💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

GE slides another 3%; Deutsche Bank says may need to raise equity capital

Published 01/19/2018, 02:10 PM
© Reuters.  GE slides another 3%; Deutsche Bank says may need to raise equity capital
DJI
-
DBKGn
-
GE
-
  • General Electric (GE -3.2%) shares tumble to a fifth straight decline, threatening to fall below $16 only a day after breaching $17 for the first time since 2011.
  • GE rebounded as much as 11% to start the new year but has now dropped more than 6% YTD and is the Dow's worst performing member again this year after winning the same dubious distinction in 2017.
  • The latest negative vibe comes via Deutsche Bank (DE:DBKGn) analyst John Inch, who says GE's current cash squeeze and growing liquidity pressure may force the company to raise equity capital.
  • Inch, who has a Sell rating on GE with a $15 price target, sees plenty of risks beyond any equity capital raise, including additional mandated insurance reserve contributions, increasing debt and debt rating downgrades, and another dividend cut.
  • Now read: GE's Earnings: What Will Matter, What Won't


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.