http://thecrux.com/the-final-domino-of-the-last-crisis-falls/
Scary and criminal what has been going on at GE for decades...
11 replies (most recent on top)
Bringing in an Aviation person is the wrong move, we are just as hosed as the rest of them, it just hasn't come to light yet. It will. We need an outside person to be the CEO, and for that person to declare an outside auditor will be brought in to find out where all the money went. Do that. and the investors will stand behind us.
This article is spot on, the stock is going lower. The power division needs a new leader and until Flannery makes the move that division is not going anything. GE needs to bring in someone from aircraft engines or from another OEM GT supplier to straighten the largest division out.
No, GE is more like The Wells Fargo of the Power Business; like peeling an onion....and finding metrics driving the wrong behavior and Uber short term view; per week basis. No chance to change culture when JF and RS bleed blue .
Wow, that's a scary read. And yet, GE today still books revenue for major projects well in advance of actual money coming in. The scam continues....
GE is Enron !
They should use the same cast from "The Big Short"
I'll wait for the movie to come out on this in a couple of years.
Wow. What a read. It is a bit sensationalized to sell newsletters, but it still raises valid points, in my opinion. Oh well, GE USED to be great...
GE also reminds me of Enron. Extremely unethical on many levels.
This seems a very informative article about reading a corporate balance sheet. Apparently it has been clear from the financial reports for a while that GE was over leveraged. As the article states:
"More than $50 billion of this buyback/dividend issuance occurred in 2014, 2015, and 2016… with more than $30 billion occurring in 2016, the last year of Jeffrey Immelt’s reign as Welch’s successor as chief executive. Clearly, the company couldn’t afford these distributions and should have used the capital to shore up its balance sheet and pay down debt."
"But buying stock and paying dividends propped up the price of the stock in the short-term and undoubtedly contributed to the value of Immelt’s (and other managers’) stock options. At the time of his retirement, the value of Immelt’s options was estimated at more than $200 million."
Enron 2.0