Over the years a "Dogs of the Dow" style of buying individual stocks has done well by me. I'm starting to sniff around GE. I'm tempted to hold off for the "we'll never do it" dividend cut. Any thoughts about at what price GE bottoms?
Over the years a "Dogs of the Dow" style of buying individual stocks has done well by me. I'm starting to sniff around GE. I'm tempted to hold off for the "we'll never do it" dividend cut. Any thoughts about at what price GE bottoms?
Date | PPS | Cost | G/L | Shares | |
5/5/2015 | $27.03 | $5,411.95 | -$798 | 200.000 | |
10/5/2017 | $24.38 | $2,446.95 | -$140 | 100.000 | |
10/11/2017 | $23.11 | $2,319.95 | -$13 | 100.000 |
Over the years a "Dogs of the Dow" style of buying individual stocks has done well by me. I'm starting to sniff around GE. I'm tempted to hold off for the "we'll never do it" dividend cut. Any thoughts about at what price GE bottoms?
At $31 billion, GE’s pension shortfall is the biggest among S&P 500 companies and 50 percent greater than any other corporation in the U.S. It’s a deficit that has swelled in recent years as Immelt spent more than $45 billion on share buybacks to win over Wall Street and pacify activists like Nelson Peltz.
And here I thought it was just my luck. I tired of the lack of progress and unloaded about a month ago, surprisingly it continued to drop rather than rachet back up after I moved out of it. Not hearing anything positive on GE, it's dead to me.call me. I have been riding it all the way down. As soon as I sell you should buy. That's my luck.
I own GE Capital Notes maturing in 2018 and 2022 with coupons of of 5.2% and 6.75% respectively. I bought these in 2009 and are rated AA- now versus AA+ when I initially bought them. I prefer buying bonds, notes, and preferred shares of companies verses common shares. Looking back since July 2000 until now, who's better off, the GE bond holders or the GE common stock holders. The answer should be obvious. That being said I would be a buyer for a trading rally in the $19.50-$20 range.
It would be interesting if I could find out how much in pension it pays out each year as the pension liability of 94 billion is only about $20,000 in cash value per pension holder. So that the average pension person is only getting $1,000 per year or 3-5 billion in payments per year? Would like to be able to see their total plan summary.
Maybe we have a GE employee/retiree that could share data from their annual pension summary report. In the meantime I found a site that lists $3.3B in payments in 2016 for 238,000 retirees, so that's about $14k per. This site has pension liability at 71B for 437,000 beneficiaries (including the folks not yet collecting, I think) so that's 152k per beneficiary for a lifetime of payments.
General Electric Has Taken These Steps to Ease Pension Burden - Market Realist
Yep - seems like a common US corporate strategy.their continuing efforts on the "Shrink GE Into Greatness" campaign
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....
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.