Instead of playing games with a reverse stock split to get the price on par with other comparable industrials they should be concentrating on what it takes to drive market cap to be comparable / exceed other industrials.
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There are a few goals I think at works:
1) Reduces dividend payout by 87.5% equal to $3.765 billion in cuts per year. Big impact to GE retirees with stock dividend payments.
2) Reduces risk of stock getting removed from indexes, mutual funds and pensions if it drops again as many have minimum dollar amounts
3) Makes financial metrics that are based on count of shares look better.
A previous employer did a 4 to 1 reverse split. Within a few months of the reverse split, the share price was lower than it was before the split. So, wouldn't surprise me if the same thing happens here.
It will raise the price of the stock so when the Stock Market correction, or possibly a crash, arrives in the future, it won't look as bad.
Watch the stock price drop to less than 2x the pre reverse split price, after the reverse split. These market psyops don't always work out the way they teach in business school. Expect GE to find a way to f— it all up.
I guess that's one way to get the stock price up so you meet your bonus target.
Talk about Id**ts? The stock price goes up x8 and your number of shares goes down by x8. Inflated value is for big investors not wanting to buy excessive number of shares. This also reduces the chance of GE being de-listed on NYSE if value drops too far.
What a bunch of id–ts!!! Stock price always goes down when there is a reverse split. No brainer.
They already done the reverse split with the local union as for the pay, pension. Yes more games will soon be revealed.
Reverse split? sell off power that is why the stocks are way down!