General Electric

03 Oct

GE just hired a rock star CEO. Is it time to call them a good value play?

The market was buzzing at the beginning of the week when General Electric Company’s (GE) board announced they were firing the CEO they brought in just a little over a year ago, John Flannery, and replacing him with Larry Culp, the 54-year old former CEO of Danaher Corporation (DHR). The news pushed the stock up overnight in a big way, as it opened Monday morning nearly 16% above its closing price on Friday. More →

By Thomas Moore General Electric Investiv Daily Risk Value Investing Value Traps
07 Feb
Thinking About Investing In GE? Read This First
I’ll give a simple overview of what investing in GE means now, what the risks and rewards are.

Depending on what your required returns are, GE might be an attractive investment.

However, a lot of bad things can still happen.

Introduction

General Electric (NYSE: GE) was one of the worst performing stocks in 2017 and the situation hasn’t changed in 2018. More →
By Sven Carlin General Electric Investing Strategy Investiv Daily
26 Oct
Buybacks Destroy Blue Chip Stocks, GE Is A Prime Example
GE spent more than $21 billion on buybacks in 2016. The stock price is now down more than 30%, thus that $21 billion was thrown away.

Other S&P 500 companies aren’t much better and their time to reckon with financial engineering will come too.

The more buybacks a company does, the lower the market cap will be in 5-years, which is something managers don’t want to know.

Introduction

In December 2016, I wrote an article titled Is Your Value Being Destroyed? where I discussed how buybacks are destroying long term shareholder value.

My favorite example from that article was General Electric (NYSE: GE) because it seemed completely illogical to me that a company would sell valuable assets in order to increase buyback activity because this isn’t how you operate a business, this is pure short term financial engineering. More →
By Sven Carlin Buybacks General Electric Investiv Daily
04 Aug
Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise
The strongest companies in the S&P 500 may look invincible now, but history shows us this won’t last forever.

None of the companies in the S&P 500’s 1980 top 10 are still there now.

Top 10 S&P 500 companies largely underperform the S&P 500 in the long term.

Introduction

Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Johnson & Johnson (NYSE: JNJ) are the 5 largest holdings of the S&P 500 accounting for 11.74% of the index. The other 495 companies account for 88.26% of the S&P 500 which is a pretty strong imbalance, but that’s how the S&P 500 is formed. Its weightings are based on market capitalization. The bigger the market capitalization, the bigger the weighting in the index. More →
By Sven Carlin Amazon Apple AT&T General Electric Investing Strategy Investiv Daily S&P 500 Stocks
29 Jul
Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You
Corporate earnings and fundamentals are variable, pick the stocks that best suit you.

There are low PE ratio stocks, high growth stocks, and high dividend yielders – anything you might want.

But be aware: some companies engage in buybacks that are detrimental to shareholders’ value.

Introduction

When you add up the top ten companies by weight, they account for 17.7% of the total weight of the S&P 500. For investors who are heavily invested in the S&P 500, following the earnings of its top ten companies is essential in order to understand the risks and rewards of being invested in the index. In this article we are going to assess the current market situation by looking at what has been going on with the 10 biggest companies in the S&P 500 index. More →
By Sven Carlin Amazon Apple AT&T Berkshire Hathaway Corporate Earnings Exxon Mobil Facebook General Electric Investiv Daily Johnson & Johnson JP Morgan Chase Microsoft S&P 500 Stocks