Category Archives: Energy
News broke over the weekend that the Saudi Kingdom had detained 11 princes, 4 ministers, and 34 other senior officials, former ministers, and prominent business owners as part of an anti-corruption campaign. All are apparently being held at Riyadh’s Ritz Carlton Hotel and sleeping on thin mattresses placed on the floor in a ballroom – including billionaire investor Prince Al-Waleed bin Talal, who is well known in the west for investments in such companies as Citigroup Inc. (NYSE:C), Twitter Inc. (NYSE:TWTR), and Apple Inc. (NasdaqGS:AAPL).
The Western media has reported this move as part political shakeup, part coup prevention, and part power play by a young, ambitious Crown Prince Mohammed Bin Salman.
As usual, they’re missing the real story.
It’s ALL about the money.
General Electric Co. (NYSE:GE) stock has fallen 63.53% from a peak of $60.00 on August 28, 2000, to a 52-week low of only $21.88 per share. Not surprisingly, millions of investors are eyeballing it thinking to themselves that it’s ripe for a recovery.
Good luck with that.
The stock will have to appreciate 127.06% just to break even.
Dividend investors are at particular risk because the cash flow is so bad that executives may not be able to cover the $8 billion nut legions of retirees are depending on.
That anyone thinks this is a surprise at this stage of the game given the company’s history simply boggles my mind.
General Electric is a train wreck of a stock and has been since former CEO Jeffrey Immelt took over from “Neutron” Jack Welch in 2001. At the time, he was viewed as a hero capable of running the legacy he inherited to new heights, but now, 16 years later, Immelt may go down as one of the single worst CEOs of all time.