GE Investors Want More Show, Less Tell
CEO Larry Culp should save his words for when he has something concrete to add about the company’s turnaround.
The view isn’t any clearer.
Photographer: Luke Sharrett/Bloomberg
General Electric Co.’s words are ringing hollow.
Shares of the troubled industrial conglomerate continued their downward spiral on Monday, slumping as much as 10 percent to dip below the $8 threshold. This follows a 5.7 percent rout on Friday after JPMorgan Chase & Co. analyst Steve Tusa warned GE’s deteriorating earnings and cash-flow outlook is colliding with an estimated $100 billion of net liabilities. Some of his concerns were echoed in a report out this week by Credit Suisse analyst John Walsh. That certainly didn’t help the stock, but I think the culprit for Monday’s slump was GE CEO Larry Culp’s interview with CNBC.