NFT: GE stock ... ?

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For advice on GE stock, you should probably just no do anything.

Unusually large trades in General Electric Co. continue to hit the tape as the stock plunges further, suggesting one or more major shareholders are trying to sell as fast as possible.

Of the 12 largest blocks in S&P 500 Index companies today, nine of them were attributed to GE (when stripping out the market-on-open auctions). Collectively, these trades come out to around 24.3 million shares and equate to a total market value of around $196 million.

Lost $31B in the last 12 months, almost $100B in debt, dividend down to $.01/share and no prospect of raising the dividend. They'll have to sell valuable assets to pay down debt, putting even more pressure on earnings.

Don't be distracted by the brand name. This is junk and getting worse.

Bought some about 2 months ago (and watched it go down).. I thought about buying more but, what is that saying about throwing good money after bad?

I still do not think they will go out of business.

I thought I read somewhere today that they repurchase over 2 billion worth of stock (which is usually seen as good news) but, it did not have the outcome they hoped for. : )

Culp insists the stock is "on sale".

We will see.

Kodak

Buying a time machine

In comment 14174729 spike said:

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Buying a time machine

Ticker name ...?

In comment 14174578 Ben in Tampa said:

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Kodak

Remember when Apple was $5.00 a share in the nineties ....

GE is a Steve Jobs away from $100.00 share.

Is like Sears. They need to sell assets to try and survive. There are better fish (stocks) to pick from out there.

is selling off assets like mad. The have a lot of long term pension obligations, and debt from GE Capital. Their power business is also struggling, although their aviation division is strong. 2019 will be very rough for GE IMO. It has probably been one of the worst managed companies during the last 25 years. They are like the Giants. Two years away at least from being competitive, but they do have a few worthwhile pieces.

In comment 14175086 AcidTest said:

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is selling off assets like mad. The have a lot of long term pension obligations, and debt from GE Capital. Their power business is also struggling, although their aviation division is strong. 2019 will be very rough for GE IMO. It has probably been one of the worst managed companies during the last 25 years. They are like the Giants. Two years away at least from being competitive, but they do have a few worthwhile pieces.

Am I the only guy who hated Immelt and wondered how he stayed in charge for so long?

In comment 14175086 AcidTest said:

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is selling off assets like mad. The have a lot of long term pension obligations, and debt from GE Capital. Their power business is also struggling, although their aviation division is strong. 2019 will be very rough for GE IMO. It has probably been one of the worst managed companies during the last 25 years. They are like the Giants. Two years away at least from being competitive, but they do have a few worthwhile pieces.

No doubt Acid ... I think the next 3 years are going to be rough seas.

Does anybody know if Buffet is still in the company? He probably had 1 of those deals that no other shareholder would ever get ... but, I am wondering if he took his money out.

dumped it all .. he could have called.


Link - ( New Window )

fired Flannery pretty quickly, and of course cut the dividend to .01 per share, which will save about $3.8 billion. GE is not Kodak, but they will be a lot smaller IMO by 2020. If the rest of your portfolio is stable, your exposure is small, and you have time, then GE might be worthwhile. But you have to be patient.

Many of the bank stocks lwere hammered during the recession. Bank of America was less than $5 a share IIRC, and also cut its dividend to .01 per share. It was also very badly managed. It is now about $27 IIRC, and has increased its dividend several times.

In comment 14175261 AcidTest said:

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fired Flannery pretty quickly, and of course cut the dividend to .01 per share, which will save about $3.8 billion. GE is not Kodak, but they will be a lot smaller IMO by 2020. If the rest of your portfolio is stable, your exposure is small, and you have time, then GE might be worthwhile. But you have to be patient. Many of the bank stocks lwere hammered during the recession. Bank of America was less than $5 a share IIRC, and also cut its dividend to .01 per share. It was also very badly managed. It is now about $27 IIRC, and has increased its dividend several times.

It is small - around 2% of my total portfolio. And, if I am still alive in 2020 (who knows right?) - I will still own the stock. I never sell anything. : ).
To tell you the truth I think one of the reasons that I even started the thread is because I am kind of SHOCKED to see an iconic company like GE in the position it is in now - whether I have money in it or not. It wasn't that long ago when Welch was at the helm and I think the stock was near $100.00. But, it is not just the share price - it is the history of the company. Edison a founding father, etc ....

Culp mentioned it in an article that cutting the dividend to $.01 put more cash on their balance sheet but, panicked a lot of "regular" investors.

