Good. Sleep with dogs get fleas. Or sleep with socialists in this case. I wonder how all that next generation energy crap looks to the GE board now. I got out at 17 and am glad I did.OneNightW said:
They seemed to well connected with the last administration. Not a coincidence that they're tanking now that Obama and company are out of the picture.
Do you honestly think it has found a support? There is just too much lingering for me to have any faith in them. Plus, the mismanagement.oldarmy1 said:
It's always interesting that just as everyone throws in the towel and is most negative on a stock it finds a support bottom.
They have a ways to go but if you sold off all of the units the intrinsic valuation comes in closer to $19/share.IrishTxAggie said:Do you honestly think it has found a support? There is just too much lingering for me to have any faith in them. Plus, the mismanagement.oldarmy1 said:
It's always interesting that just as everyone throws in the towel and is most negative on a stock it finds a support bottom.
Quote:
Like Goldman Sachs, General Electric found itself vulnerable when the market melted down six years ago. In the run-up to the financial crisis, General Electric had seen huge growth in its finance division. That left General Electric dangerously exposed to the credit crunch that hit the financial markets in late 2008.
As part of a broader capital-raising strategy that included a $12 billion offering of common stock to investors, General Electric turned to Berkshire Hathaway in October 2008, giving Buffett the chance to invest $3 billion in General Electric in return for preferred stock and warrants on GE. As with Goldman, General Electric paid Berkshire a 10% dividend on the preferred shares, and Berkshire got the right to buy $3 billion in GE stock for $22.25 per share at any time over the ensuing five years.
The deal gave investors confidence in General Electric's plan to reduce its financial exposure, a strategy that has worked out well in the years since the crisis. GE's recovery took longer than Goldman's to pan out, but in the end, General Electric repaid the $3 billion plus a 10% premium for the preferred shares in 2011, and Berkshire ended up taking $260 million in General Electric shares last year in lieu of exercising its warrants.
My gosh. Jack Welch turned GE into a bank. He is responsible for their decline.Quote:
GE hasn't been the same company since Jack Welch left all the way back in 2001.
You mean Welch, right? Yeah, unregulated banking, financial speculation, get out before 2008...Quote:
You could argue he was just in the right place at the right time.
94chem said:My gosh. Jack Welch turned GE into a bank. He is responsible for their decline.Quote:
GE hasn't been the same company since Jack Welch left all the way back in 2001.
There's more to a company than "business mix." Once you gut innovation, you can't flip the switch and get back in it. That is a multi-decade decision.Quote:
Welch left GE seven years before the GFC. Jeff Immelt and the Board don't carry the full weight of the business mix nearly a decade later?
That's... not ideal.Quote:
General Electric Co.'s GE -10.08% shares fell Tuesday after the conglomerate slashed its dividend to a token amount and said federal regulators had opened a criminal probe of its accounting practices, as GE seeks to restructure under new Chief Executive Larry Culp.
