GE Is Crashing

Tyler Durden's picture

The pre-market buyers of last resort, hoping that GE just kitchen-sinked by slashing its dividend by 50%... are in trouble.

Everything was fine until CEO Flannery started speaking...

  • *GE TO BORROW $6 BILLION FOR PENSION CONTRIBUTION, CEO SAYS
  • *GE CEO: ALSTOM ACQUISITION PERFORMING BELOW EXPECTATIONS
  • *GE CEO: GE POWER EXACERBATED ITS PROBLEMS W/POOR EXECUTION
  • *GE CEO SEES `LIMITED' M&A IN THE NEAR TERM
  • *GE CEO: NEW, SIMPLER EARNINGS METRICS TO FOCUS ON CASH

The company also announced that it expects adjusted earnings of $1.00 to $1.11 per share for 2018, which was lower than Wall Street's expected $1.18.

And shareholders pulled the plug...

Sell the rumor, sell the news?

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Arnold's picture

We bring good things to life / light.

small axe's picture

We burn shareholders like bbq ribs / hot dogs

tmosley's picture

Need to liquidate this peice of shit and let all that capital they have misallocated start doing some actual worthwhile work.

ShorTed's picture

crash = down 3.7%?

 

 

The_Juggernaut's picture

Cramer says you shouldn't own it, so at least they have that bullish signal going for them.

TruthHunter's picture

Cramer says you shouldn't own it"  

Translation: He wants to own yours.

French Bloke's picture

Ha Ha - Alstom, the firm that Macron sold the US for a song not delivering. How French!

Branded's picture

The real magic is later today when they go green on the fucking close.

ali-ali-al-qomfri's picture

Cccchhhhttt.

Ah Ladies and Gentlemen, this is your Captain, it appears we’ve lost all power;

 to all systems and we’re runnin’ on fumes,

thankfully for backup syssssstttttta

bshirley1968's picture

Like building a bitcoin farm?  Yeah, that's some real work there.

RockySpears's picture

 ....  and what "Worthwhile work" is BitCoin investment doing?

 

RS

ShorTed's picture

Besides undermining the fiat system and depowering the banks and tptb?  

I bought 10 BTC @ $225 in July 2015.  I've had to sell some along the way to pay some bills.  Still have 4 left...so in my case it's building wealth.

JimmyJones's picture

BC and Either are the decentralized banking system of the future. They are literally a new playbook and have far lower transaction cost. ThE bankers can't print BC , the Gov't can't barrow it.

NoDebt's picture

"*GE TO BORROW $6 BILLION FOR PENSION CONTRIBUTION, CEO SAYS"

Who they borrowing that money from?  GE Capital?  

I'd love to hear how that loan approval process went down:

"Hi, I'd like to borrow $6B."  "Sure, what for?"  "Oh, we're just gonna piss it down the bottomless pension fund hole."  "Then how will this loan be repaid?"  "It won't."  "Oh, I see.  Loan approved."

 

2_legs_bahhhhhd's picture

GE Capital, the same vulture capitalist predator bank that destroyed many small businesses during the tech boom/bust, lending money, knowing that Nortel and friends were cooking their books and financing telco startups that had no revenue to pay it back. The same GE Capital that demanded collateral/security from small business that was the backbone of Nortel supply chain, knowing they were going to implode, because they were buying Nortel receivables. Other than that,a fine institution of capital malfeasance.

Millions of pension fund victims in that scam that never got one moment of exposure in the media.....wonder why.

GUS100CORRINA's picture

FYI for ZH readers ...

GE had to put money back into the PENSION fund because they used PENSION funds to originally buy back company stock. To bad they paid a higher price for the stock.

So we can think of this as a debt leveraged buy back operation.

So, the US Government has been stealing money from Social Security to fund government operations.  So when is the US Government going to put the money back into Social Security? 

Inquiring minds want to know!!!

