Jan
16
GE’s Latest Blast of Bad News Has Wall Street Bracing for More
ByGeneral Electric Co.’s disclosure of a larger-than-expected $6.2 billion charge related to an old portfolio of long-term care insurance triggered the biggest drop in its shares in more than two months. And analysts say it could be just the beginning of a new wave of bad news from the manufacturer, whose shares plunged 45 percent last year as it undergoes a massive overhaul.
The company’s new chief executive officer John Flannery, who took the helm in August, suggested the company may now be open to a more radical divestment plan than the one outlined in November. Cowen & Co. says a break up of the company may not be economical as the company’s current share price is now worth more than the sum of its many parts. RBC Capital Markets says further charges wouldn’t be surprising and notes that bad news often “comes in installments.”…
