Has GE Bottomed???
In 2018, GE lost approximately another $86 billion in market cap. GE also lost its spot in the Dow in June after 122 years on the index.
GE has had some bad luck over the years with poor plays during the financial crisis and heavy investment in oil just before it tanked, but when it comes to health care and aviation, GE should still be able to shine. But because GE is still an enormous conglomerate in an era where conglomerates don’t have the benefits they once did, their other business such as oil & gas, transportation and capital may hold GE down.
But what goes down, must go up..right??? That's what two analyst on Wall Street think when they upgraded the stock last week.
Vertical Research’s Jeffrey Sprague, who has been ranked the top analyst in the Institutional Investor poll several times, upgraded GE to a buy rating from hold and raised his price target to $11 from $10, saying he sees “a path to create equity value.”
J.P. Morgan analyst and longtime GE bear Steve Tusa upgraded the struggling company’s stock, citing a more “balanced risk-reward” profile and an improved outlook on management’s ability to “execute its way through an elongated workout.” The upgrade took GE’s rating to “neutral” from “underperform” and ended a recommendation to short the stock.
The trend has always been my friend as I have had more success going with the trend, than against the trend.
So, I need more conviction that GE has bottomed although I'm see a potential sign of a bottom the daily chart.
But before considering going long, the conviction for me would be if price can pull back to the daily demand at $6.75, then take out the $8 level, the bottom in GE would be more convincing at that point.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
I think GE could go belly up and have to reorganize their debt which would take their equity to 0.
Yeah, their corporate bonds have gotten crashed, this is a high risk, low reward stock in my opinion.
I think they will ultimately need to spin off business to pay for its years of mistakes and loose accounting at the Capital business...
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Great comment, one spin off coming to the Markets is the healthcare segment.
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