General Electric (NYSE: GE) continues to be used over several generations, one of the main foods in stock too many investors. As one of the main components of the driving and the S & P 500, only 2 percent of their weight and 76 percent of the S & P 500 Index Industry Company, and as the main engine of Dow and other indexes - retail fund managers - GE has become need to be.
But why is the debt itself, and investors will get whacked?
This year, the population increased by more than 16.5 per cent, compared with only a few ticks on the S & P 500 during the year.
And over the past 12 months, a similar story with GE as a whole loses more than 61 percent. And if we go back to 5 years and 10 years, GE has continued this trend of dramatic loss of more than S & P 500 by almost 247 per cent of traffic 5 years and 97 per cent over the past 10 years.
Not surprisingly, therefore, if the fund shares in the United States, Vanguard, Dodge and Cox,
T. Rowe Price, Fidelity and many others in their portfolios GE, and not just loss of money - but lose the common market.
GE is toxic for your portfolio.
But look at what lies ahead.
Over the next 3 years, starting in a few months, GE has made about 250 million of bonds, government and bank loans. Bad, as compared with its current market capitalization of only 143 million U.S. dollars.
Worse still, of course, the company's debt is nearly 500 percent of their net capital in general - in fact, if the bank or it is too small for U.S. Fed. Bank of stress test that they took of you know that this company.
And if you need to know what is the main reason for this supposedly well-diversified industrial companies fare so badly, you can look at the composition of revenues from GE.
The largest portion of revenues for the fiscal year, capital and consumer lending. Add to your entertainment unit, as well as a combination of unrest in more than 46 percent.
Then, with the help of lower advertising revenue and the wandering eyes and ears - at the top of the known difficulties in the credit market - it is not surprising, GE deeper problem, which remains beyond the facade of its industrial plants and other products and divisions.
The increase of 250 billion just to extend the current debt is very disappointing - especially given the fact that its cash position was about 15 million people. And with its current operating obligations by more than 23 billion, which makes you kind of wonder how they manage their accounts in the quarter, even before you refinance its debt in the long run.
Sell and stay away. And check your stock investment funds. If you have a GE - more than a few really stellar performers for this operation. Otherwise, the time to sell, should be encouraged.
General Electric: Toxic assets?
Labels: Investment, Investor