News In Letter Form

Fly Charts: Mergers in Toyland and More of the Same From GE

From Qualcomm's forever war to blasé bond investors, here are four charts that tell you what you need to know in business today.
Photographer: Martin Divisek
GENERAL ELECTRIC CO
-0.06
At Closing, May 18th
14.97 USD
QUALCOMM INC
+0.56
At Closing, May 18th
57.51 USD

Good morning! This is Fly Charts, the daily charts-only newsletter from Gadfly; sign up here. From Qualcomm's forever war to blasé bond investors, here are four charts that tell you what you need to know in business today.

Tight Squeeze

GE still has cash flow problems and a lack of imagination after slashing its dividend.

Source: Company reports, Bloomberg

Industrial CFOA excludes deal taxes/pension. GE defines industrial free cash flow as CFOA plus Baker Hughes distributions, excluding deal taxes and backing out capital expenditures, capitalized software investments and pension funding. Cowen strips those puts and takes away.

Window of Opportunity

Mattel's underperformance has made it substantially more vulnerable to a renewed Hasbro takeover approach.

Source: Bloomberg

Buy Low

Qualcomm says Broadcom's unsolicited takeover bid undervalues the company. But investors must acknowledge that its current weakened state may be permanent.

Source: Bloomberg

Delayed Reaction

Bond investors have been uncharacteristically slow to react to worsening news at struggling companies.

Source: Bloomberg

The bond price is of the issue due in March 2037.

And don't miss Chris Bryant on nuclear troubles in France: "If power companies were rewarded for not pumping out planet-warming carbon dioxide, then Electricite de France SA would be a prince among paupers. Nuclear and renewables accounted for 88 percent of the French utility's output last year, whereas coal and fuel oil contributed just 4 percent. Yet EDF is far from being electricity world royalty. Instead, it resembles a weary performer struggling to keep an array of china plates spinning overhead, while being barked at by a government circus-master."

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

    To contact the author of this story:
    Max Nisen in New York at mnisen@bloomberg.net

    To contact the editor responsible for this story:
    Mark Gongloff at mgongloff1@bloomberg.net

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