Thanks for the input.

I though it was a steal at 18. There is always room for downside.

In comment 14175554 barens said:

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I though it was a steal at 18. There is always room for downside.

Barens - I don't own a lot of it but, what I do own - I have owned for a long time (10 - 12 years?).

There was a nice streak there for multiple years that they paid a pretty nice dividend and I just took it all in stock. I will end up keeping it. No sense in selling now (Imho).

In comment 14175065 SJGiant said:

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Is like Sears. They need to sell assets to try and survive. There are better fish (stocks) to pick from out there.

GE is very different from Sears which got railroaded by e-commerce and the competition. GE is still dominant in different industries. They aren’t going away any time soon

In comment 14175572 Les in TO said:

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In comment 14175065 SJGiant said: Quote: Is like Sears. They need to sell assets to try and survive. There are better fish (stocks) to pick from out there. GE is very different from Sears which got railroaded by e-commerce and the competition. GE is still dominant in different industries. They aren’t going away any time soon

I like to think so Les .... and I hope I have nothing but time. Getting older .... 58 at this point.

Welch left a company which depended a lot on smoke and mirrors. Immelt added more smoke and mirrors and was exposed big time in '07-08. He then proceeded to mismanage the company even more, and yet was not given the boot until far too late. a complete fuck-up.

is selling up to 20% of its majority stake in Baker Hughes, which will generate about $4 billion.

In comment 14175685 AcidTest said:

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is selling up to 20% of its majority stake in Baker Hughes, which will generate about $4 billion.

they shouldn't have bought it in the first place.

In comment 14175689 Bobby Humphrey's Earpad said:

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In comment 14175685 AcidTest said: Quote: is selling up to 20% of its majority stake in Baker Hughes, which will generate about $4 billion. they shouldn't have bought it in the first place.

Agreed. More bad management.

are well past their prime. Don't let the name fool you. They sold GE Capital at the market low but kept all the unfunded liabilities. Bought Baker Hughes when oil was at $140 a barrel. It's been one misstep after another.

I bought at $16 and sold half my position in the high $20's. I thought of buying it back when the price dropped to $18 but all of the legacy issues are not going away any time soon. I sold the rest shortly there after.

Take your money and run. I just bought more Home Depot. They reported a great quarter and increased their outlook for the near future. The market thinks interest rates will kill the housing market but Home Depot will flourish regardless. The housing market is good HD does well. When the housing market slows people spend to fix up their current home. I heard that Lowes is considering closing some stores to lower costs. Seems like HD is the leader and will remain so for the forseeable future.

In comment 14176088 Jeever said:

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are well past their prime. Don't let the name fool you. They sold GE Capital at the market low but kept all the unfunded liabilities. Bought Baker Hughes when oil was at $140 a barrel. It's been one misstep after another. I bought at $16 and sold half my position in the high $20's. I thought of buying it back when the price dropped to $18 but all of the legacy issues are not going away any time soon. I sold the rest shortly there after. Take your money and run. I just bought more Home Depot. They reported a great quarter and increased their outlook for the near future. The market thinks interest rates will kill the housing market but Home Depot will flourish regardless. The housing market is good HD does well. When the housing market slows people spend to fix up their current home. I heard that Lowes is considering closing some stores to lower costs. Seems like HD is the leader and will remain so for the forseeable future.

I heard the same thing about Lowes on Bloomberg. It kind of surprised me.

DOW is down about 1000 points this week and S&P plummeting back towards 2640 with breath-taking pace (down 150 points in <7 days).

recovered a little to around 5500 currently. does it test 4500 low? break thru to even lower? anyone still holding out for a major bounce?

In comment 14176088 Jeever said:

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are well past their prime. Don't let the name fool you. They sold GE Capital at the market low but kept all the unfunded liabilities. Bought Baker Hughes when oil was at $140 a barrel. It's been one misstep after another. I bought at $16 and sold half my position in the high $20's. I thought of buying it back when the price dropped to $18 but all of the legacy issues are not going away any time soon. I sold the rest shortly there after. Take your money and run. I just bought more Home Depot. They reported a great quarter and increased their outlook for the near future. The market thinks interest rates will kill the housing market but Home Depot will flourish regardless. The housing market is good HD does well. When the housing market slows people spend to fix up their current home. I heard that Lowes is considering closing some stores to lower costs. Seems like HD is the leader and will remain so for the forseeable future.

GE stock got tossed out of the Dow earlier this year after a 100+ year run. Was replaced by Walgreens