* In a previous post I talked about GE and its insane hold onto its dividend, risking its AAA credit rating. The reason they hold onto the dividend is to entice investors to buy their shares. And GE was and is in need of cash.
General Electric loses AAA long-term credit rating
Standard & Poor's took away General Electric's stellar, AAA long-term credit rating, taking it down one step to AA+, still considered an investment-grade rating. The rating for GE Capital was lowered from A+ to A. The unit is the verge of write-downs from consumer and commercial loans as well as real estate investments. CNNMoney.com (12 Mar.)
Obsession with share price a "dumb idea," Welch says: Former General Electric CEO Jack Welch, widely seen as the father of "shareholder value," criticized corporate executives' emphasis on share prices and quarterly results, to the point of neglecting profit and the long-term growth of the company. "On the face of it, shareholder value is the dumbest idea in the world," he said. "Shareholder value is a result, not a strategy." Financial Times (12 Mar.)
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