Billionaire George Soros’s Cheap Stock Picks Include General Motors Company (GM)

According to the 13F, Soros had 1.5 million shares of General Motors Company (NYSE:GM) in his portfolio at the end of the first quarter of 2013. General Motors Company (NYSE:GM) didn’t do that great last quarter, as its earnings dropped by 11% compared to Q1 2012 as growth in the U.S. was offset by poor numbers in other markets. The automaker is an analyst darling, with bullish expectations from the sell-side implying a forward P/E of only 8 and a five-year PEG ratio well below 1. In addition, General Motors Company (NYSE:GM) was one of the five most popular stocks among hedge funds last quarter (check out the full top ten list).

Rounding out our list of Soros’s cheap stock picks is $1 billion market cap semiconductor designer Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD). The company’s products are used as wireless communications products, including in smartphones. At 12 times trailing earnings, the market appears to have low expectations for Spreadtrum. Analysts are looking for very high growth, however, and as a result the stock’s five-year PEG ratio is quite low. While revenue growth rates are in the double digits, Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD) does not seem to have been successful in holding costs down going by recent reports.

Still, we think that the company is worth a look even if we don’t fully trust analyst forecasts here. Macy’s also seems to be holding up well in the face of Internet and big-box competition, and its valuation makes it look interesting as well. We’ve mentioned that Mosaic and US Airways derive their low multiples in part from their industry, meaning that we’re not sure they’re any more appealing than their peers, and we’d lump General Motors Company (NYSE:GM) into that category as well.

Disclosure: I own no shares of any stocks mentioned in this article.