How low can it go?
11 replies (most recent on top)
$0. Minus broker fees!
Immelt was a gambler? Eh. More like a procrastinator. The guy will be two years too late to his own funeral.
Trust Flannery he knows his way around a company and more importantly a company report. I think he will sort out the bull sh--ters.
Immelt never showed any understanding and was a gambler. He stopped the conversation s around the share price, he bought companies selling sub prime mortgages and calls them a black swan event. I remember one of his first acts against employees was to stop share of success.
Remember 1999-2000, Welch was CEO of the year, GE had #1 market cap on all US markets, it was the safest place to put your money because it was so diverse and had such great people. Stock peaked just below 70. Dropped all the way to 6 1/2. 17 years later it rallies to 33, not even close. Welch turned GE into a financial company. The financial crisis hurt GE really bad. He left the new guy with out much to work with and to try (and fail) to turn it back into a industrial company.
It is all about cash - how much does GE have and how much are they generating. I haven't looked at GE numbers but WS knows how the cash is flowing. There is a point where you have to declare bankruptcy and start over. Businesses generate cash if sales are good/ the economy is good. If you think the economy is strong, GE sales will grow - sell more stuff - then may be that will be enough to pay back debt. (IMHO I think economy is more at a top vs. a bottom.) GE is adding more debt to pay pension fund - that is a Ponzi plan. Rising rates - now at all time historical lows - will hurt GE trying to pay debt
If you recall back in 2009 time frame it went down to like 6.50 a share, then went up to like 33.00 until it started going down again.
How does the former executive team even show their faces in public? What a disgrace.
"That will never happen."
- Kenneth Lay
Worst case scenario is $0 per share. Several years is a long time to wait for a company that doesn't look past the current quarter's numbers. Especially when that company needs 11 years to notice a $6.2 Billion miss.
Where did you get that number. That will never happen unless the US economy tanks. Worst case is somewhere around 11-12. If gets there lots of institutional buyers may jack it up a little. Don't be s---ed in because if they can fix it will be several years to right the ship.
$0/share
even lower, just wait. it is all over