There's no doubt General Electric has been in trouble for a very long time. Even if you don't know the story behind the fall, one look at the price chart and it's obvious. It hit a high of $31.66 in the summer of 2016 and has fallen ever since. I can't imagine any shareholder that's happy.
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.
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.
General Electric Company operates as an infrastructure and technology company worldwide. Its Power segment offers gas and steam power systems; maintenance, service, and upgrade solutions; distributed power gas engines; water treatment, wastewater treatment, and process system solutions; and nuclear reactors, fuels, and support services. The company's Renewable Energy segment provides wind turbine platforms, and hardware and software; onshore and offshore wind turbines; and solutions, products, and services to hydropower industry. Its Oil & Gas segment offers surface and subsea drilling and production systems, and equipment for floating production platforms; and compressors, turbines, turboexpanders, reactors, industrial power generation, and auxiliary equipment. The company's Aviation segment designs and produces commercial and military aircraft engines, integrated digital components, and electric power and mechanical aircraft systems; and provides aftermarket services. Its Healthcare segment offers diagnostic imaging and clinical systems; products for drug discovery, biopharmaceutical manufacturing, and cellular technologies; and medical technologies, software, analytics, cloud solutions, and implementation services. The company's Transportation segment provides freight and passenger locomotives, and rail and support advisory services; and parts, integrated software solutions and data analytics, software-enabled solutions, mining equipment and services, and marine diesel and stationary power diesel engines and motors, as well as overhaul, repair and upgrade, and wreck repair services. Its Energy Connections & Lighting segment offers industrial, grid, power conversion, automation and control, lighting, and current solutions. The company's Capital segment provides industrial and energy financial services; and commercial aircraft leasing, financing, and consulting services. General Electric Company was founded in 1892 and is based in Boston, Massachusetts.
(Summary) (Company) (Chart)
(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% |
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