Thread regarding General Electric Co. layoffs

Everybody is showing uncertainty about the Baker Hughes sale

I see a lot of different opinions about the announced sale of the company’s stake in Baker Hughes these days, but as time goes on more and more skepticism comes to the surface. Shareholders are apparently very uncomfortable with this decision, the media and the analysts are far from optimistic, and the workers look somewhat confused. I believe we all want to hear that the leadership has some brilliant plan to keep GE afloat and that they are confident in their decisions, but as time passes, it’s becoming more and more clear that the only criteria behind this decision were getting fast money, without considering the long-term implications.

https://seekingalpha.com/article/4222990-ge-baker-hughes-deal-forced-sale

by Anonymous
| 2051 views | | 5 replies (last November 19, 2018) | Reply
Post ID: @OP+WbLZvWu
Comment! It's anonymous!

5 replies (most recent on top)

Selling assets produces quick cash. The downside is that you give up future profits. The need to reduce massive debt means that quick cash takes precedence over future profits. Asset sales usually produce a short term jump in the stock price as well. Which gives the big investors an opportunity to recover some of their losses.

by Anonymous
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Post ID: @2znw+WbLZvWu

@2wkh the same thing also happened work GE Plastics. That business was a consistent money maker that was sold and justified at the time because it didn't have high enough profit. At least it always made a profit, unlike Power now.

by Sherlock
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Post ID: @2wto+WbLZvWu

The Baker Hughes sale? I don't know......

by Anonymous
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Post ID: @2quc+WbLZvWu

It’s been that way for a while though. Full disclosure; I exited with the Digital VJRP last year.

But consider, after we got SIFI, we sold a lot of Capital in the worst market to sell financial businesses. Look at Synchrony. They are killing it right now and GE could still be benefiting. We sold Appliances in the bottom of the residential construction downturn (09 I think?) and only got saved with Electrolux or whoever it was having to pay us like half a billion dollars... and then we sold it for a billion more.

The problem was, we kept selling sh-- at a discount and that propped up revenue. What happens when you run out of sh-- to sell at a discount? This happens.

by Anonymous
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Post ID: @2wkh+WbLZvWu

New CEO trying to save the company. GE is broke and needs cash, it’s pretty simple really.

by Anonymous
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Post ID: @dzb+WbLZvWu

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