GE An $ 8 stock by December?

[Lakewood90712]

Sure is looking like another dividend cut.

 

[Running_Man]

With what is known it is worth 10-12 dollars, however in recent days the 9 billion of the 15 billion they said they would take for insurance portfolio shortfall is billions short. If that is billions short then the dividend would have to be eliminated and it would be a long rebuilding process. Anyone that is holding for dividend would probably sell.

 

[footenote]

As a GE vet from the glory days, I find this story so sad. Many long-term employees could never have imagined this happening and invested in GE stock for their retirements.

 

[aja8888]

Sure is looking like another dividend cut.

Could be, it will depend on what the new CEO thinks is right to save the business, or at least get it back to the good old days.

 

[bobandsherry]

Earnings out, div cut today to 1 cent - like why bother as they now pay the administration costs to process all those div payouts, continued restructuring underway. Nothing surprising and market digesting the info but already pushed stock below $11 currently. Def not making those who are retired and have held their stock through the drops for the div happy as they just took a huge haircut in their income stream.

 

[target2019]

4 cent a year.
1,000 shares will get you $40 in 2019.

 

[gcgang]

GE is moving toward a hat size. I'm a 7 5/8. That's where I'm buying it. Either that, or just a new hat.

 

[ExFlyBoy5]

GE is moving toward a hat size. I'm a 7 5/8. That's where I'm buying it. Either that, or just a new hat.

I'd recommend the hat. At least then you might get a buck for it when you sell it at a yard sale in 20 years and might get more than if you buy GE.

 

[aja8888]

The GE story is starting to sound like a restructuring and cost cutting adventure to line it up for a possible asset sale at a later date.

 

[Texas Proud]

Earnings out, div cut today to 1 cent - like why bother as they now pay the administration costs to process all those div payouts, continued restructuring underway. Nothing surprising and market digesting the info but already pushed stock below $11 currently. Def not making those who are retired and have held their stock through the drops for the div happy as they just took a huge haircut in their income stream.

Probably very few checks actually go out... most are electronic payments and there really are no extra charges to GE...

 

[ERD50]

Probably very few checks actually go out... most are electronic payments and there really are no extra charges to GE...

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

 

[bobandsherry]

Probably very few checks actually go out... most are electronic payments and there really are no extra charges to GE...

I didn't say checks, I said "pay the administration costs to process all those div payouts". Even electronically there's a cost to process all those payments along with time for people to handle calls for missing payments, reconciliation, escheatment, etc. Nothing in life is free, especially with the large number of shareholders that GE has.

 

[NW-Bound]

I am not a biz whiz to understand it, but GE annual gross sales is still something like $120B, while Boeing's sales is around $90B. Both are in similar established areas of business, yet Boeing manages to make some profits, while GE struggles.

GE past management had to be very poor to allow this decline to happen. I am always sad to see a company with a proud history fallen so low. I still hope they can turn it around.

 

[bobandsherry]

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.

 

[bobandsherry]

I am not a biz whiz to understand it, but GE annual gross sales is still something like $120B, while Boeing's sales is around $90B. Both are in similar established areas of business, yet Boeing manages to make some profits, while GE struggles.

GE past management had to be very poor to allow this decline to happen. I am always sad to see a company with a proud history fallen so low. I still hope they can turn it around.

It's not what you make, it's all about the margins.

GE = $35 gross profit - $41 operating expenses = LOSS
BA = $14 gross profit - $7 operating expense = WIN

Totally different business with a much different structure. GE has hands in many pots, BA is mostly pretty focused. Just looked, SGA for GE = $17, BA = $4. Shows how different the structure of companies are.

 

[NW-Bound]

I know GE got into finance and insurance, but what about their core businesses such as GE jet and turbine engines, locomotives, etc...? How well are these doing, and if not, why not?

 

[bobandsherry]

I know GE got into finance and insurance, but what about their core businesses such as GE jet and turbine engines, locomotives, etc...? How well are these doing, and if not, why not?

Haven't dug into their recent financials as I have no skin in that game, unloaded them quite some time ago when they were trading around $30. Saw the writing on the wall and just unloaded the pig, haven't looked back except to see I made a good call (gotta get lucky every once in a while). But can't pick and choose what is or isn't good business, unless GE decides to split up, which could be the right answer as the parts may be worth more than the whole.

 

[Lakewood90712]

I know GE got into finance and insurance, but what about their core businesses such as GE jet and turbine engines, locomotives, etc...? How well are these doing, and if not, why not?

Jet engines doing great , locos good, power systems, a real disaster . the finance and insurance businesses are trying to sink the ship. The anchor chain cannot be cut at this time.Legacy of decades of picking low hanging fruit, borrowing from the future . The future is here and the bank vault is bare.

The SEC and DOJ are knee deep in the co books. Will not make any diff. Where was the board during the last 20 years, sleeping?

Disclosure, a relative has a small fortune in GE , used to be a large fortune. She would not sell, "Oh, The Dividend is So Good " She also rode the old GM down to 0 for the reason.

 

[bobandsherry]

Disclosure, a relative has a small fortune in GE , used to be a large fortune. She would not sell, "Oh, The Dividend is So Good " She also rode the old GM down to 0 for the reason.

The healthy dividend is what kept people shackled to GE. They just had been blindsided by being shareholder for decades and refused to accept the reality, any company in crisis has to cut their dividend if they hope to dig their way out.

The reality is those who made the mess of GE ended up with making a fortune, those who relied on GE as shareholder and retired counting on that dividend got screwed and hurt financially.

 

[Texas Proud]

I didn't say checks, I said "pay the administration costs to process all those div payouts". Even electronically there's a cost to process all those payments along with time for people to handle calls for missing payments, reconciliation, escheatment, etc. Nothing in life is free, especially with the large number of shareholders that GE has.

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/national/ge-slashes-119-year-old-dividend-to-a-penny

 

[MI-Roger]

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]

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/national/ge-slashes-119-year-old-dividend-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]

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".