GE - General Electric

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by Stockaholic, Mar 31, 2016.

  1. KyleLennon

    KyleLennon Member

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    Today, Immelt’s successor John Flannery has embarked on a turnaround of GE, wisely choosing to restore accountability and focus on three core businesses: aviation, power, and renewable energy. The three key issues the company faces today are 1) secular threats facing GE Power, 2) a lack of liquidity, and 3) lingering liabilities at GE Capital.
     
  2. Timbo

    Timbo Active Member

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    Took a sizeable position for my ROTH in this as well. This is a long term hold.
     
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  3. Timbo

    Timbo Active Member

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    Took a dump right after I bought in, NATURALLY. Started to add more last week but didnt. I hate the buy n hold strategy but have forced myself to hold in my ROTH. Drives me crazy watching it bounce around, long term G.E. is a winner but the trader in me wants to cash in the chips and reshuffle the cards..LOL.
     
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  4. StockJock-e

    StockJock-e Brew Master
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    Solid move here +4% but its going to hit some resistance in a bit.

    The previous moves of this magnitude were all sold into.
     
  5. T0rm3nted

    T0rm3nted Moderator
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    Going to break out of this wedge?

    upload_2019-7-11_11-7-50.png
     
  6. Mark**

    Mark** New Member

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    Here is a poll for GE.

    If you hold General Electric or IF you did hold it, what would you do?

    At this time, it has almost no dividend and it sells for $10.44 share, very down.
    Negative forecasts for the rest of the year.

    Vote: YES, No--wait and see(HOLD) or BUY
     
  7. StockJock-e

    StockJock-e Brew Master
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    Lowest levels since Jan, entire years gains gone here for this former bellwether.
     
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  8. StockJock-e

    StockJock-e Brew Master
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    GE shares tank more than 13% after Madoff whistleblower calls it a ‘bigger fraud than Enron’

    • General Electric shares fall after Madoff whistleblower Harry Markopolos targets the conglomerate in a new report, calling it “a bigger fraud than Enron.”
    • The 175-page report claims GE was hiding the depths of its financial problems and would need to significantly raise its insurance reserves. It also points out alleged accounting issues with its oil and gas unit.
    • “My team has spent the past 7 months analyzing GE’s accounting and we believe the $38 Billion in fraud we’ve come across is merely the tip of the iceberg,” Markopolos says in the report.
    • Markopolos says he has given the report to securities regulators and that certain information he has uncovered was given to law enforcement only, and is not in the public report

      https://www.cnbc.com/2019/08/15/ge-...polos-raises-red-flags-on-its-accounting.html
     
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  9. TomB16

    TomB16 Well-Known Member

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    Amazing stuff.

    Is anyone shorting GE?
     
  10. TomB16

    TomB16 Well-Known Member

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    After watching quite a few interviews of Harry Markopolos and legions of others, it seems to come down to Mr. Markopolos claiming systemic, long term, fraud and everyone else, including CNBC moderators, saying there may be an anomaly or two but everything is fine.

    My gut reaction is to assume the CNBC side is wrong. lol!

    A look at the published stats suggests that if $38B of published enterprise value were to go away, they would be in trouble but not bankrupt. Mr. Markopolos has said GE is going to go bankrupt.

    I'm not sure what to think about this but GE has been a rotten apple for years so it wouldn't be surprising if they were to experience difficulty.

    I've read many forum posts on this and other message forums suggesting GE as an exciting opportunity, over the years. It's been on the verge of turning things around for as long as I can remember.
     
  11. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    They've been cooking the books for years. The Street knows this and knows they will likely go bankrupt. The media knows this too. Its just the stupid investing (buy and hold) public that isn't in on it. They are like the guy who goes to the poker game not knowing who is the patsy...its them. The Street has been quietly distributing to the public for years and the media compliantly pumps the stock from time to time.

    Mr. Markopolos more than once said he works for the investing public, and in the larger sense he is, because behind the accounting fraud he is also exposing the Street's and media's game of distributing the losses to the public. It is interesting to note how quick the media are to point out he is profiting from the short trading of his undisclosed hedge fund client but they won't go near the larger-than-fraud crimes of manipulated distribution.
     
    #71 Onepoint272, Aug 17, 2019
    Last edited: Aug 17, 2019
  12. Kat

    Kat Member

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    General Electrics moves under the red Tenkan line and the Kijun blue line. There is no support, there is resistance. Stochastic has reached level 20, but this is not enough. Stochastic barely touched the oversold level. Therefore, General Electrics needs to be sold. This will move down. Until 7.00 for sure, and maybe lower. Here it will be necessary to start thinking about long positions.

    Weekly
    1.png
     
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  13. TomB16

    TomB16 Well-Known Member

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    Q3 earnings report is out and everything seems to be generally fine.

    It would seem that Harry Markopolos was wrong.
     
