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.
I dont understand why.. 1:8 reverse? General Electric (GE) – GE struck a deal to combine its aircraft leasing unit, GE Capital Aviation Services, with Ireland’s AerCap (AER). It had been reported earlier this week that the two sides were in talks. Separately, GE’s board is recommending a 1-for-8 reverse stock split to put its outstanding share levels more in line with companies of comparable market capitalization. GE rose 2.2% premarket, while AerCap jumped 4.1%.
Dillution? Name 1 company that benefitted from a RS. Haier bought the appliance side years ago, most of it has been sold off. Whats left of any realistic value? Much like SEARS?
The reasoning is weird, they want to appear better priced? To who? Anybody that buys GE is not buying it because they do not understand valuations.
Nevertheless, the timing is perfect as the short term cause for mark-up was used up. But there appears to be a longer term cause that projects to $20. For now it will probably need to build more short-term cause to allow the big boys to re-accumulate shares from the public.
Hourly chart. If this bear flag pops, these would be the support levels I'd be watching. $12.67, $12.41, $12.04.
Reverse Splits are never good for existing shareholders. Dillution is your enemy. These type plays are like shooting fish in a barrel, put options were the winners.
I'm sure that is the ultimate goal. Why would a struggling company RS just to make a higher share price more attractive. You are lowering the existing share count by X amount. Who benefits from that? I have yet to find 1 company that has benefitted. The share price has dropped based on the news. GE was once a American Icon, due to over diversification and bad management it it nothing more than a sinking ship.
