General Electric Co. fell again on Wednesday after the new CEO of the company cut the investors and reminded them that the problems facing the company are far from over.
The revelation that the company's industrial business will record a negative cash flow for the year has led Melius Research to lower its mark while JPMorgan Chase & Co. said their $ 6-per-action target, the lowest on Wall Street, could be too generous. The biggest danger is that the worsening collapse of GE's business will "eat" the money the government needs to cope with the negative situation.
"Cash flow losses in 2019 will be very, very serious," said Scott Davis, an analyst at Melius. "It is clear that there is a very big restructuring announcement and the money that will be needed will be a lot, and there is no easy way out of this mess."
Regarding the technical analysis, the weekly chart reveals a pronounced downward trend, which creates ever lower peaks and deeper bottoms. 50/200 periodicals are also in the bear formation. The rise we witnessed this year was nearly halved in only two weeks. This is at the moment only a healthy correction of the long-term movement, with the price being tested for the 50-year period, after which the current bar this week is very strong and breaks the local bottom.
Source: Bloomberg Finance L.P.
Original Post: GE's $6 Price Target Now Looks Generous, JPMorgan Says
Chart: Used with permission from Bloomberg Finance L.P.
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