Amazing how stock analysts are still pumping the GE stock and continue to be bullish this week about Q3 results on Oct 20th and the state of GE, even with all these awful layoffs and pending doom. In my mind, they haven’t seen anything yet and the stock could go in the single digits. It’s going to be a rocky road for the next several months at a minimum. I think the issue goes way beyond just laying off $2B of people. GE has quality issues, demand issues, etc. Anyone agree?
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Don't know about layoffs, but my take on this post is Wall Street views layoffs as a cost reduction and a cash increase so that won't drive the stock price down. Layoff announcements usually do the opposite and push the stock price up.
I ignore Wall Street analyst outlook. Many analysts own the stock so they are biased. Some will try to pump it up so they can dump their shares and get out, or drive it down so they can buy it at a lower prices or because they have a short position on the stock so the lower it goes the more they make. Some might give their honest opinion about whether they think it will go up or down but I only go on the fundamentals of a company and what I think their long-term outlook is. Wall Street is quarter to quarter when in reality a company is fundamentally no different from the last day of a quarter to the next day. Either their 2, 3, 4, 5, 10 year outlook is good or it's not.
Too many Chiefs and not enough Indians in Schenectady.
Agree that many analysts are pumping the stock, but disagree that it will see single digits. Best guess is that it has another 10-15% downside still to go. It's now clear that upper management made many, many mistakes during the Immelt years and financial transparency was not good. All GE employees are paying the price now, but many things said about the company on this site are way over the top. I may buy the stock again when the price goes under $20. No need to rush in. This turn-around will take a long time.
Layoffs are a good thing for Wall Street and is usually rewarding with higher stock price unless there are other factors. Bottom line is stock analysts do not believe anything GE management tells them because GE has under performed and over promised since Immelt took over in 2001. Trian might be able to pump up the price by breaking up the company then dumping but GE is not a long term play with all the internal issues and lack of innovation.