GE - Pressure remains to the downside!GE has suffered enormous pressure to the downside as everyone is aware. Money Flow and RSI are at lows not seen even during 2009.
As the saying goes “the bigger the drop, the bigger the need for repair.” Ex - all items, GE’s cash flow has not grown since 1994.
Just back 3 - 4 years ago GE was producing ~ $24 billion in cash flow. Using Basel III agreement TCE ratios, GE is underfunded
by ~ $53 billion as of 3rd qtr. 2017. Assets need to be sold and equity add to the books!
Valuation: Using ex-item numbers, GE produced ~$ 8.5 billion in cash flow for 2017. Applying a generous 2% growth rate the
Intrinsic Value Buy price is $6.50 and a Sell at $16.
Target of $8.
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