It seems that Forbes thinks GE is ready to break out and start recovering. Anybody here actually agrees with him?
GE’s ugly 50+% downtrend has ended, and the stock has built a foundation from which to launch an uptrend. What foundation? It’s there, but not at first glance.
https://www.forbes.com/sites/johntobey/2018/03/08/ge-looks-ready-to-break-out/#51aa34f63c63
I am hearing daily that GE is a buy here at these lows. Based upon what ..just because the stock is low ? Where are the fundamentals that this company is being run differently? Just because you change out the figure head and replace him with another corporate insider does not mean crap. Let's see if they hit their numbers for Qtr 1 and 2 without selling off two or three pieces of their business. If you earnering for the qrt match your dividend payout ..then something is stinks in uncle johnny's pants. Hey, let's award stock options to leadership for these brilliant management decisions.
@S6N1XYG The Forbes author is making that call based on the stock chart pattern, which suggests buyers show up when the stock dips to $14 which it has done so 4 times. This is an indirect measure of investor thinking about GE so some population of buyers think this is or very near the bottom. Problem will be if there are more surprises, SEC findings, additional write downs, further dividend cuts, Pension funding plan;a lot of variables. Though he may be right, with as many shareholder holding paper losses at higher prices, they will sell when the stock gets near to their buy price making the recovery to $30 take a long time. Better opportunities elsewhere in the market.
My opinion is to wait. For two reasons. First, at best the stock will remain at or near the $14 - $15 range for at least two years and the dividend will not increase. You would make little or nothing. There are better options out there. Secondly, the Dow has not corrected itself as of yet. When it does, most stocks including GE, will drop further. Then it might be something to look at.
Stock is only worth $11 or less. Once it is fairly valued and begins to put in a base I might decide to buy. I got out of it at $32. The turnaround and headwinds will take longer to sort out than most might think.
MAKE GE GREAT AGAIN!!
haha just kidding, as long as CAS is the leadership pipeline that will never happen.
GE as a whole will recover when GE Power declines to the point that it is merged with GE Aircraft and the executive level GE Power management is retired. Right now GE Power is too much of a drag on the business and there is no ability for HQ to see inside that business. GE Power management is sticking together. It will be one quarter after another of "surprises" until there is no business left to surprise.
I will believe it when Buffett stops selling GE stock and starts buying GE stock.
Its a death spiral. There is no strategy except selling assets to make debt payments. There is no money for investment yet there is a huge need for it. There is not enough decent talent left and the talent there is has no decision making authority. Decisions are made by the same leadership program class that ran the ship into the ground. Factor in finance is filled with ex-CAS who are trained to game metrics. Do you think they turn into angels when they do financial reporting. I wouldn't bet on it and consequently I don't believe the financials. The SEC don't seem to believe them either which explains why they are investigating. Finally consider that this is a boom period, what do you think will happen once the inevitable recession arrives. Aviation, their last lifeline will tank. It will recover once the boom returns but by then GE will have sold the farm to pay its debts. My view is avoid and even the most optimistic outlook would be watch and see. If you really feel strongly about a GE business then wait for it to be sold and buy the stock of the purchaser who will invest in bringing out the value.
Sorry but until GE starts retaining individuals that care about coming to work and want to make GE great again..this company is going nowhere! Take it from someone who used to work there. The company has some of the worse benefits I have seen as compared to it's peers. So, why would anyone want to work for them? Even the executives are getting the shaft now, no more car perks. Did the country club membership go as well? That was always covered at a VP level and above.
You cannot run a company with a bunch CAS and audit team members. Yes, they know the hinden little secrets of each business and can make a quick buck or a slight change when put in charge. Fundamentally, GE needs to service its customers, provide innovative products and have resources that know what they are doing. As for rebounding, enter at your own risk , I got other places to put my money. Until I see some qtr over qtr improvement, this stock major avoid or sell. You watch first qrt will be more smoke and mirrors and they will mention they are close to selling transportation or Power Recip business which should generate some positive cash flow for later in the year but there will be restructuring charges ...same ole BS.
I believe GE will rebound over the next 3-5 years. Most of value in past has come from innovation, quality and sound manufacturing/engineering. GE lost it way when they started putting all the finance guys in charge of the industrial's. Also we had many greedy leaders at the top most levels that went unchecked for many years. Only thing that can stop them is if they don't continue reducing the management layer, stop much of the horizontal nonsense and reduce GE Digital money pit.