It seems that GE can’t catch a break even in these dark times. This article summarizes all adverse events that hit GE recently. The only good thing that I can extract from all of this is that it seems to me that the leadership is a bit closer to diagnosing the exact problems. Will they be able to fix them, time will tell.
https://seekingalpha.com/article/4216899-general-electric-nightmare
The CNBC half time show the other day mentioned they thought the stock was a short and would hit the $7 range and is not worth buying until it hits $5.
Starbucks Market Capitalization is more than GE’s.
Apple has nearly 3X more cash than GE’s Market Cap.
If the stock drops to $5, GE would be the same size as 7/11 Convience Stores, EA Video Games or EBay.
Obama saved GE last time. Remember his tour of Schenectady?!?! GE pushed hard for Obama and he paid GE back nicely. Well all of the payback and tax brakes have been used up and there's nothing left. I seriously doubt Trump will lift a finger to help GE. The old GE made our bed, now we get to lie in it!!
Sears took a long time to go bankrupt because they had lots of stores / property they were selling. When it ran out, bankrupt. GE is close. Question is where will they get cash? Increased sales, selling assets - what can be sold? Maybe Trump. I think GE will be begging with Gov soon if they aren't already.
Culp needs to clean house. All remnants of 2 Jet Jeff leadership team need to go. All are proponents of marketing over execution culture. Corporate still spending $44B doing nada
In 2009, that was after the big market downturn and financial crisis. We are currently just before those recurring events. I don't see GE as it is today surviving that environment again.
@1olh....Thanks Steve.
Don't forget the stock was like six dollars and change in 2009. There is a long way to go for this once Giant company, but it's going to be the little people that pay the most. I wish you all the best, as this will effect so many in so many ways
For you brave shareholders out there holding on to this stock looking for the turnaround, something wicked this way comes. . . .
Stock is closing in on an $8 handle. This is bad. Very Bad.
I, too, sold the stock when it was near its peak at $32. Now I hear co-workers who had everything invested in it, wailing and gnashing their teeth because they have lost two-thirds of their 401K. Someone with $300,000 in it is down to $100,000. I wonder how many across GE are working for free this year? And next? Sad.
Personally, I think GE should be split up entirely! All divisions should be put up for sale. Even with how bad the business's are (less, perhaps, Aviation), there are many buyers for this complete and utter quagmire.
Aviation: United Technologies (Pratt Whitney), Rolls Royce,
Power: Siemens, ABB, Hitachi, Samsung.
Healthcare: Siemens, Phillips, Hitachi, etc.
Just to name a few....Sell the companies so they can properly manage them, and bring them back to solvency. Not sure how your shares would be viewed and distributed, but "anything" is better than the current situation.
Every day, I wake up and thank myself for the courage to sell my GE Stock in the S&SP at $30 despite most everyone else thinking it would keep going up. Continue to feel bad for those whose retirement accounts have been devastated by 2 Jet Jeff and the rest of the leaders.
The key decision point for me was to compare the overall corporate debt to cash flows and then understand the impact of cash flows of the loss of the short cycle industrial and capital businesses that GE was preparing to sell along with adding in long cycle businesses.
The most important equation in the entire problem is that 2 Jet Jeff increased the corporate debt from less than $2B to over $82B while selling off short cycle positive cash flow businesses which even though they had lower margins provided massive life bloods of support on the cash flow cycle while adding negative cash flow businesses with mythical margins like Alstom. Additionally, the move into Digital was a massive overspending boondoggle of waste with salaries between $200-500K for silicon valley people who did not get the mentality of the rest of the business.
I am hoping the business and our pensions can be saved but there will be many more challenging decisions that Culp will need to make.
@1slc to be fair, this has been going on for the past 18 years, so it could be much closer than anyone thinks.....
@eaa, take a Valium, still 11 more notches for GE to be downgraded to reach Sears' level. It took Sears almost 15 years after its disastrous merger with Kmart in 2004 to declare bankruptcy. It may happen for GE somewhere down the road, but the Sears Way ain't gonna happen in Q1, 2019. Lots of layoffs, spinoffs, and divestitures have to happen first.
It seems to me that Culp is very adept at learning new languages, look how quickly he picked up on "GE speak". This earnings call was just more of the fumbling, bumbling and stumbling that we've seen in the past. Look at Beth Comstock, she's still doing it even after leaving GE!!!
Looks like GE would need to declare bankruptcy by Q1, 2019. GE going the Sears Way...
It will be the SEC and DOJ that "diagnose" all of GE's problems. Hopefully the outcome includes Immelt, Flannery, Welch, their BOD's and C-suites having a new orange wardrobe and a room with bars on the windows.
If GE couldn't stop the stock from free falling during a very robust bull market, how are they going to get it to rise to any significance during this bear market happening now? Very tough challenges ahead...for all of us here at GE I'm afraid. You know what rolls downhill. The previous upper management has gotten their booty and got out. We are about to get ours now. Up our booty.
It ends at 0. The Ponzi scheme will be shown.
Wait until it hits $5. Maybe venture capitalists will step in and do what really needs to be done
More layoffs in the near future. I’m glad to see the stocks drop even after all these good people lost their jobs and livelihood. Great company with great leadership. NOT
Agreed, I wouldn’t be surprised if it falls into the low 8 dollar range at this point, we probably have more divedend investors to sell as well stock loss write offs by the end of the year.
I remember when it was so high that it split and kept going, Those were the good old days. Luckily I got out of it a long time ago and got mine!
Seriously this is unreal, I’ve never seen anything like this plunge, I thought it would stabilize at $10 and change
Stock closed at $9.58 today. Where does this end?