Monday, November 13, 2017

We Just Saw The Low Point In General Electric's Relative Performance (GE)

Nineteen bucks. Today's bottom tick and a level the stock first hit back in March 1997.
The stock may trade lower should the overall market get whacked but compared to the Dow or the S&P the wealth destruction from owning GE should be no worse than the averages.

We have a few hundred posts on Mr. Edison's creation . Here are two not-quite-random samples:

June 12 2017
General Electric Changes a Dim Bulb (GE) 

Longtime readers know we have zero respect for Immelt and little interest in GE, despite their being involved in multiple lines of business covered on Climateer Investing.
Maybe that will change going forward.

From MoneyBeat:

Under Immelt, GE Was the Worst Performer in the Dow

by Erik Holm 11:54 am
General Electric shareholders endured a rough ride during Jeff Immelt‘s tenure atop the firm.
Shares of the massive company are down about 30% since he took the reins from legendary GE Chairman Jack Welch in 2001.

That’s by far the worst performance among the current companies in the Dow Jones Industrial Average. Pfizer, down 11%, is the only other stock among those 30 companies that’s in the red in that span, and 21 of the remaining 28 have at least doubled over those 16 years.

As a whole, the Dow is up 121% from Sept. 7, 2001, Mr. Immelt’s first day on the job, to Friday’s close.....
November 1, 2017
"JPM: GE Could Cut Dividend Within Two Weeks" 

And today's story from Reuters:

GE slashes quarterly dividend ahead of expected restructuring
General Electric Co chopped its quarterly dividend in half on Monday, new Chief Executive John Flannery’s first move in an overhaul of the conglomerate he is due to announce later in the day. 

GE cut the dividend to 12 cents per share from 24 cents starting in December, which is expected to save the company about $4 billion in cash annually. 

Its shares were up 0.7 percent at $20.64 in premarket trading. The stock is the worst performing Dow component this year, down 35 percent through Friday's close.(For a graphic on the top five dividend yields in the Dow 30 click

Flannery plans to focus on three of GE’s biggest business lines - aviation, power and healthcare - the Wall Street Journal reported earlier on Monday, citing a person familiar with the matter. 

Investors gathering in New York to hear Flannery’s presentation told Reuters that GE’s plan as outlined so far was largely as expected, but left open the question of how the company will generate the cash flow that it has failed to deliver in recent years....MUCH MORE
$19.74 down 0.75 last.
DJIA  23,421.38 -0.83 (0.00%)
S&P 2,580.72-1.58(-0.06%)