GE Is Crashing... Again

Tyler Durden's picture

After Friday's farcical face-ripping ramp back to recent highs (from a 10% plunge pre-market) after dismal earnings and outlook, it appears 'investors' took the weekend to actually read the report and transcripts...

Someone turn the bloody machines back on!!

Bloomberg reports that General Electric’s weak third-quarter results and outlook prompted multiple rating downgrades on Monday, with most analysts warning of an impending dividend cut. However, bullish analysts note that there doesn’t seem to be much more that bears can "fixate on from here."

RBC (Deane Dray)

  • GE’s intra-day stock recovery on Oct. 20 could be the "first sign of a cathartic bottoming, supported by the draconian 2017 guidance cut and brutal assessment/frankness from the new CEO"
  • Expects a dividend cut announcement before Nov. 13
  • Outperform, PT $25 from $27


  • Investors need to trade carefully into Nov. 13 strategy reset, given higher probability of a dividend cut to ~70c
  • While new CEO John Flannery is the right man for the mission on hand, the scale of the challenges that he and his new team face are greater than earlier imagined
  • Cut to underweight from equal-weight, PT $22 from $25

UBS (Christopher Belfiore)

  • Downgrades on disappointing 3Q, expectation reset and dividend at risk
  • Says recognizes execution risk as GE works through its strategy, but sees a lot of the negative sentiment now in the stock; says GE should trade in line with the market
  • Cut to neutral from buy, PT $24 from $31

COWEN (Gautam Khanna)

  • Sees a likely, sizable dividend cut and down 2018 EPS, with limited bounceback prospects in 2019
  • Says it is very likely that Power profits will decline sharply in 2018, and perhaps again in 2019
  • Market perform, PT $22 from $24


  • "Not sure there is much more the bears can fixate on from here"
  • Says the EPS reset was worse than what most expected; however, short of a recession or collapse in oil prices, it is hard to picture anything more
  • Says the dividend won’t be cut as GE will focus on growing FCF and earning into it
  • Buy-Accumulate; PT $35

WILLIAM BLAIR (Nicholas Heymann)

  • Says GE puts its corporate transformation into overdrive; 2017, and not 2018, is now going to be GE’s trough year for adjusted EPS, with solid initial improvement expected in 2018
  • Outperform

SUNTRUST (Michael Ciarmoli)

  • GE’s notable strength in military aftermarket activity could be a source of upside surprise this quarter for suppliers with exposure
  • Names with aftermarket exposure within SunTrust’s coverage include AAR, Barnes Group, HEICO, KLX and TransDigm

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FreeShitter's picture

"GE, we bring dead cats to life"

Arnold's picture

Pretty even volume on the .BTFD.
It's nice when things have a happy ending.

CheapBastard's picture

Obongo's "Job Czar" Immelt shipping 25,000 GE jobs within 6 months of his appointment.

Soweeto bin Bama destroyed more jobs then the four presidents before him created!

Lumberjack's picture

GE Decides to Dump Offshore Wind-Power Plans Despite Collecting Millions in Stimulus Funds for Wind Projects

MasterControl's picture

Government Electric needs to go.

_RRR_'s picture

no, they will ramp it again after 50% of the first ramp is "corrected"

hangemhigh77's picture

GE, purveyors of disease and pestilence throughout the world. God Bless America.

totenkopf88's picture

Trump restarting the Iran sanctions means GE will have to go through the hassle of selling to them through their shell companies.

Squid Viscous's picture

quick, put that senile old fuck Jack Welch on CNBS, maybe thatwill help

newmacroman's picture

Proposal for ZH management, a "Hall of Fame " quotes.

I can't remember who did the "Print until their eyes bleed" but that should be #1.

A close second was No Debt's Ice Cap commentary that I was smart enough to copy.

Oh, I'd be happy to short-cut it for you:

1.  Shit's all fucked up.  You know it, I know it, everyone knows it.

2.  We're about 8 exits past "way too late" to fix it in some non-explosive manner.

3.  Stopping now would just make it expode immediately.

4.  Not stopping now will guarantee it will explode much more catastrophically later.

5.  Since it's going to explode either way, the only rational course of action is to choose the "explode later" option.

6.  Nobody knows how much longer this can go on before it explodes so you might as well enjoy it while it lasts because when it expolodes it will be the "widowmaker".  And everyone knows it.


The "Widowmaker" market should be trademarked.

Cheers, macroman, unabashedly showing his man crush affinity for nail guns.

newmacroman's picture

FreeShitter, your "GE, we bring dead cats back to life" below was LOL funny, just not quite HOF worthy.

Hounarible Mention for quick wit.

lasvegaspersona's picture

No Debt gets my vote for being consistently the best ZH commentator. Usually thoughtful and 'mature' (doesn't have to resort tothe usual inflamatory tactics) and always a touch of humor. I'd buy him a drink but fortunately I have no idea who he is.

pickatheweek's picture

I haven't seen anyone post the correct name of this POS recently so here goes:: Government Electric

Eat my shorts

hotrod's picture

Maybe Amazon can buy it

Arnold's picture

Just drop ship a T 901 off a Black Hawk at the front door.

Codwell's picture

Hey Yellen, here comes your 19th nervous breakdown. 

Solio's picture

Thanks for the melty reactors.

Rebelrebel7's picture

Let it crash, along with all defense stocks! 

Don't reward murderers, psychopaths, and sadists!

If they are too stupid to develop a product that people are willing to buy, they are too stupid to have people buy their stock, and too stupid to exist as a corporation! 

Last of the Middle Class's picture

Nothing like irradiating your own political base like the did with their poor reactor design to California or taking two private jets somewhere with one as a back up in case one breaks down, when the company you are CEO of manufactures jet engines. Not good, Not good.

wisebastard's picture

i bet i could tell you the names of people rigging GE but nothing will get done because the system is so corrupt...

Bam_Man's picture

GE stock is down 30% in the past year, when the rest of the Dow is up 30%+

That's got to hurt....

StinkyLebinowitz's picture

People are going to look back at today's s/p and wonder "why didn't I dump this dog when I could have gotten $22 for it?" I expect that to be happening well bfore Christmas. The REAL P/T - $12-15. 

caldreaming's picture

 I hope the people at Harvard Business School produce a "what went wrong" case study of GE.  It is an amazing story of how one stupid CEO wrecked a company. When  the CEO decided to get into the oil business recently I was ROTFLMAO.  His timing was superb, just like all his other decisions.  Too bad for shareholders.  They should sue the directors for keeping this incompetent guy on so long.

hotrod's picture

February 22 2011.  Before the oil/commodity crash.

John Krenicki, CEO of GE's energy division had this to say: "Five years ago, our revenues from oil and gas drilling and production equipment were zero. Now, out of nowhere, we are a force to be reckoned with."

Anonymous IX's picture

Oh, god.  Do we have to bail them out again?