The assets keep shrinking and the debt keeps rising.
Cash on hand keep shrinking.
I first commented on GE’s “Goodwill assets” here. They account for about 30% of GE’s assets. I suspected these assets were not real. This quarter, GE Power recorded a goodwill impairment charge of $22 billion.
Stating the obvious, GE power is a disaster. Putting aside the impairment charge, earning from continuing operations is still negative. Selling off assets will not be enough. They have become a massive bureaucracy. The way they do business must change. They need to make the company lean. If these trends do not reverse GE will become a penny stock.