General Electric (Symbol-GE)

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AltaRed
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Re: General Electric (Symbol-GE)

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Nor I. I think this will be a long, slow recovery, or it will come apart with huge separation costs.
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Re: General Electric (Symbol-GE)

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Bloomberg article How GE went from American Icon to Astonishing Mess

I agree that there is still a lot of pain to play out in this stock and won't be sniffing around until "the death of GE" starts becoming fashionable on TV and with pundits.
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Re: General Electric (Symbol-GE)

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SkaSka wrote: 01 Feb 2018 17:00 Bloomberg article How GE went from American Icon to Astonishing Mess
Someone :wink: was quicker to the trigger as renewed interest in this topic was spawned by
Peculiar_Investor wrote: 01 Feb 2018 09:39 An interesting read for those following or holding GE, or perhaps anyone else with holdings in large conglomerates.
How GE Went From American Icon to Astonishing Mess - Bloomberg
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Re: General Electric (Symbol-GE)

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Peculiar_Investor wrote: 02 Feb 2018 09:54
SkaSka wrote: 01 Feb 2018 17:00 Bloomberg article How GE went from American Icon to Astonishing Mess
Someone :wink: was quicker to the trigger as renewed interest in this topic was spawned by
Peculiar_Investor wrote: 01 Feb 2018 09:39 An interesting read for those following or holding GE, or perhaps anyone else with holdings in large conglomerates.
How GE Went From American Icon to Astonishing Mess - Bloomberg
Whoops! Need to work on my clicking on links and reading skills :oops:
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Re: General Electric (Symbol-GE)

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The last original member of the DOW is no longer part of the index, General Electric loses place in elite Dow Jones Industrial Average | Reuters
Reuters wrote:S&P Dow Jones Indices said on Tuesday that GE (GE.N), an original member of the Dow when it was formed by Charles Dow in 1896 and a continuous member since 1907, will be replaced in the 30-component stock average
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Re: General Electric (Symbol-GE)

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How a mighty star has fallen. Time to drive a stake through the heart of that dinosaur. It needs to be broken up into its constituent parts, with some businesses sold completely.
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Re: General Electric (Symbol-GE)

Post by gobsmack »

This was an interesting interview with Jack Welch, the man who led GE through its mighty expansion. The interview was recorded last September.

I know hindsight is always 20/20 but are there any lessons here for people who are buying and holding stocks of large dividend payers in Canada? Wasn't GE a dividend aristocrat?
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Re: General Electric (Symbol-GE)

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To me, the key lesson is one cannot just 'set and forget' and wake up in 20 years no matter what the historical track record is of a stock. Even 'widows and orphans' stocks can lose their way.

Perhaps the biggest lesson is conglomerates who diversify their operations into too many directions lose perspective and direction, and forget what they are best at. Hint: It is not everything.
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Re: General Electric (Symbol-GE)

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The "Nifty Fifty" didn't work, either.
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Re: General Electric (Symbol-GE)

Post by Sensei »

Hi,
gobsmack wrote: 20 Jun 2018 05:01 Wasn't GE a dividend aristocrat?
Speaking as a person has been fooled twice by this company, I can attest to the fact that GE is not a dividend aristocrat (25 straight years of dividend increases), or even an aristocrat.

This dividend was cut by 66% in 2009, and most recently by 50%.

I sold out at just over $14 a few months ago. I was always dazzled by the technology and quality of GE's industrial products. Also, the financial arm made sense at one time, but dabbled in the wrong financial products just prior to the crash. Apparently, there is more to running a company than excellence in manufacturing. This time, bad management, too big, too unfocussed, I don't know. I definitely need a hotline and someone to tell me 'Don't do it' if I ever even think about this company from hell again.
Cheers

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Re: General Electric (Symbol-GE)

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Apparently the turnaround isn't working as planned because GE unexpectedly removes its CEO
CNN Money wrote:General Electric, mired in a deep slump, has ousted CEO John Flannery after barely a year on the job.

Flannery is being replaced by Larry Culp, a respected outsider who formerly led the industrial manufacturing company Danaher (DHR). GE installed Thomas Horton, the former CEO of American Airlines (AAL), as its lead director. Both changes are effective immediately.

