings start to take effect.

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