Saturday, April 4, 2026 
GE and the Delusion of Jeff Immelt
General Electric (GE) announces a horrid, dismal quarter. Then, they fire up their Public Relations machine by putting their delusional thinking into a press release that says not to worry.
“The first quarter dividend is done, and we are committed to our plan for $1.24 per share for the year. We believe the GE dividend provides our investors with a solid return in this uncertain time,” Immelt said.
Stop believing. You are hoping when you should fear. GE’s dividend will be cut. It is already written. GE grew through acquisitions. That games works really well…until it doesn’t. GE is an over leveraged hedge fund. When you grow through acquisitions and you are over leveraged, the survival of your business becomes dependent on the price of your equity. As GE’s common stock moves lower, it’s probability of gambler’s ruin increases. Moodys already looks ridiculous for not yet having lowered GE’s Triple A rating. As the stock moves below 10, they will look even more ridiculous.
Peace
The dividend is safe, until it isn't
[...] Electric (GE) announced today what Trade the Picture announced on January 23rd. It’s official. The dividend has been cut. The silence of Moody’s is deafening. GE will [...]
Pingback by GE Cuts Dividend | Trade the Picture — February 27, 2009 @ 2:39 pm
[...] In the states, the financial reporting on television is far too biased. Any financial channel owned by General Electric should be viewed with extreme caution. $GE is very over leveraged. Knowing they could not make their dividend, they assured everyone they could. [...]
Pingback by The Economist Nails It Again | Trade the Picture — April 10, 2009 @ 10:05 pm
RSS feed for comments on this post.
TrackBack URL
https://www.volatilitynews.com/2009/01/ge-and-the-delusion-of-jeff-inmelt/trackback/
Leave a comment