Jack Welch has said “My definition of a manager is someone who can change the tires of a car while it is still moving.”
GE shares stumble to worst week since financial crisis
- Thread starter learner88
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Jack Welch has said “My definition of a manager is someone who can change the tires of a car while it is still moving.”
The only practical question that matters here is when are you backing up the truck? $16? $15? Can it go to $10 or lower?
Personally, I would allocate a specific percentage of my investable assets to the trade. Then I would further divide that amount and invest in GE as certain milestones are met.
These milestones would include particularly bad, but not fatal, news on the company, favorable management change, several big contract awards, a new technology or process, or favorable technical performance as measured by relative strength and trend analysis.
GE can benefit greatly from advances in robotics and AI and will be able to use these technologies extensively in several of their divisions.
There is no law that says GE can’t go back to six, as it did in the Great Recession, or worse.
These turnaround stories can take a long time. Should GE right their ship before the next recession, the stock may provide a significantly better than average return.
These milestones would include particularly bad, but not fatal, news on the company, favorable management change, several big contract awards, a new technology or process, or favorable technical performance as measured by relative strength and trend analysis.
GE can benefit greatly from advances in robotics and AI and will be able to use these technologies extensively in several of their divisions.
There is no law that says GE can’t go back to six, as it did in the Great Recession, or worse.
These turnaround stories can take a long time. Should GE right their ship before the next recession, the stock may provide a significantly better than average return.
Jack is legendary, great builder of business and company. He only made one management mistake in his long career: He picked Jeff to succeed him.
Yeah there are no rules on how low or high a stock can fall, but this fell under $5 because there were real fears of BK risk at the time due to liabilities stemming from GE Capital during the financial crisis. Those conditions don't exist today. There is no BK risk here as this thing still has free cash flow, despite significant revision to the guidance. So it's possible a bottom will be above where GE hit during the financial crisis.
Dogs is usually the top 10 yielding...Is GE there ?
Also, I think you have to be careful in assuming what GE will be in the future. This could very easily be spun/broken into 3 or 4 pieces.
Kind of ironic that the jettison of GECC, that management thought was so brillant started this whole S. show.
Trump is talking infrastructure, transportation is looking strong, and tax breaks and regulatory environment should encourage businesses to expand.
GE should be a huge beneficiary of the utilization of technology such as AI and advanced robotics. These technologies can reduce GE’s costs of production and unveil new opportunities.
Many of the ingredients are there. The wildcard appears to be management. A competent management is what GE needs to be able to effectively take advantage of the opportunities out there. I still need to do my homework to get a feel if they will be the key factor in GE’s turnaround.
However, probable trade friction from Trump’s America First doctrine and long term U.S. demographic trends are concerns and should be watched.
As for myself, I’m not limited in specific time, price, or specific amount to invest in GE. As mentioned in a prior post, my plan is to build size based on certain fundamental and technical milestones being met.
As for GE being there, as in today? Who knows? Do you have the feeling of cautious optimism concerning GE’s outlook? Technically, GE is a disaster in both relative and absolute performance. We are not in an “uptrend and buy the corrections” type of situation, yet. We don’t know how low GE will go or the urgency that institutions have in unloading this underperforming stock from their portfolios.