Is GE going down the drain, or is there still reasonable hope of not getting worse.

[Lakewood90712]

Mom has GE stock, A LOT mostly from her dear departed husband, and he got it from his father.

Mom rode it thru the up's and downs for the last 30 years or so, for the dividend. But are further cuts likely ?

The jet engine biz is strong as long as the airlines are buying planes, the locomotive biz was sold off, and the rest of the company seems to be a train wreck for lack of a better term.

 

[97guns]

How much in GE right now, I’m thinking it’s one of those too big to fail companies, it’s been around a long time and has a huge footprint. When Corning got beat down to under $5 I snapped some up on that same premise

 

[NYEXPAT]

When my Dad passed away in 2017 he had about $750k that was bought in 2009. Sold it all off at around $28, I think. I think the Divi in it's reduced form is unlikely to survive.

 

[aja8888]

No companies are too big to fail. I used to work for Anaconda, remember them?

 

[Texas Proud]

How much in GE right now, I’m thinking it’s one of those too big to fail companies, it’s been around a long time and has a huge footprint. When Corning got beat down to under $5 I snapped some up on that same premise

It is NOT too big to fail for the stockholders... when people talk about too big to fail they usually mean the banks and that is because they are so intertwined with everything else it is a lot more pain to let them fail than to bail them out... I was a bit surprised with the car companies last time...


But, if you were a GM shareholder or bond holder you got very little to nothing... sure GM is still going and it appears to be going strong, but I know the mom of my best friend lost a good amount she had invested in bonds with GM...


IMO the worst is that they sell off their various businesses and have very little left... the good is they are able to shed bad business and eventually pay off their huge debts on their pensions.... neither one looks like it is good for the shareholders for a long time....

 

[njhowie]

If GE does it right, things can work out very well for today's shareholders. The key is selling the right businesses, and spinning off others in to separate companies to shareholders.

We went through this with Tyco, and the end result has been extremely rewarding for shareholders who held through the rough years. We now have shares in about 6 different companies, value well above prior Tyco value, most all are doing well - profitable good dividend payers, etc. The remaining "Tyco" recently merged with Johnson Controls. It was the new CEO brought in who cleaned house over a few years, reorganized and refocused the company. GE is at about the same place where Tyco was when things began to turn around. It also appears that GE's new CEO is a practical guy, knows what he needs to do, and will take his time to do it right.

GE's dividend will be reduced as they sell and spin off pieces, as the remaining GE will likely not generate the cash flow necessary to sustain the current dividend - I believe that they have already said this in the past week or so.

 

[Car-Guy]

I've been swing trading (not sling ) it the past few months and made some good bucks. (Even caught the dividends on ~15k shares in mid June, to be paid in late July) Sold it all just above 14 last week. I'll probably wait until it's well below 13 and try it again. Not for the faint of heart. It's a lot like playing a really slow game of craps or roulette.


I had thought about buying and holding but I'm just not sure yet if the new CEO can make the turnaround.

 

[Breedlove]

If you get a chance check out Seeking Alpha , they are writing articles on GE almost every other day . It seems unless they change their management they are doomed to a slow death. A really good article came out this week on their O&G division how it is so messed up.

 

[Jerry1]

I've been swing trading (not sling ) it the past few months and made some good bucks. (Even caught the dividends on ~15k shares in mid June, to be paid in late July) Sold it all just above 14 last week. I'll probably wait until it's well below 13 and try it again. Not for the faint of heart. It's a lot like playing a really slow game of craps or roulette.


I had thought about buying and holding but I'm just not sure yet if the new CEO can make the turnaround.

At a much smaller casino, I’ve been buying puts. I only do options to gamble (easier than actually going to the casino) so if I can mak a couple hundred here and there, I’m happy. GE is on the radar. Thinking generally it’s going down.

 

[Breedlove]

Watch BHGE , this is a company GE owns 63% of . I think they will divest by the end of the year .

 

[Car-Guy]

At a much smaller casino, I’ve been buying puts. I only do options to gamble (easier than actually going to the casino) so if I can mak a couple hundred here and there, I’m happy. GE is on the radar. Thinking generally it’s going down.

At a casino, each "play" is over a matter of seconds. With swing trading the "gambling high" (pun intended) can last for a few hours or days or even weeks. At least with swing trading I can dollar cost average if the stock keeps dropping. Sort of like using the martingale system at a casino table game (which eventually fails since casinos protect against by having table limits)

 

[Lakewood90712]

It is NOT too big to fail for the stockholders... when people talk about too big to fail they usually mean the banks and that is because they are so intertwined with everything else it is a lot more pain to let them fail than to bail them out... I was a bit surprised with the car companies last time...


But, if you were a GM shareholder or bond holder you got very little to nothing... sure GM is still going and it appears to be going strong, but I know the mom of my best friend lost a good amount she had invested in bonds with GM...


IMO the worst is that they sell off their various businesses and have very little left... the good is they are able to shed bad business and eventually pay off their huge debts on their pensions.... neither one looks like it is good for the shareholders for a long time....

Brings back bad memories, Mom had the old GM, but not that much of it. I could't get her to sell, she kept insisting" it pays such a good dividend". To rub salt in the wounds, when I finally did get her to try and put in a sell order those lovely folks at Morgan Stanley ( her "team" as her original Financial & Annuity Sales person, had retired ) These sob's didn't want to put in the order " well it's only worth $2 a share" was the conversation. Became $0 per share a few days later. If I would of been in that guys office, he would suddenly need some urgent dental work.