GE (GE) has been hobbled by years of poorly timed deals and needless complexity that predate Flannery's tenure as CEO. Flannery launched a turnaround plan this year that would narrowly focus GE on aviation and power, but the makeover failed to instill confidence in investors.
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Re: General Electric (Symbol-GE)

Post by Dark Bear »

GE really has come down and the worst is not over after JP Morgan predicts it will drop to 6 dollars a share. Things also don't get any better looking ahead at the earnings over next 2 years.

https://www.cnbc.com/2018/11/09/jp-morg ... -to-6.html
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Re: General Electric (Symbol-GE)

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Dark Bear wrote: 09 Nov 2018 18:20 GE really has come down and the worst is not over after JP Morgan predicts it will drop to 6 dollars a share. Things also don't get any better looking ahead at the earnings over next 2 years.

https://www.cnbc.com/2018/11/09/jp-morg ... -to-6.html
Revisiting the GE stock saga.

I've captured a capital loss for 2018, selling it late last year.
Then I procrastinated in buying it back (having to mind the superficial loss rules), after seeing it touch a devilish low of US$6.66.
Eventually, I bought it back in January for about $9, still cheaper than the sell price last year.
CNBC - GE has surged 60% off its low

Then, yesterday I saw some weird entries in my TDDI account where I have my 1400 shares of GE:
WABTEC STKDIV 7 - - -$586.93
GENERAL ELECTRIC COMPANY DIVUS -1,400 - - $586.93

Which led me to
GE Completes Spin-off Of GE Transportation Into Wabtec - Quick Facts
General Electric Co. (GE) on Monday announced the completion of the spin-off and subsequent merger of its transportation business with Wabtec Corp. The deal was agreed upon in May 2018.

As per the terms of the transaction, GE distributed all 8.7 billion shares of common stock of Transportation Systems Holdings Inc. with respect to the shares of GE common stock outstanding as of the close of business on February 14, 2019 by means of a pro rata distribution, to complete the merger. The exchange ratio for the combined Spin-off/merger transaction is 0.005371, meaning participating GE shareholders will receive 0.005371 shares of Wabtec common stock for each outstanding share of GE common stock held.

Stated another way, for each approximately 186 shares of GE common stock held, a GE shareholder will receive one share of Wabtec common stock.
The cash portion for the fractional shares is yet to appear in my account.
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Re: General Electric (Symbol-GE)

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adrian2 wrote: 02 Mar 2019 10:12 Then, yesterday I saw some weird entries in my TDDI account where I have my 1400 shares of GE:
WABTEC STKDIV 7 - - -$586.93
GENERAL ELECTRIC COMPANY DIVUS -1,400 - - $586.93

Which led me to
GE Completes Spin-off Of GE Transportation Into Wabtec - Quick Facts
General Electric Co. (GE) on Monday announced the completion of the spin-off and subsequent merger of its transportation business with Wabtec Corp. The deal was agreed upon in May 2018.

As per the terms of the transaction, GE distributed all 8.7 billion shares of common stock of Transportation Systems Holdings Inc. with respect to the shares of GE common stock outstanding as of the close of business on February 14, 2019 by means of a pro rata distribution, to complete the merger. The exchange ratio for the combined Spin-off/merger transaction is 0.005371, meaning participating GE shareholders will receive 0.005371 shares of Wabtec common stock for each outstanding share of GE common stock held.

Stated another way, for each approximately 186 shares of GE common stock held, a GE shareholder will receive one share of Wabtec common stock.
The cash portion for the fractional shares is yet to appear in my account.
The cash-in-lieu of fractional shares has been posted in my TDDI account on Wednesday, March 06: US$37.97.

Fortunately, it's in my RRSP, so the tax intricacies including how to deal with the cash do not apply for me.
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Re: General Electric (Symbol-GE)

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General Electric whistleblower: 'I think I have a few smoking guns' Harry Markopolos reveals fraud




Madoff whistleblower Harry Markopolos details fraud allegations against General Electric

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Re: General Electric (Symbol-GE)

Post by tony767p »

So....

I seem to have missed numerous "Sell" signs, and still hold a few hundred shares. I guess my 'Contact Info' card fell off Warren Buffets's rolodex...

With no need for the cash, and no Capital Loss potential, should I Sell, or Hold, what say ye?

Thanks, Sigh...

