The GE earnings call was better than expected. Apparently, austerity measures and divestitures are going well. Grounding of the 737 Max is hurting them a bit and will cut deep if it continues past summer. I'm happy for GE that they continue to recover from what seems like some gross mismanagement. On the other hand, I still don't trust the company sufficiently to invest in it.
Boy howdy, that's the understatement of the year. They are selling everything of value to try to keep certain sectors. All to counter the after effects of lying to shareholders for years by faking numbers to support an otherwise unsupportable dividend yield. The house of Ponzi cards finally came down, and so went the old CEO too. So there is hope maybe. But a big blue chipper it no longer be.
GE still has a huge amount of debt. With the exception of jet engines, most of GE products sell. There is cash flow. But it's a long way from paying back what the last CEO stole.
Sometimes I wonder if people actually watch Jim Cramer for his wisdom and advice. Or if anyone remembers how much bad advice he gives. When he's reassuring the audience that nothing is wrong. As the building is on fire.
One year on, it would seem Mr. Markopolis' report was either wrong or over estimated the magnitude of the problems at GE. We're starting to see a small up turn in the share price.
