One of the worst-performing stocks in the greatest bull market has once again disappointed investors with a mixed fourth-quarter earnings report. That company is General Electric Company (NYSE:GE), which is the PreMarket Prep Stock of the Day.
Related Link: Recap: General Electric Q4 Earnings
One Stat Says It All: On a reverse split basis (1 for 8), General Electric made its all-time high in October 2007 at $324.13. At its current price of $90, that represents a decline of 72% or a tad less when dividends are taken into consideration.
Over that same period of time, the S&P 500 index has returned 174%.
Reverse Split Is No Help: In a questionable move to breathe life into its depressed price, trading above and below $10 for years on end, the company did a reverse split that was effective July 31. In addition, the company introduced some financial engineering tactics to bolster the effort.
From its closing price on the day prior to the reverse split ($103.06), at $90, General Electric stock has declined 12.7%.
Mixed Q4 Report: Before the open Tuesday, the company reported fourth-quarter adjusted EPS of 92 cents, which beat the 87-cent estimate. The company came up shy on sales of $20.30 billion, which missed the $21.48-billion estimate.
Also, the GE CFO said with respect to Health Care, supply chain challenges are expected to continue at least through the first half of 2022.
PreMarket Prep's Take: Between the hosts of the show and its producer, there was not much good to say Tuesday about General Electric.
The only technical comments were made by co-host Dennis Dick, who had a broad trading plan to try and buy issues at or near the previous day's low.
Dick commented, “If you want to take a shot a Monday’s low, go right ahead, but if it does not hold, exit fast.”
GE Price Action: The issue opened over $1 lower from Monday’s low ($91.12 vs. $92.22) and attempted to rebound. The attempted rally stalled just ahead of Monday’s low, only reaching $91.88, and resumed its move lower.
The ensuing decline found support at $88.30 and is now attempting to make a new high for the session as of 2 p.m. EST.
GE shares were down 4.78% at $92.28 Tuesday afternoon.
The full discussion on the issue from Tuesday’s show can be found here:
