General Electric (GE) is under pressure again. Like I said in my last article (read General Electric Is Uninvestable), the company is making a lot of noise, and just this week we learned that 1) company may sell its insurance business, 2) Flannery sees no imminent turnaround in the Power segment, and 3) another dividend cut maybe in play. This is all bad news, and these announcements further strengthen my belief that General Electric’s stock remains uninvestable at today’s prices.
Insurance Sale
Rumors are swirling that the company has hired bankers to offload its struggling insurance business. If you’ve been following the company closely you know that the division just took a loss of $6.2 billion after the company recalculated future obligations. Instead of trying to turn the business around, management has chosen to get rid of the headache the easy way.
