GE (GE) shares reached a five plus year low today, at $28.38 as a JP Morgan analysts called for the company to sell off more units.
While GE has auctioned off some modest parts of its portfolio of companies, the core businesses are still relatively intact and the company’s board shows no interest in changing that.
GE already has a 4% or better yield, so adding to that may not draw in many new shareholders.
What GE could do is buy-back a third of its shares, about $100 billion worth. It has about 60% of that cash on its balance sheet. With $16 billion in operating income, it would not have not have much trouble borrowing the rest.
The GE board has run out of alternatives if it wants to defend its current state of affairs. If its view of the correct course for the future is to keep the company as it is, then it has the chance to demonstrate that buy eating its own cooking.
The shares are cheap now. The GE board would tell Wall St. that. It can also prove it.
Douglas A. McIntyre
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
