Category Archives: Total Wealth Independence

General Electric: Barely Worth $11/Share

General Electric Co. (NYSE:GE), a once-proud American icon, has fallen on hard times. The much ballyhooed investor day flopped, at least according to financial markets, which punished the stock last Monday and Tuesday.

Many investors are wondering if they should buy.

No.

Not unless you have money to burn and you like playing games where the odds are heavily stacked against you.

GE’s breakup value is only $11 a share, according to my back of the envelope calculations – and even then just barely. That means the stock could drop another $7.28 per share, and that the once-proud conglomerate will lose another $95.24 billion in market capitalization.

The company should be on deathwatch.

Contrary to what Wall Street would love to have you believe, GE is NOT a turnaround play.

  • Shares are down 5% after CEO John Flannery’s plan for a “more focused” company fails to excite… well… anybody.
  • GE’s dividend got a 50% haircut that’s the worst (and largest) of any U.S. company outside of the financial crisis.
  • GE’s shares are trading at levels below where they traded 20 years ago, and have lagged the S&P 500 by more than 50% this year alone.

CNBC’s Jim Cramer even went so far as to call investing in GE “one of the biggest mistakes of my career” saying rarely has he “felt this stupid.”

I agree.

Fortunately, you and I have never made the same mistake.

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The Truth Behind the Tax Cuts We’re Promised Will Determine Our Market’s Future

Don’t bother Googling “what tax reforms are Democrats proposing?” There aren’t any.

Republicans, on the other hand, according to House Speaker Paul Ryan, “have to deliver tax cuts to the hardworking, middle class.”

But they’re not doing that, either.

Instead, Republicans want voters to believe big tax cuts for corporations are going to trickle down and create jobs that elevate wages for hard-working Americans.

That’s not going to happen.

The truth about Republican tax-cutting plans and why the Democrats aren’t offering up counter tax-cutting proposals is, unfortunately, not at all what America needs.

Here’s why the politicians have it all wrong, and how the markets will react to potential tax cuts

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Posted in: Total Wealth Independence |