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Is GM Getting Its Mojo Back?

Shares of GM popped back above their IPO price on Tuesday with the Fast gang taking a long hard look at the auto maker and related trades.

Gains were largely generated by two catalysts:

# 1 GM released new results showing its retail sales were up 25 percent, driven by strong demand for its fuel-efficient Chevrolet compact cars and compact crossovers: the Cruze, Equinox and Terrain.

The Cruze, the compact car that GM introduced last year, is now the second-biggest selling vehicle in the automaker's lineup, behind only its Silverado pickup truck. Cruze sales so far this year are about triple the sales of the car it replaced, the compact Cobalt.

#2 - UBS analyst Colin Langan upgraded shares to ‘Buy’ from ‘Neutral’ and raised his price target to $42 from $35.

Essentially Langan thinks Toyota’s, Honda’s and Nissan’s pain will be GM’s gain. In other words, as the Japan-based auto makers struggle with supply shortages following the recent earthquake, GM will win market share.

In addition, Langan believes the automaker is getting out from under – with bondholders receiving 75% of their GM shares and warrants on April 21 — implying most of the warrant overhang is being addressed.

What’s the trade?

Joe Terranova is bullish. "I’m a buyer against $29," he says, the level at which the stock has bounced. Also he suggests a long position in Precision Castparts, even though the stock is currently trading near its 52-week high. "I think it’s a classic example of buy high and sell higher," he says.

Patty Edwards is also constructive in this space but she prefers long PACCAR .

Steve Cortes is on the other side. "We still have massive over capacity in the auto industry," he says. "I’m shortFord . As long as the stock stays below $16 I think it’s heading lower." And Cortes is also shortAmerican Axle, as a related trade.


* Check out our entire conversation with Langan. Watch the video now!




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Trader disclosure: On May 4, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman owns (C); Finreman and Finerman's firm own (CVS); Finerman's firm owns (IBM); Finerman's firm owns (JPM) and is long (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm own (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's firm is short (IWM), (SPY), (MDY); Finerman's firm owns s&p puts; Finerman's firm owns Russel 200 puts; Terranova owns (XOM); Terranova owns (BAX); Terranova owns (SLV); Terranova owns (TCK); Terranova owns (APA); Terranova owns (HOC); Terranova owns (OXY); Terranova owns (UPL); Terranova owns (FCX); Terranova owns (BX); Terranova owns (V); Terranova owns (VRTS); Terranova owns (JPM); Terranova is short (NFLX); Terranova is short S&P Futures; Terranova is Chief Market Strategist of Virtus Investment Partners, LTD; Karabell owns (AAPL); Karabell owns (EMC); Karabell owns (GS); Karabell owns (IBM); Karabell owns (GOOG); Karabell owns (GE); Karabell owns (POT)

For Brian Kelly
Accounts Managed by Brian Kelly Capital own (EBAY)
Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (DIA)
Accounts Managed by Brian Kelly Capital are long gold, natural gas

For Zachary Karabell
River Twice Capital owns (EMC), (GS), (IBM), (JCI), (SBUX), (POT), (QCOM)
River Twice Capital is short (AA) calls in fund
River Twice Capital is short (XLF), (SPY), (SMH)

For Joe Terranova
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK &
URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Peter Shiff
Schiff Owns Gold
Schiff Owns Silver

For Colin Langan
(GM) Is Or In Past 12 Months Has Been An Investment Banking Client Of UBS Securities LLC
(GM) Is Or In Past 12 Months Has Been A Non-Investment Banking Client Of UBS Securities LLC (Securities-Related Services, Non-Securities Services)
UBS Securities LLC Has Received Compensation From (GM) In Past 12 Months

For John Stephenson
**No Disclosures

For Whitney Tilson
Funds Managed by Whitney Tilson are Short St. Joe (JOE)
Funds Managed by Whitney Tilson own Berkshire Hathaway Shares
Funds Managed by Whitney Tilson are long Howard Hughes Corporation (HHC)


CNBC.com with wires.

Symbol
Price
 
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AXL
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F
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GM
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PCAR
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