As there are lots of questions about what’s next in
equity space let’s compare stocks from old and new economy – GE and
Tesla.
General Electric – a time to buy after
almost 50% decline from 2016 peak and recent fall?
Still on the weak side as investors digest the overhaul
plans with question marks about the success
Aligning dividend payout to cash flow generation
To cut underperforming divisions (USD 20 bln), long-term
bonuses
To focus on aviation, healthcare and renewable energy
equipment
More in article: General Electric Slashes Its Dividend
50% As CEO Flannery Resets Ailing Conglomerate link
General Electric Cuts Dividend by Half and Slashes Profit
Goals link
GE weekly – with decline of 46% from 2016 peak
Source: Saxo Bank
GE daily – decline of 14% over the last two
sessions after CEO announce dividend cut and overhaul of the business
Tesla – a short candidate on a strong history of
cash burning?
Financial performance deteriorates - structural
unprofitability likely
Most cash raised recently is already burnt - next equity
sale looms
Institutional ownership declines - distribution continues
Management churn accelerates - corporate culture looks
damaged
Only the story matters - the stock remains a trade
vehicle
More in article: Tesla Approaches Terminal Decline
link
Tesla weekly – up 101% from 2016 low
Source: Saxo Bank
Tesla daily – a 21% decline from Sep 2017
peak
Source: Saxo Bank
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where
despite this disclaimer someone would consider this material as an investment
advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom
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