  14. TheSmelloscope

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    Hey guys, I'm new here. Decent understanding of fundamentals and other basics but still a novice. I've been holding GE for about 10 years and am in the process of re-balancing my portfolio. Right now I'm at about a 25% loss on GE and I'm currently investigating whether I think it's a good time to buy more or jump ship. It seems the company is in pretty bad shape the last few years, and looking at their long term financial trends I'm not seeing many reasons for optimism. I'm not opposed to riding out a 3-5 year down-turn, but I don't want to hang out on a stinking ship.

    What do you think? Do you see any reasons for optimism? Or is the stench I'm detecting real?
     
  15. TomB16

    TomB16 Well-Known Member

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    If I knew what will happen with GE in the future, I would be living in a Scandinavian brothel right now. With this post, all I can offer is the perspective of someone who has orbited the sun more than most.

    With a beaten down company, there are a few possible outcomes:

    - often, these companies die
    - often, these companies recover (look at GM)
    - the largest companies often receive government help to prevent them from going under

    GE has about 250K employees and their insurance business underpins a lot of important institutions so I think the prospect of a government bail-out is real. This dramatically increases their chance of success.

    So... I'd place better than even odds for some sort of recovery at GE. Based on their history, I think the odds of GE going on to prosper and be a well run company are low. I'd look for stability as the best likely outcome.
     
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  16. TheSmelloscope

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    Very helpful analysis and thoughts, thank you Tom. I think I agree with all of your assessments, there is real risk they could continue to fizzle, but it does seem that they have a better than 50% chance of recovering eventually. I'm going to keep reading and researching this weekend before I make any moves.
     
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  17. TomB16

    TomB16 Well-Known Member

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    Further....

    We've all had dogs in our portfolio. Even if GE recovers and is 30% higher in 3 years time, you might still be better off to cut your losses and go with VOO, or another well performing stock. Don't forget to consider the opportunity cost incurred during the recovery time.

    My technique is to invest a carefully considered amount of money in a company and, if things go badly, I do not buy more based purely on price. I pay close attention to what management is doing. If I feel they have a good approach and they are honest (most management teams will milk a company of it's money and then walk away from the carcass... I look for that.), I will probably hang in there with them and maybe buy more, regardless of performance. That makes me an investor. If I do not have confidence in management, I will sell the company regardless of the recovery prospects.

    Again, I'm an investor, not a trader. I only share my approach as you may find some value in it as reference.

    I wish you well with your portfolio.
     
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  18. TheSmelloscope

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    Excellent, thanks Tom. I've been looking for a good online community that includes investors (and not just traders), so I'm excited to know you're out there.

    I admire your technique. It's almost identical to what to I've tried to do since I first started learning in 2008. Unfortunately I've been woefully inconsistent. I tend to be diligent for about 3 or 4 years and then get distracted for a year or two. Last time I thoroughly investigated GE was Q1 2017. I think the share price was over $25, and at that time I felt good about holding for another year or two. There may have been red flags, but I managed to miss them. Thankfully I bought the stock at about $15, and I've had some winners to take up the slack.

    Excellent point about opportunity cost. I don't like the idea of sitting around and hoping for a bailout or some other miracle while plenty of fundamentally sound companies are out there thriving.

    I think it's probably time to ditch GE, but I'm going to closely compare them against their peer group first just to be sure. I'll post some results here once I'm done.
     
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  19. TheSmelloscope

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    Finished sniffing out GE over the weekend. As expected, the results weren't pretty. In fact, to me it seems that most Large Cap Industrial Conglomerates are in a bit of a funk... and GE may be the funkiest of them all.

    Using my own 100 point system (aka- The Smelloscope) I closely compared GE to 3 of its competitors- HON, MMM, and SIEGY. My system tries to measure Fundamentals, Value, Management Effectiveness, Insider Information, Aggregated Pro Analysis, Dividend Data, Current News, and Current Social Vibe.

    I'm a novice, so I'm sure there are many flaws in my system, but it helps me get a basic picture of how companies compare to their peers and to their own past performance. Here are the scores I arrived at for GE and its competitors:

    GE = 16/100 (poor showings in nearly every category)
    SIEGY = 26/100 (decent value, mixed pro-analysis reports, poor management)
    HON = 34/100 (decent management and pro-analysis, but mediocre or poor in almost every other category)
    MMM = 46/100 (decent management and value, mixed results in other categories)

    So yeah, no surprise here but I decided to sell all of my shares of GE.
     
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  20. TomB16

    TomB16 Well-Known Member

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    GE continues to tread water. No bankruptcy, as per Markopolis.

    I just read a consensus earnings report indicating $0.18. We will find out on Wednesday.

    Does anyone have any insight into what's going on at GE?
     
    #80 TomB16, Jan 27, 2020
    Last edited: Jan 27, 2020

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