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Aef

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Alias Born 08/01/2013

Aef

Re: TheCleos post# 6178

Thursday, 10/26/2017 11:40:55 PM

Thursday, October 26, 2017 11:40:55 PM

Post# of 6624
I think it's possible this is just a cheap way to raise money. GE had a terrible quarter. Read the article below if you haven't. One line:

"The decline in the power business also put a big dent in G.E.’s cash flow, reducing the corporate total by an estimated $3 billion, to about $7 billion this year, the company said. That has raised questions about G.E.’s ability to keep paying its current dividend, which consumes about $8 billion a year, analysts estimate."

https://www.nytimes.com/2017/10/20/business/general-electric-strategy-report.html?rref=collection%2Ftimestopic%2FGeneral%20Electric%20Company&action=click&contentCollection=business®ion=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=collection

GE/Arcam want to invest more money, this may just be a good way to do it, although I don't claim to understand the finances of underwriting loans etc, but according to the investopedia previously posted, companies raise money this way because it's cheaper.

As I've said before, I don't see why it would matter a great deal to GE to get our small potatoes retail shares, not sure how that would make much of a difference since Elliot is the only block to full ownership. Maybe there is some reason it simplifies to get down to less owners but I'm not sure what that would be.

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