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Post Info TOPIC: More GE nooz...or snooze!
Uke


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More GE nooz...or snooze!
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So what's going on at General Electric, one of the original Dow Jones Industries from back in the 1800s when the stock market was formed. Now that GE has been booted from the Dow, what's next under Flannery?

Will they shed the 'transportation' division? Unlikely, becaue they'ere still selling big road power as usual. Besides, they couldn't find a buyer who wanted to build locomoteves, including Canada, or Mexico.

https://www.marketwatch.com/story/ge-to-spin-off-health-care-business-unload-baker-hughes-2018-06-26



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Uke


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Can it get any worse for GE? Probably. But we'll still be baffled by more, not less what the board decides what's best to save what's left after all the cuts to come. Will GE, one of the original and founding members of the Dow-Jones industrials last another year? Hard to say, but it can't continue this way...

 

The new GE still faces many old problems

 
 
Breaking down GE's breakup

1. Power problems: General Electric has embarked on a sweeping makeover aimed at returning the iconic company to greatness.

Wall Street loved GE's decision to break itself apart by getting rid of its health care, oil and gas and locomotive businesses. The beaten-down stock enjoyed its best day in three years as GE (GE) promised to simplify itself and clean up the debt-riddled balance sheet.

But these bold steps to further shrink GE's empire mean that the remaining company will be even more exposed to trouble in its biggest problem areas: power and banking.

Fresh evidence of GE's power problems will get revealed on Friday, when the recently ousted member of the Dow reports earnings. Expectations are low: GE has lost one-fifth of its value this year, on the heels of a crash of nearly 50% last year.

GE Power, which makes and services gas and steam turbines, has been crushed by the rapid rise of renewable energy. Orders and prices for fossil fuel equipment have plunged, forcing GE to lay off 12,000 workers.

Cowen & Co. analyst Gautam Khanna predicted that GE will disclose a 65% plunge in earnings from power. The company's renewable energy division, which isn't being sold off, is too small to make a dent in the overall bottom line.

"Power remains challenged (to put it mildly), with little hope of a near-term recovery," Deutsche Bank analyst Nicole DeBlase wrote to clients last week.

Related: Meet the new GE: It's a shell of its former self

That's a problem because GE Power isn't going anywhere. It'll remain the largest division by revenue after GE completes its transformation. And troubles at GE Power will no longer be masked by strength from one of the company's crown jewels: the health care juggernaut that is being spun off.

"GE's recently announced break-up places a ceiling on the stock until the power segment's turnaround effort gains more traction," Khanna wrote.

The bright spot at GE is undoubtedly its soaring aviation business, which makes and services jet engines. Sales are expected to rise, driven by strong orders for GE's LEAP engine.

The biggest mystery surrounds GE Capital, the financial arm that nearly destroyed the company a decade ago.

GE Capital shocked Wall Street in January by disclosing a $6.2 billion loss in the long-term care insurance business. The news caught regulators off guard as well, prompting an SEC investigation. Now Flannery is trying to get rid of the troubled insurance portfolio as well.

GE could also offer more details about the federal investigation into WMC, its subprime mortgage unit. GE has set aside $1.5 billion to cover potential losses and it recently warned it could put WMC into bankruptcy.

Will more shoes drop at GE?

 



-- Edited by Uke on Sunday 15th of July 2018 03:28:06 PM

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The Forum Celestial Advisor

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My only complaint is the newer GE locomotives "don't make enough noise". Its really
hard to tell they are in 8th notch by the noise. No "throbbing" sounds.

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Force Majeure

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And, soon! The newest GE locomotives won't be GE locomotives.

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wes


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Sad sad--Apprentice tng at GE loco div saved me from a life of stealing hub caps.

Excuse my typing--just had cataract surgery.

Short range planning will always show up over time.

Don't know about l t care, but making bad loans will kill you.

Want to write more, but am seeing double

 

best,  Wes---------------out

 



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Unstable & Irrational

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Nice to hear from you wes...

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wes


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Great to see today.

GE leasing engines---IBM made a fortune

leasing big blue computers??????????

wes----------------out

 



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Force Majeure

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wes wrote:

Great to see today.

 


 Great tu hear you see today, wes.



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