Donald J. Trump's picture

Funny you mention this.  No one said s thing during presidential primaries when Chris Christie was talking about .gov raiding social security and that the money was gone, people got screwed over.  It's bever being repaid.  We have to make sure this doesn't happen again.

I said WTF, that's it?  It's gone like in South park It's gone?  And the gov doesn't have a way or intend to reimburse it.  Fuck you .gov find the money you stole.

exonomic halfbreed's picture

Perhaps we could bring back debtors prison for families of the CCCP (Country Club Criminal Party) after the collapse.  Five hundred years of involuntary servitude for they and their descendants to make an example for other would be inbred sociopaths.  

HarryKallahan's picture

The loan is as good as gold.

It's secured by the pension fund.

Omen IV's picture

Immelt was a complete disaster for the Company that Welch built

Branded's picture

Welch was the cocksucker who built the company you see before you now. He just had it nicely wrapped in a big box with pretty paper and shiny bow, handed it to Immelt and fled the scene. His timing was impeccable don't you think - almost as if he knew something?

Buck Johnson's picture

Things are coming apart at the seems, the market is getting ready for the big pop.

 

NoDebt's picture

Cooked books covered up with heavy government favors under the Obama administration.  And now the tide goes out and everyone discovers GE HAD NO BUSINESS MODEL ALL ALONG.

Fucking classic.

 

venturen's picture

bad decade to give up being a corrupt bank

Son of Captain Nemo's picture

GE CRASHED "LONG AGO"!...

Fixed it!!!

hairball48's picture

Tell me again why I should care about GE.

Arnold's picture

Before Unicorns, there were Blue Chips; consistent, solid dividends that were the basis of many retirement plans..

Wahooo's picture

Before financialization anyway..

LawsofPhysics's picture

LOL!!!  Priced in what?

Fucking irrelevant, I just hope all their very real products keep working.

"Full Faith and Credit"

devnickle's picture

Like boiling water reactors that tend to explode?

hedgeless_horseman's picture

 

Borrow $6,000,000,000 for a pension contribution?

lol

Using one credit card to make a payment on another debt.

Banker approved!

LawsofPhysics's picture

If DEBT is the only thing you are selling, of course it makes perfect sense.

 

"Full Faith and Credit"

devnickle's picture

Ah, the law of multiplying consequences. 

michigan independant's picture

Looted and the entire board should be terminated by yesterday.

pitz's picture

GE was doomed when they started going down the road of all that 'financial' crap and heavy reliance on vendor financing.  Internally the company is an utter mess, with it taking months even to get a new employee set up with voicemail.  GE is where ideas and acquired companies essentially go to die and end up worthless.  

 

Captain Nemo de Erehwon's picture

I thought it was everything electric now ... cars, currency and whatnot. And we can never question Generals ...

venturen's picture

all need to do is mine bitcoins....and make billions...

Rick Cerone's picture

Who gives a shit!

CHX13's picture

Trades like silver on a day with no news !

onthedeschutes's picture

Blue Chip becomes Cow Chip.

Truth Eater's picture

GE is what produced defective nuke power plants (Fukushima and MANY other locations) and fired their engineers who warned of the weaknesses.  GE is responsible for polluting the whole Pacific Ocean and all the northern hemisphere with radioactive waste.

FoggyWorld's picture

News came out this morning that Hawaii has received 200 times more Fukushima radiation than models had predicted.  Over a trillion becquerels of nuclear waste have fallen on Hawaii so far.

And last week a study of the fish in that area was released and it shows that almost half of the fish in the waters in and around Hawaii are carrying radiation.

Angelo Misterioso's picture

Immelt traveled with a spare airplane - just in case - that alone should be grounds to fire the entire board -

Cardinal Fang's picture

The white man in the gray flannel suit is out of a job.

They went global.

This is the result.

Falconsixone's picture

Focused Ecomagination and healthymagination programs. Better quadruple down.