So I kept hearing how GE stock was going down last week because the Dow was going down. But today it went the complete opposite direction (down again when the Dow went up). Analysts downgraded it again. How low will it go? Anyone think $7?
18 replies (most recent on top)
If GE hits $9/share, I’m back in.
Bankers are in charge. (Use term loosely) Leadership’s goal when they come to work everyday is to figure out how to get the most money into their pockets. Deals, rigs, sell assists, whatever. They don’t care about making parts. The days of liking to make engines, turbines, trains long gone. A lot of companies are this way now. Tesla, now there is a young company where the leader loves to make things. Not trying not to plug them as great, just an example to show difference.
The first thing GE needs to do is tell wall street to go F themselves and run a damn set of industrial companies they way they should be run. Get rid of stock options all together for its leadership and go to a cash payment bonus structure based upon real sales goals. Stop selling divisions to make up for shortfalls and reduce taxes. The leadership at GE is way overpaid for what they are doing..which is really nothing. You can put a monkey in charge and they would do better. The board needs to fire the current leadership staff go outside and get some people from decent experience from competitors ..trim the salaries of executives. But instead, GE promotes internal leaders because they believe the company is too complex. It is not complex anymore, you got rid of GE capital almost totally. All you have now is pension debt an industrial companies to run. There really is not magic carpet to roll out. It is simple, pay for performance. You don't make your number (JF) you are gone ! So far not so good. I give you one year and people will be screaming we got another (JI) at the helm. The scheme to sell off transportation and borrow money to sure up the pension hole anyone at GE could have come up with..
The stock price is not completely affected by the current business operations at GE. Wall Street is full of opinionated blow hards that look at spreadsheets, rely on algorithms, and will hook onto any new item that they can use to attempt to be relevant in the eyes of their customers. Look at the 2007-2008 Financial Crisis, these "Fine" establishments were bankrupted, bought by others, or otherwise changed forever, when using their "approach" to managing money: JPMorgan Chase, Citigroup, Bear Stearns, Goldman Sachs, Lehman Brothers, Bank of America, Wachovia, Merrill Lynch ...
Just saying, the way of doing business has changed over the years, and not for the better. If Thomas Edison were to want to start a company in this day and age, he would probably rethink his desire.
folks the problem is the a$$ clowns that run this company. Everyone of these jokers have been in the hen house for years and know all about GE's problems they are part of the problem. If you work for Power, do you really believe Stokes is the right person to run the largest business unit of GE ? Investors want to know the company has the right people in the right positions. Harry Potter (JF) is another problem he put Stokes in this roll. Be rest assured stock owners; the GE leaders will measure the X's and predict the Y's. Let's face it any company is made of people that work there and they do not want to work for the people running it. There needs to be a major culture change at GE and it has NOT occurred. You can change out the emperor out all you want and his minions but you need to lead by example not stuff stock options in your pocket every year.
You think GE stick is dropping now? Wait until the CPI report comes out...
The pension obligation has already been factored into the share price. Does anyone here actually think wall street doesn't know how to calculate a pension obligation and its effect on a share price?
I know you dingalings think everything is about the CEO and the pensions. It's not. The problem is sales of repair parts and how future expected sales of repair parts had been factored into expected revenues.
The last thing the wizards of WS will do is announce when they are buying or selling. No buy recommendation at or near a bottom. They want you, the public, to be panicked sellers to keep that low price low while (if) they are buying. They have a lot more money than all us put together so price will start up. Once they have accumulated their shares, then the buy recomendations start. When they feel like they got all they can, the pump and dump starts, raising targets while selling. However, very unlikely they will buy into a company with a cash problem. Lack of cash means lack of dividends and buybacks, inability to pay creditors. They are waiting to see if any help coming, and the public will be last to know.
Easy to see why this company is the worst performing stock and in a downward spiral. No point saying it wants to sell some of its business if potential new owners have to take on a pension mess and runaway debt. Any buyers would run a mile to get away. Bunch of losers.
well you are spot on about GE not being serious about funding the pensions. The name of the game is to put the minimal amount in needed to keep the analysts happy...boost the stock price and hope the problem gets swept under the table. Problem is they cannot sell any business for a decent amount without funding it pension obligation for that business. I don't see this problem going away. The scab is pretty big and lots of folks like to throw this tidbit into the mix when the stock price and earnings are for sheet...but as most crooks in the securities business like to do...pump it and dump it. The stock has not reached the "pump it" level yet. So, it will continue to drop in price until it reaches the magic recommended buy price. Ain't there yet gents !
Is anyone seriously expecting GE to shore up the pensions. That's naive. Pensions don't exist. No money there
@RIhnPjm-xpy, you nailed it! JF doesn't have what it takes. In fact, JF is part of the problem being promoted through GE's failed culture.
They need to sell an asset (maybe baker hughes) and use the sale to fund up the pension deficit. Stop dithering and make some hard decisions to get this mess back on track.
Need a new CEO from out side. JF simply does not have it.
You know GE leadership has pretty much played all the cards they can. I predict they will need to cut spending more in every division and maybe stop paying a dividend until this pension obligation is put in check. You can thank Jeff for his piss pour management and greed. Look for the stock price to continue to tumble. They simply cannot pay for their overhead. There is not one analyst that believes GE leadership at this point. If I were Flannery, I am not sure I would have taken this job. He simply cannot right this ship without cratering the stock price. I see more transparency in GE leadership until they final scrap the bone and admit prior leadership was cooking the books. When GE starts paying tax like other companies one will really know they are for real. GE has done nothing but manipulate their books to pay zero tax for years. Well it finally caught up with them..there is no more GE capital to hide their secrets!
I hope it goes to zero!! Screw GE.
I would think $10-12 would be a number that makes sense if they address the pension hole. They can sell off business’s but they still have to shore up the pension for business they sell or take next to nothing for the entity up for sale. After they miss the first quarter earnings watch for another drop.
Forbes has an $11 Price Target. Market Cap would be about $95.4B with Pension Hole of $31B.
Price Target
https://www.forbes.com/sites/petercohan/2018/01/18/with-a-breakup-value-of-11-is-it-time-to-sell-ge/#360052356a1e
Pension
https://www.bloomberg.com/news/articles/2018-02-07/as-ge-breakup-talk-heats-up-a-31-billion-problem-is-overlooked