A few short weeks ago, Flannery warned investors who bet against the company's resolve " to do so at their own peril"!!! Are you serious John? The only peril now is in keeping you as CEO and COB!
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He is a liberal arts major trying to lead a finical / science and technology company. What can go wrong?
Carlos Ghosn. He would terminate GE b---s--- at all levels in a snap of his fingers. Everything would be again balanced, as it should be.
Who would you replace him with and what skills do they have to turn around the company?
The most accurate stock market analyst who is covering GE is J.P. Morgan’s Stephen Tusa Jr. He has been predicting the stock would drop to $11 per share on the basis not only of Power, Oil and Gas and Capital’s profitability struggles but Moreno importantly on the basis of cash inflows and outflows.
There are currently significant cash outflow risks such as Capital’s legacy businesses of long term care and mortgages as well as Pension, Tax, Negative FX, SEC Investgation Penalties, Alstom Biz Ownership Buy of Remaining Parts, Higher Borrowing Cost with Interest Rate Increases and Decreases in GE’s Creditworthiness.
A basic review of cash flows and details that are public easily shows that it will take 6 years to fix this mess at the current dividend rate or John can cut it in half again and solve in about 3 years provided all negatives are baked in which is a “Big IF” since Power and other Biz units continue to be in free fall.
Thus, it is highly likely his only play is to sell off more assets, move GGO/ Corp to each Tier 1 P&L, Turn Each Tier 1 Into it’s own public company, Sell more parts of Capital like GECAS and Energy Finance to have enough cash to give to whoever is stupid enough to buy the long term care insurance biz, conduct a structured bankruptcy of the mortgage unit and pay an SEC Fine, eliminate future Pension accurals for active employees and turn the remaining parts of GE HQ/ GE partent Stock Into a holding company of bad assets (Pension/ Capital etc.) and Hope the sales of equity in each Tier 1 biz once new public companies are created for each is enough equity value to offset all of the failed businesses/ employee entitlements like the pension. If not then the only choice is to sell premium assets for cash.
Amen
He will quit after the dividend goes to 0. GE firesale won't end anytime soon.