Is GM Glass Half Full or Half Empty?

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Whenever a stock goes up and wall street cheers an earnings report that raises a basket full of questions it has to make you wonder.

The latest example is the 2Q earningsfrom General Motors.

While earnings plunged 41% compared to 2Q of last year, the profit of 90 cents a share easily beat the street. More importantly, GM's losses in Europe ($361 million) was less than the $440 loss forecasted by analysts.

That lower than expected loss is a primary reason some analysts are reiterating buy ratings on GM shares that have been pummeled in the last three months.

So is the glass half full for GM? Or is it half empty?

The skeptics will point out that GM can't predict when losses in Europe will slow down.

Furthermore, when you look at GM in North America, its retail share is down EVEN as the amount of money being spent on incentives is rising. Also troubling is the decline in revenue per vehicles sold in North America in the second quarter. It was $29,500 in 2Q of '11 and dropped to $27,927 last quarter of this year.

Why are some on Wall Street optimistic about where GM is headed in the U.S.?

Primarily, they're upbeat on GM growing profits as a wave of new models start hitting showrooms starting late this year/early next year. If U.S. auto sales pick up in 2013 (as many expect), GM expects new models like the Cadillac ATS to improve their profitability per vehicle.

So how do you view GM? Glass half full or half empty? Leave your comments here.

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