Anybody else wondering what this is all about? Maybe now that they have ruined the company enough to get the shares dirt cheap, they'll actually try to turn it around so they can sell them higher?
https://www.marketwatch.com/story/ge-director-james-tisch-discloses-54-million-stock-purchase-2017-11-24
This place is going down the toilet no doubt about it. Bad management and bad decisions ruined it.
The analysts say GE stock will probably drop another 30% in the next year, and many believe the parts are only worth 11 to 14 a share if broken up.
Many also believe that Nelson Peltz will force a breakup to get his cash out.
True, GE executives have big egos and believe they can fix GE and that it is just the power generation market. I am afraid that if they really believe this, and don't restore GE Power to an excellent engineering, manufacturing, and supplier of turbines like it used to be, a breakup is probable. Unfortunately, they do not have all the other businesses they sold low in desperation to hide poor organic cash flow to contribute to cash flow going forward.
The management structure is so bloated with no nothing managers brought in since 1998 under the Six Sigma regime that they really don't have any experts left who know the business from the bottom up. Duplicate facilities and bloated management has to be replaced by experts who know what the hell is going on, instead of the fakers they have now. This could take 3 to 5 years, but Wall Street and investors will only give them less than two.
Even f they have three years, this may be very difficult to recreate, which is the key to GE success at the day to day execution level.
Agree. They have to buy stock...obligated ...otherwise, they would not buy. This is true. GE is still likely headed down and they will lose value in their investments, like Flannery already did.
The ceo and board members are obligated by contract to buy stocks. The amount of stock purchases has to equal a certain percentage of their compensation.
My guess : they were all “encouraged” to buy stock as a show of confidence. Flannery set the tone, others are following.
This confirms these board members have big egos: confidence that the "changes" they're making are sure for success. It doesn't mean they have some insider knowledge that the business will do much better soon. In fact, I think it means the opposite. It's the same over-confidence that got GE into this position. Only actual good business decisions will make GE succeed, not showing confidence by multi-million dollar stock buys.
Buy low sell high, that is the mantra and that is what going on. Unfortunately, not every one has that kind of bread to invest.