Stephen Tusa for CEO.
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There is no good news on GE now. But the stock will move first, you scratch your head, then after the move you get the news. Buy rumor, sell news. WS stays ahead of news, or they get the news first. Right now this is price gyrations and bounces are expected after moves down.
Tusa did not upgrade his price range. The rest is fake news. There's nothing to celebrate here.
Few things are more productive than arguing over semantics.
If saying that GE has reached the bottom of a previous downgrade because the stock price is as low as it will get, let's celebrate the upgrade...
upgraded to neutral from underweight
Bargain hunters eyeing General Electric ’s depressed shares should hear the bear case before buying. That is told, convincingly, by JPMorgan analyst Stephen Tusa, who put an Underweight rating on the stock in May 2016 at $30 and maintains one today with the shares at $20.
Tusa and his team recently ranked No. 1 in Institutional Investor’s survey for their coverage in the electrical-equipment and multi-industry category. With GE (ticker: GE) quickly approaching a key investor presentation on Nov. 13—the first for new Chief Executive John Flannery—Barron’s caught up with Tusa to get his thoughts on the turnaround effort, the 4.8% dividend yield, and what investors should buy instead in the industrial sector.
Tusa: I believe they’re going to cut the dividend. Timing is always tough to call on these things. But if I were the new CEO—who, by the way, I think is doing and saying the right things so far—I would not want to step on that stage on Nov. 13 and have the focus be entirely on something like this, which is so binary. Better to get it out before the meeting so you can talk about other things that need more color, like long-term strategy, cost reductions, and capital deployment.
No dummy, it was an upgrade from “Sell” to “hold”. Try to keep up.
GE didn't get an "upgrade". GE's price fell below $7 and right in the middle of his price range dummy.
It is unbelievable, one analyst can cause so much churning of GE stock. Guess who makes the money playing the market.
GE has been trading more on psychology than math. For years now any time GE has come out with good news, Tusa has put out a negative piece shortly thereafter. What his upgrade does really, is allow good news to be good news. The psychology has changed today.
Just manipulation. They are trying to make $ off unknowing public. Agree, GE is all about trying to raise cash now and pay debt. It is not a turn around story.
Tusa reached his annual short profit goal.
He changed from sell to Neutral based on the stock price and his view of risk/reward. Nothing has fundamentally changed in the story.
The insiders know that they have to give Culp breathing room to do an equity raise as well as sell additional assets. He still has a $6 price target with a range of $5 to $8 per share.
The entire game is going to be the debt that is due in 2019 and 2020. There is a net $100B of liabilities.
They are going to have to issue more equity as the Tier 1 businesses are broken out as their own public companies which will dilute the GE stock price as GE needs to issue stock equity to then have enough funds to cover the $100B of net liabilities as the sale of businesses will not be enough to cover the debt payments.
Tusa is playing the market. There is absolutely NO way GE deserves an upgrade at this time. There have been no fundamental changes in the business structure or its financial situation. I smell some insider sh!t going down.