General Electric Chair! (GE)

General Electric Company (NYSE:GE) is about to undergo what you might call ‘shock therapy’.

All the more so if you’re a bull on the stock.

Yes, even though she’s in the midst of a tripartite breakup that will leave the ticker (GE) in possession of just the company’s aviation business, stockholders should expect a crash landing for the shares in the very near future.

Fundamentals

The company’s numbers make little sense.

After running up better than 90% (!) in just the last four months, GE valuations are outright shocking.

• P/E is 154.34 (expected to shrink to just 23.92 in a year—not a great vote of confidence).
• Dividend Yield has shrunk to a wan 0.39%.
• Price to Book is 2.86.
• EPS for the year were DOWN by 159.20%,
• For the past five years were DOWN 19.90% per annum, and…
• In the latest Q/Q, were DOWN by 125.60%.

So what gives?

Essentially, this is a story of a hyper-enthusiastic response to GE’s spinoff plans; one that got carried away like an old-time aviator—who forgets to check the fuel gauge.

WHOOPS!

The company announced quarterly results two weeks ago (January 24^th) and the stock has been in a stall ever since.

Check out the chart—

Belief is reserved for הקדוש ברוך הוא.

Blessed be His Glorious name for ever and ever.

Many happy returns!

Matt McAbby

Follow @HughLOHaynew