Another day, another $50Bn. ;
That's how much of their own stock GE will be buying back (20{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} of the company) after selling most of their GE Capital Assets to Blackston (BX) and others. ;Keep in mind $50Bn is about what the big Central Banksters pour into the markets in a whole month and GE is now ;the 2nd public company to match them this week (RDS.A dropped $70Bn on the markets on Tuesday).
Though the markets are taking it as a positive (GE must be undervalued, right?), I take it as a sign that GE is worried about Commercial Real Estate again and they are cashing out while they can and, since there is nothing worth buying with $35Bn and since money is cheap, they are using the cash to fund a massive buyback to reduce the number of shares their shrinking earnings are divided by in order for the board of directors to keep their phony-baloney jobs. ;
After all, you don't need to pay out tens of Millions in salaries, bonuses, stock options, etc. to have Immelt and his Board preside over a liquidation sale – do you? ;That's why it can't LOOK like a liquidation sale – it needs to look like restructuring for the 21st Century or some such nonsense you can expect to read about in the annual report. ;
Don't get me wrong, I love GE. ;We were buying it hand over fist when it was under $10 back in the crisis but, at $25+, we liquidated our positions because we (like GE, apparently) couldn't see how they could generate good returns off the current conglomerate mix they cem into 2014 with. ;So a radical restructuring is a good idea if they ever want to see $50 again but this isn't a restructuring, this is a retreat. ;
Selling $35Bn worth of assets it took decades to accumulate and borrowing another $15Bn to buy back your own stock is NOT about building for ;the Future – it's about propping up the present!
We already took adavantage of the early excitement to short the /ES (S&P) futures at 2,090 in our Live Member Chat Room. ;We expect a…
SOURCE: Phil’s Stock World – Read entire story here.
