A bearshitting analyst upgraded GE this morning, sending shares higher.
Source: CNBC
General Electric shares rallied on Wednesday after longtime analyst Jeff Sprague raised his rating on the embattled industrial conglomerate’s stock to buy.
It’s the first time in more than a decade that he’s recommended clients purchase the stock.
“After 10 years on the sidelines we are upgrading GE to buy,” the Vertical Research Partners analyst said. “We see a path to create equity value.”
“It took GE at least 20 years to dig this hole and it will not get out in a year or two … While the work ahead is still hard, we think the lack of investor confidence will slowly subside,” Sprague added.
This is a 10% position of mine. It is the perfect stock for a reflex rally. It’s hated, but also revered. It’s highly leveraged, but they also have great assets. It’s down a fuckload and people are short the stock. On any rally, this will outperform most stocks.
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Bought some /ES at 2548 and got a few more bids down to 2528. Maybe I just want to lose money.
Went flat at 2568 for a few stacks.
volume!!!!!!!!!!!!
to da moon Allice…. TO DA MOON!
yesterday GE ran up to $7.61 before coming back down to $7.27 at end of day; closing at $7.27. Being a conspiratorial person where markets are concerned, you have to wonder whether all this was done to let certain interests get in at lower prices before the upgrade. inquiring minds need to know.
GE has a $67B market cap and $59B in Goodwill on it’s balance sheet.
Also, why would a company in it’s condition continue to pay a dividend? Obviously short-terms goals are more important than long-term ones for current management.
Maybe (probably) good for a trade, but I wouldn’t own it for long.