GE An $ 8 stock by December?

[MI-Roger]

Quote:

Originally Posted by Lakewood90712 J She also rode the old GM down to 0 for the reason.

I sill have two single share Stock Certificates for the Old GM. Maybe I will frame the one without my SSN someday to hang on the wall.

How and why do I have them? Back in the early 1970's I was a Co-Op student at GM. In my first year of participation in their Employee Stock Ownership Plan my wages and contributions were only enough to receive one share at year end. Due to the times this share was awarded as a paper certificate. I hung on to it for the novelty. A couple decades later GM did a 2:1 stock split and a second single share certificate arrived in the mail.

I hung onto both since we have two sons. It was only after opening the second envelope in preparation to having both certificates framed that i realized the second one was not safely frameable due to the SSN information plastered all over its face.

[bobandsherry]

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Originally Posted by Texas Proud Yea, probably right.... I was thinking of a full DTC bond issue (what I used to do)... I would make one wire to DTC and there was no charge... DTC gave each broker their share and then it was the broker's job to get to the right account.. But I bet there are a lot of shareholders who actually hold their own shares... and not held in brokers name... BTW, I also suspect that they are keeping a dividend so they can say they have been giving a dividend for..... well, looks like 119 years... https://www.abcactionnews.com/news/n...end-to-a-penny

Yeah, old as heck stock so I'll bet there's enough that still want a check in their hand each quarter. But you are probably on point that it's more about holding the bragging rights.

[ERD50]

Quote:

Originally Posted by bobandsherry Quote: Originally Posted by ERD50 Plus, it might provide an impression of hope that they will increase the div in the future. By keeping a current payment, all the addresses and account numbers for deposit are current. If they went to zero, and then started again after an extended pause, they'd need to verify all that info before they could start again? -ERD50 Why? Records management has to maintain the shareholder information regardless if there's a dividend paid so not sure where you are going with that.

Yes, but I was just thinking that with the div, they make a deposit to those people each quarter. So if they change accounts, or move, they'd probably catch up pretty quick.

Without a payment coming every quarter, it just seems some moves or deposit account changes could happen over a period of years, and Records management may not know? People would be less likely, or at least slower, in getting the update info sent in if they aren't getting a check each quarter.

May have nothing to do with the 1 cent div, but I can't think of any other benefit - it just keeps GE on the owners radar screen and current?

Ahhh, also Texas Proud's explanation could make sense: " BTW, I also suspect that they are keeping a dividend so they can say they have been giving a dividend for..... well, looks like 119 years...".


-ERD50

[Running_Man]

The reason being given for the one cent dividend is so that GE will not cause forced liquidations by all ETF and indexes that require a dividend in order to hold. SO this is more like the ALGO's are the reason.

[Running_Man]

What is stunning is that GE spent 24 billion in 2016 and 2017 (average price about $30) - which is equivalent to all income made from 2012 to 2017 buying back their own stock and basically setting the stage for the company to potentially go under when they could have funded all of their issues with insurance and pensions but didn't because of prevailing wisdom of "providing return to investors".

[aja8888]

Here's a nice summary on what GE has done to itself over the last decade or so:

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Shares of General Electric [GE] are down over 3% this beautiful Friday morning, trading at $9.20. If they close at this level, they would mark a new nine-year closing low.

https://wolfstreet.com/2018/11/02/wh...or-bankruptcy/

[bobandsherry]

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Originally Posted by aja8888 Here's a nice summary on what GE has done to itself over the last decade or so: https://wolfstreet.com/2018/11/02/wh...or-bankruptcy/

And for this run, Immelt was made $21 million the year before he was removed from turning GE into the Titanic ("only" received $8.1M comp the year he was booted) And the GE Exec's were paid a bonus last year but Flannery received $9 million in compensation as he was running this beast deeper under water.

GE did not pay bonuses to Flannery, top execs in 2017

And now GE pays Culp $21 million a year for next 4 years, either to right the ship or put it deep into the abyss of BK. And if he does turn the ship around, a 50% increase ($18.60 target) in GE by 2022 nets him $47 million more. And it gets more insane if the shares rise further.

New GE CEO Larry Culp signs stock-heavy contract worth up to $300 million if shares soar

Guess all those who were on pensions and were counting on GE dividend for the income must rest well knowing the Exec's who cost them their dividend has so richly been rewarded for a job well done.

[Lakewood90712]

Well, Flannery did some belt tightening. He ordered the corporate flight dept. shutdown after the " Phantom empty backup jet " sent on many executive flights story could not be buried.

https://www.businessinsider.com/jeff...et-wsj-2017-10

[audreyh1]

Quote:

Originally Posted by Running_Man What is stunning is that GE spent 24 billion in 2016 and 2017 (average price about $30) - which is equivalent to all income made from 2012 to 2017 buying back their own stock and basically setting the stage for the company to potentially go under when they could have funded all of their issues with insurance and pensions but didn't because of prevailing wisdom of "providing return to investors".

