Today the CEO is gone and there's been a management shake up. Talk now is of a dividend cut. All that's bad news for current shareholders but it's great news for those on the sidelines with cash. All an investor has to do now is wait for the bottom and it's got to be near. Management insists they'll maintain the dividend but all managements say that just before the cut the dividend. And it most likely will happen with GE.
Looking at the numbers below, the revenues are starting to improve and earnings are starting to move higher for the first time in awhile. Those are both great signs but controlling the growth of dividends recently has helped the earnings turnaround. A dividend cut would help even more. With a forward P/E of under 14 and improving earnings, this company could quite easily hit its estimate of $28.00 next year for a nice return. But more importantly it could be the beginning of an extended move higher.
I certainly expect this to occur so I'm just waiting for that great moment to buy. I think the dividend cut will be the last shoe to fall and it's what I'm waiting for. It should be accompanied by an exhaustion pullback or capitulation and that will be the signal to begin accumulating shares.
(Summary) (Company) (Chart)
15 October 2017 Price $22.98 1yr Target $28.00 Analysts 15 Dividend $0.96 Payout Ratio 110.34% 1yr Cap Gain 21.84% Yield 4.17% 1yr Tot Return 26.01% P/E 26.35 PEG 2.83 Beta 1.16 | EPS (ttm) $0.87 EPS next yr $1.66 Forward P/E 13.87 EPS next 5yr 9.32% 1yr Price Support $15.47 Market Cap $199.26 Bil Revenues $119.57 Bil Earnings $7.77 Bil Profit Margin 6.49% Quick Ratio --- Current Ratio --- Debt/Equity 1.81 | 1yr RevGR 5.37% 3yr RevGR 2.95% 5yr RevGR -3.34% 1yr EarnGR --- 3yr EarnGR -11.08% 5yr EarnGR -6.27% 1yr DivGR 1.08% 3yr DivGR 5.53% 5yr DivGR 8.80% ROA 2.00% ROE 9.50% |