Big layoffs coming to GE Power first befthey cut the dividends. Nemesis Prime was right again. I predict December layoffs for blue collar workers in Power.
17 replies (most recent on top)
He did not cut it, but set the table for a future cut. What a big miss on earnings...this situation is, unbelievably, worse than anyone knew (outside JI and cronies). We had an incompetent leading us off a cliff and the BOD did nothing.
Yes, they can do all that. But they cannot change your accrued benefit. Only a bankruptcy judge can do that.
Re: legally reduce pension .. straight from the pension site .....
The Company reserves the right to terminate, amend, eliminate or replace the GE pension benefit program at its discretion and at any time. This is not a guarantee of the total monthly retirement income stated.
so yeah, we are F ' D
Dividend decision "deferred" according to the report....GE stock down 5% before trading
No matter what happens tomorrow,expect a jump in the share price- all negatives have been priced in and then some more
Analysts think so. But what do they know? They don't work for the company most have never done real work in their lives. My belief Flannery won't cut the dividend. First reason he wants to break with the past especially immelt. Secondly he has to increase the value of the share he can't do that by cutting the dividend. Trian want there $2 a share by 2018.
If he cuts the dividend look for a massive sell off. There are plenty of folks that are holding this piece of sh-- stock for the dividend. Frankly, this is one of last bullets in the chamber. GE has floated this BS out to let the world know it is a possibility there is cut in future. Screw that ..I say; cut this place to the bone and preserve the only remaining reason people want to own the stock. THE DIVIDEND !
GE's dividend will be cut to a yield of 3% based 24.00 per share or 72 cents a share. Don't count on hearing much about layoffs. Just exec speak for synergies and cost outs. Layoffs to come on a regular basis until goals are reached for cost outs at end of 2018. Stock price may drop a little but most of price drop has already been priced in over last few weeks.
Good strategy would to buy GE if it drops after earnings call. It will go up after John's speech in November. Sell at if it gets near $30 or else look to hold for 3 years when it should be around $34.
I don't think GE can, legally, reduce your accrued pension benefit, but they can change the plan going forward. They could also freeze the plan, meaning no further accrual beyond what you have now. This is what GM did when I worked there, and many of the older folks headed for the exits.
They will cut the dividend, they will screw the employees by increasing healthcare contributions, reducing / eliminating bonuses to those below Executive Band, postpone raises and potentially reduce the match to the savings plan. Anything else ... they'll screw those who are not of retirement age and reduce their pension benefit as it is underfunded by billions, largely due to the fact that pension fund is invested in, you guessed it ... GE. Great management.
GO GE SAVE EVRY CENT AND $ which is good for shareholders in future
At least 50% cut in the dividend tomorrow. Otherwise they aren't serious about the cash problem.
Long term gains is better than short term loss
Share will go down if that happens
Conserve cash?
if they do, expect another 10% decline as the income funds divest