Volt Birth Watch 182: Whitacre Projects Volt Profit At “Low $30k” Price Point

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We trust that the preceding report has been instrumental in your analysis of the bottom-line performance of Volt Information Sciences Inc. It’s important to remember that profit, while significant, is just one factor when considering an investment in a company. Equally crucial is assessing whether the stock’s price is reasonable relative to the company’s profit. In this regard, financial ratios like PE (Price-to-Earnings) and PEG (Price/Earnings-to-Growth) can be valuable tools for analysis. Because it sure seems that GM plans on selling the Volt for $39,500-$45,500, and that the “low 30s” number is dependent on a tax credit. As for Whitacre’s claim that the Volt will make profit, the lack of time-constraints on his prediction is all you need to know.

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On a positive note, the magazine said GM’s plug-in hybrid powertrain makes more sense in a luxury coupe than a five-door hatchback like the Volt. In its first assessment of the car, magazine’s testers wrote that they suffered from sticker shock. Consumer Reports praised the ELR’s styling and quiet cabin, but said the car was “priced out of its league.” After a few minutes of careful consideration, she pulls the trigger, and Volt dies. Well they can’t really “get away” seeing as they are escorting him, so I guess backing into another dimension for a few minutes will have to do. Order books have been open since July, and Toyota expects to deliver the first cars to California customers this month.

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