This is what drives me bonkers about corporate buybacks. GE is an extreme example to be sure, but there are many large companies that have shrunk themselves yet bought stock at high prices desperately to keep the earnings per share up and thus the stock price elevated. It’s financial hocuspocus and can be ruinous to the underlying business. That money just goes “poof”.

There are companies who use buybacks prudently, but abuse seems widespread.

P.S. I can’t believe the first part of pocus gets starred out if written standalone. I vaguely remember a poster by that name......

[Spiff]

Were there a lot of insider sales while GE was buying back shares?

[Lakewood90712]

Out of 16 so called " Annalists" listed on one of the financial sites , in the past 30 days, one sell , has not changed............ 8 were "buy" 30 days ago , and now 10 are "buy".

Unfortunately , I don't think we have seen all the duct tape and bailing wire that was used on the weaker parts of the company for the last 2 decades. I think Immelt and associates should pay back dues to the Magicians Union Local 23.

IMO a lot of the foundations for these financial failures were under the Jack Welch era, but keeping the ship on the same course when rocks appear cant be tied to him.

[bobandsherry]

Quote:

Originally Posted by Lakewood90712 Out of 16 so called " Annalists" listed on one of the financial sites , in the past 30 days, one sell , has not changed............ 8 were "buy" 30 days ago , and now 10 are "buy". Unfortunately , I don't think we have seen all the duct tape and bailing wire that was used on the weaker parts of the company for the last 2 decades. I think Immelt and associates should pay back dues to the Magicians Union Local 23. IMO a lot of the foundations for these financial failures were under the Jack Welch era, but keeping the ship on the same course when rocks appear cant be tied to him.

Funny, he wrote books and many other exec's of other companies head him and his philosophy in high esteem. Guess history shows how well the "Welch Approach" worked.

[38Chevy454]

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Originally Posted by bobandsherry Funny, he wrote books and many other exec's of other companies head him and his philosophy in high esteem. Guess history shows how well the "Welch Approach" worked.

I worked for Generous Electric for 5 years under Welch. I was not impressed then and even less now. Although I feel bad for the retirees under the pension system that may get shafted, and for anyone holding large amounts of GE stock expecting the dividend; I do not have any sympathy for GE and feel they are getting what they deserve. Welch was absolutely not the wonderboy CEO that others made him to be. I doubt history will ever hold him responsible for what he actually did to break the foundation of GE and start the big fall. Welch was only good at keeping the stock price up because he sold the assets of GE, that had been built up over all of the years.



I am glad I took the buyout of my small pension that I had, as I have very low confidence that it would have been around for me in another 6 years. My current feeling about GE rhymes with "truck GE"

[ERD50]

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Originally Posted by 38Chevy454 .... I am glad I took the buyout of my small pension that I had, as I have very low confidence that it would have been around for me in another 6 years. ...

Wouldn't the PBGC cover your pension? A 'small pension' from 5 years work would be under the PBGC caps. So it shouldn't make any difference whether GE is around or not, there is insurance under PBGC.

-ERD50

[bobandsherry]

Quote:

Originally Posted by bobandsherry And for this run, Immelt was made $21 million the year before he was removed from turning GE into the Titanic ("only" received $8.1M comp the year he was booted) And the GE Exec's were paid a bonus last year but Flannery received $9 million in compensation as he was running this beast deeper under water. GE did not pay bonuses to Flannery, top execs in 2017 And now GE pays Culp $21 million a year for next 4 years, either to right the ship or put it deep into the abyss of BK. And if he does turn the ship around, a 50% increase ($18.60 target) in GE by 2022 nets him $47 million more. And it gets more insane if the shares rise further. New GE CEO Larry Culp signs stock-heavy contract worth up to $300 million if shares soar Guess all those who were on pensions and were counting on GE dividend for the income must rest well knowing the Exec's who cost them their dividend has so richly been rewarded for a job well done.

And in addition to his compensation he was paid while he continued to run the company into the ground and was fired, Flannery is also receiving $4.3 million severance.

[Car-Guy]

Quote:

Originally Posted by Running_Man The reason being given for the one cent dividend is so that GE will not cause forced liquidations by all ETF and indexes that require a dividend in order to hold.

Ah, interesting, I was wondering why just 1 cent. Now that makes some sense.

[bobandsherry]

This analyst now targeting $6/share.

https://www.cnbc.com/2018/11/09/jp-m...rget-to-6.html

[Shanky]

I said last year when it hit $17, I was waiting for $8. Now I am not sure I am brave enough.

[2soon2tell]

When I was a broker in the early 90's some would ask If you could only own one stock which one would it be. My answer was always GE because of its diversified holdings and "perceived" excellent management.

My, how things have changed.

[bobandsherry]

Quote:

Originally Posted by 2soon2tell When I was a broker in the early 90's some would ask If you could only own one stock which one would it be. My answer was always GE because of its diversified holdings and "perceived" excellent management. My, how things have changed.

Illustrative as to why everyone should be diversified.