Has GE Bottomed??? - Part 2
Three weeks ago, I wrote about GE because I was starting to see articles questioning whether GE had bottomed.
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.
GE not only came back to retest the daily demand at $6.75, but closed above the $8 level.
Now the same analyst who upgraded the stock, when it was in the $6 range citing a more citing a more “balanced risk-reward” profile and an improved outlook on management’s ability to “execute its way through an elongated workout” is covering his basis now.
Tusa said in his note that "if we don't get much tangible, it will reinforce the Bear case that there is no concrete silver bullet plan." Tusa maintained a neutral rating on General Electric with a price target of $6. Noting the company's "myriad of moving parts," Tusa said uncertainty comes from questions about the financial future of the company as well as the scope of GE's persisting issues.
Well, one trader thinks GE is going higher. On Monday, an options trader is betting that GE will be back above $10 per share by 2020. The trader bought 11,000 January 2020 expiration 10-calls for $1.23 per contract or a $1.35 million bet. In order for this trader to be handsomely rewarded, GE would have to get to $11.23 by expiration.
The next levels to watch GE are the daily supply at $10 and $11.50.
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.
https://magic-dice.com/?ref=kimsungtee
Thank you
The debt burden is too high for the spin off of the Capital arm and will also hurt the aviation division given the financial support. I don’t think a year of restructuring will be enough to support a double in valution especially when the market will not be there to pull them up either.
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