$120 billion in debt and $70 billion owed to their pension plan.
No obama bailout this time.
They are toast.
My bet is that GE is dead, dead, dead.
I worked for GE healthcare for 12 years from 2000-2012. It dropped to about 9 during the 2008 issues and rebounded. Immelt destroyed a lot of value, but that being said I think it is worth more than what it’s going for now.
I messed up on some option buys a month or so back before one of the step downs, but I’ve got a long position that I’m holding on to and adding periodically.
The biggest disappointment for me was the dividend cut. I think that has caused a lot of income funds to sell off to reallocate and meet their fund requirements. There is little doubt in my mind that there are issues with the company, but I think in the long run they will survive.
Nah.
Something stinks here...
I think it’s very possible that Warren Buffet takes over. And if he doesn’t....
So the upside is capped, downside is 100%.
In 1999 investors thought this company was totally infallible. There are people that have lost a significant part of their life’s savings due to this one.
Before 2008, GE was one of only a few companies on earth with a AAA credit rating. I suspect much of the reason for the potential death was the leverage that was created via GE Capital.
Remember those stupid radio ads from “Jack at Banyan Hill” telling us how we need to stake our claim to get our fair share?
Immelt was an unmitigated disaster. He sold off key business blocks like locomotive and larded up staff.
A $7.00 stock that loses $3.85 per share is not toast?
what is the p/e for GE? It’s about 19. Not depressed and not in the stratosphere. I have it as a hold (if you have it), not a buy or a sell.
It is in the midst of a lot of changes, which is moving capital and changing revenue outlooks, in both directions depending on which segment of the company is being looked at. Management at the moment is viewed favorably and it may be time to wait and see how their moves work out. It shouldn’t take more than 8 quarters during which to see the $$$ direction resulting from their moves today.