GE Resorts To Financial Engineering to Boost Stock Price

April 13, 2015 2:51 AM

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Jeff Immelt, feeling the pressure for a stock price that has vastly underperformed the overall market during his tenure as CEO at GE, has finally taken financial engineering to an entirely new level. Despite being in the era of Central Bank Liquidity and ZIRP, GE`s stock price can best be described as treading water. The stock is down almost 13% over the last 7 years, and this is with record shares being taken off the market due to enormous stock buybacks by the company.

I would hate to see the stock price in an environment with normal interest rates and much higher borrowing costs. When you factor in the cheap borrowing costs paving the way for enormous stock buybacks GE`s underperformance is stunning to say the least. GE has been one dog of a stock the last 7 year...

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