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10-20-2017, 08:55 AM
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#21
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
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Thirty years ago.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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10-22-2017, 06:54 AM
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#22
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Thinks s/he gets paid by the post
Join Date: May 2014
Location: Utrecht
Posts: 2,650
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Returns on capital below 10%, haven't corrected on the dividend and priced at almost a 30 P/E ratio, what's not to like 
My impression of GE is that after they nearly blew themselves up being a bank (2009), they still need to reestablish themselves as great builders and engineers.
Would only be interested for a closer look if they dropped another 30% in price, and even then I'd be a bit apprehensive for the longer term.
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10-22-2017, 10:12 AM
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#23
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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 Quote:
Originally Posted by Running_Man
their continuing efforts on the "Shrink GE Into Greatness" campaign
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Yep - seems like a common US corporate strategy.
Did they announce a stock buyback yet?
Oh, I guess they were already buying back stock before this nasty news came out to hammer their stock price.
__________________
Retired since summer 1999.
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10-22-2017, 12:43 PM
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#24
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Full time employment: Posting here.
Join Date: Jul 2013
Posts: 953
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Quote:
Originally Posted by Running_Man
And GE announced this morning profits much lower than expected and they are taking a 16 cent per share charge as their continuing efforts on the "Shrink GE Into Greatness" campaign, ---my name for their disjointed, misguided and futile efforts to make the stock market price go up through Corporate Boardroom soundbite moves that look like proper executive actions for your 5 minutes on CNBC while you explain them, which is how GE is managed. It is like an elephant trying to pretend they are a gazelle, saying don't make it so....
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Quote:
Originally Posted by Clone
A couple of those folks were the make lots of money while destroying your future product kind of guys...
Nothing wrong with making lots of money, but there needs to be some focus beyond the end of the quarter.
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It is perhaps poor form to quote yourself as a reference...
We used to call this form of management Shrinking yourself into Incredible Profitability.
I think a whole bunch of these CEOs and Board of Director folks were fraternity brothers at the same MBA school. MegaCorp went through a phase of fiscal tightening where we would tear down relatively new buildings to get them off the assets sheet, thus improving our return on assets ratio. The criteria for capital investment required a 12 month pay back on investment. We were outsourcing a lot of production at a higher unit cost (because we could not buy new capital equipment).
Short term, it curtailed a lot of wasteful spending, and the company improved it's profitability. Long term, our production costs went up and some of our customers went away. It took many years to recover from this philosophy.
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10-22-2017, 01:12 PM
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#25
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,731
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Will someone please announce when it will be the right time to buy GE again? 
__________________
*********Go Yankees!*********
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10-22-2017, 03:45 PM
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#26
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Full time employment: Posting here.
Join Date: Jul 2013
Posts: 953
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2 days after the new MBA fratboys cut the dividend.
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10-22-2017, 04:15 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,985
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After the Jack Welch financial games it would take some selling to get me to buy.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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10-23-2017, 11:59 AM
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#28
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 2,844
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As a business with 7 Billion in Cash Flow and 8.8 Billion shares and their Pension issues to arrive at a value higher than 15-18 dollars per share would require a very optimistic view of prospects for GE, I think at 15-18 it would be fairly valued. Because of it's long term reputation it trades higher but it will trend to 15-18 if nothing changes in the next 12-18 months
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10-24-2017, 07:50 AM
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#29
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 233
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Saw this article a couple days ago. What a dog!
"Since former CEO Jeff Immelt took the helm in September 2001, the stock is down more than 40 percent and has posted a negative return even after reinvesting its juicy dividends."
http://www.reuters.com/article/us-ge-results/ge-vows-20-billion-asset-sales-sweeping-change-as-profit-falls-idUSKBN1CP1AO?il=0
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10-24-2017, 07:58 AM
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#30
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Recycles dryer sheets
Join Date: Jul 2012
Posts: 287
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I am a buyer at $8 which won't be for another 4 weeks.
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10-25-2017, 09:11 AM
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#31
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Full time employment: Posting here.
Join Date: Oct 2016
Location: Pinetops
Posts: 521
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Quote:
Originally Posted by Shanky
I am a buyer at $8 which won't be for another 4 weeks.
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Down to $21.50 this morning. Only 13 1/2 points to go. I like the OVER on this one. 
Michael
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10-25-2017, 09:17 AM
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#32
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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Quote:
Originally Posted by Shanky
I am a buyer at $8 which won't be for another 4 weeks.
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My basis in the share of GE I own is about $8.50. It's been painful to watch it drop. Have been holding on as not to create a sizable tax event for this year.
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10-25-2017, 09:31 AM
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#33
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Thinks s/he gets paid by the post
Join Date: Nov 2015
Posts: 2,692
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Quote:
Originally Posted by RE2Boys
My basis in the share of GE I own is about $8.50. It's been painful to watch it drop. Have been holding on as not to create a sizable tax event for this year.
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Avoiding taxes is not a good reason to hold a stock. Based on price of $28, at $21.50 today you've already taken a $7.50 (23%) haircut on the price. Conversely, if you would have sold at $28 you would have had a gain of $19.50 a share and taxes at 25% would have been about $5/share.
And it doesn't have to be an all or nothing, could have sold a portion of the holdings.
After holding this pig for 3 years I finally sold it off myself several months ago. Got tired to watching the falling knife on this.
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10-25-2017, 10:41 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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Quote:
Originally Posted by bobandsherry
And it doesn't have to be an all or nothing, could have sold a portion of the holdings.
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Actually sold of 20% of my holdings around Labor DAy
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10-25-2017, 11:26 AM
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#35
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Quote:
Originally Posted by harley
Thirty years ago.
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Right. That’s exactly what my in laws did. Cost basis about $6. Better question might be “when to sell”?
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10-25-2017, 05:00 PM
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#36
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Thinks s/he gets paid by the post
Join Date: Sep 2012
Posts: 1,570
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Buy it just before it starts going up more than the rest of the market.
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10-25-2017, 08:28 PM
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#37
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Another company that did a lot of stock buybacks back when the price was higher!
Cash flow problems - I bet they wish that hadn't blown all that cash on buybacks!
Quote:
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In the first half of 2017, General Electric (GE) paid dividends of $4.2 billion and bought back common stock worth $3.6 billion. Despite the sharp fall in GE’s price, the company repurchased equity shares worth $1.3 billion in the second quarter. It was much less than the $2.3 billion buyback in the first quarter of 2017.
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http://marketrealist.com/2017/09/gen...lders-in-2017/
__________________
Retired since summer 1999.
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10-25-2017, 10:13 PM
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#38
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
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Quote:
Originally Posted by Danmar
Right. That’s exactly what my in laws did. Cost basis about $6. Better question might be “when to sell”?
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I'm pretty sure that over this time period counting my dividends my cost basis has to be below $0. Not sure how to calculate it though.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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10-26-2017, 07:45 PM
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#39
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,544
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Finally dumped my GE today. Not much. Only 80 shares. Needed the loss to balance the gains for the year. I will leave it on my "watch" list. It was about 1% of my "play" account.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
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10-26-2017, 08:19 PM
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#40
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Based on the earnings conference call and forecast for the next quarter, I would expect some support at $15.50-$16. I previously was looking at the $19.50-$20 range for a trading buy. With tax loss season upon us, don't be surprised to see the $19.50 range over the next few weeks. I'm maintaining my position on my notes that mature in 2018 and 2022. Ironically even GEB, GEH and GEK with their relatively low coupons have been a better investment over the last 4 years than GE common stock.
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