Tony
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Re: General Electric (Symbol-GE)

Post by Sensei »

Hi Tony,

I skimmed back through most of this thread as it is a stark reminder of what can happen to a company. It was very educational for me and I would recommend anyone to read it through.

I noted someone name Sensei... OMG that's me!... has been an-on-and off holder of GE. I understand the meaning of angst over this one.The last time I sold was definitely the last time. Three dividend cuts in 10 years (2009 justified of course), dramatic share price depreciation, the names Markopoulos, Madoff, and Enron* swirling around in the news...

You can draw your own conclusions, but I don't think I'm going out on a limb to say there are better places to put your money to work at least for now.


*Markopoulos mentioned the present problem with GE is worse than Enron.
Cheers

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Re: General Electric (Symbol-GE)

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Anyone still follow or invest in GE? Today in their GE Announces Detailed 2021 Outlook | GE News
GE News wrote:Reverse Stock Split
In light of its significant transformation over the past several years, GE is also announcing today that its Board will recommend that shareholders approve a reverse stock split at a ratio of 1-for-8 and a corresponding proportionate reduction in the number of authorized shares of Common Stock. The reverse stock split would decrease the number of shares outstanding to a number more typical of companies with comparable market capitalization. Whether and when to effect it would be at the discretion of GE’s Board, at any time prior to the one-year anniversary of its 2021 Annual Meeting on May 4, 2021. GE will share additional information in a preliminary proxy filing, which it expects to file later this week.
A reverse stock split generally is never a good thing.
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Re: General Electric (Symbol-GE)

Post by Hammerer »

Not a GE shareholder these days, but I can’t stand shares that trade for $hundreds.

It makes it hard to buy the exact amount of dollars of shares I want. I can only buy less than what I have, why make it more difficult for me to buy as close to $x as possible?

And harder to do board lots, but I guess it’s cheaper if you end up paying per share to purchase.

Definitely a rounding error for the corp in terms of overall effect, but it is annoying.
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Re: General Electric (Symbol-GE)

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Hammerer wrote: 10 Mar 2021 16:34 And harder to do board lots, but I guess it’s cheaper if you end up paying per share to purchase.
If you trade options, all brokers that I know of have a fixed cost plus one that's dependent on the "number of contracts" in the trade (100 shares). That part will become eight times cheaper.

I do own a relatively small position in GE and was surprised to see the $1 drop today (8%).
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Re: General Electric (Symbol-GE)

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Another shoe has dropped been announced, GE Plans to Form Three Public Companies Focused on Growth Sectors of Aviation, Healthcare, and Energy | GE News
GE press release wrote:GE (NYSE:GE) today announced its plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy, by:
  • Pursuing a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health in early 2023, in which GE expects to retain a stake of 19.9 percent; and
  • Combining GE Renewable Energy, GE Power, and GE Digital into one business, positioned to lead the energy transition, and then pursuing a tax-free spin-off of this business in early 2024.
  • Following these transactions, GE will be an aviation-focused company shaping the future of flight.
As independently run companies, the businesses will be better positioned to deliver long-term growth and create value for customers, investors, and employees
The US media is covering the death of this conglomerate, for example Storied General Electric plans to split into 3 public companies : NPR.
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Re: General Electric (Symbol-GE)

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Why does splitting a company into multiple generate more shareholder value? I would think it would be more profitable to maintain a single entity due to the economic of scale.
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Re: General Electric (Symbol-GE)

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Not necessarily if the businesses are substantially different. An investor may like only vegetables on their own, not part of a beef stew, and accordingly doesn't value the overall menu item as highly.
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Re: General Electric (Symbol-GE)

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kenwood wrote: 09 Nov 2021 18:43 Why does splitting a company into multiple generate more shareholder value? I would think it would be more profitable to maintain a single entity due to the economic of scale.
GE and many other conglomerates and holding companies are often valued at a discount rather than the sum of the parts. More colour and reasons can be found in Conglomerate Discount Defined.
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Re: General Electric (Symbol-GE)

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AltaRed wrote: 09 Nov 2021 18:49 Not necessarily if the businesses are substantially different. An investor may like only vegetables on their own, not part of a beef stew, and accordingly doesn't value the overall menu item as highly.
Outstanding analogy. :thumbsup:
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