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
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.