Following whistleblower Harry Markopolos’ allegations that General Electric is “a bigger fraud than Enron”, GE CEO Larry Culp purchased $2 million worth of shares in the group.
Filings with the Securities and Exchange Commission from late Thursday reveal that Culp bought 252,000 GE shares at $7.93 each yesterday, as the stock plummeted on a Wall Street Journal report that Harry Markopolos has pointed out what he considers fraudulent financial statements from GE.
Markopolos is an accounting expert who had in the past taken the lid off Bernie Madoff's investment fraud. According to Markopolos, GE’s insurance unit would need an $18.5 billion boost to its reserves. His report also mentions that GE’s accounting irregularities would amount to around $38 billion – which is around 40% of the company’s market cap.
However, responding to Markopolos’ allegations at GE, Culp said in a statement, “GE will always take any allegation of financial misconduct seriously. But this is market manipulation – pure and simple”. He further added, “Mr. Markopolos’s report contains false statements of fact and these claims could have been corrected if he had checked them with GE before publishing the report.”
Following reports of Culp’s purchase of GE shares, the stock climbed more than +5% Friday.
The Moving Average Convergence Divergence (MACD) for GE turned positive on January 30, 2024. Looking at past instances where GE's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 313 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 18 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GE broke above its upper Bollinger Band on February 14, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.094) is normal, around the industry mean (4.810). P/E Ratio (19.214) is within average values for comparable stocks, (46.112). Projected Growth (PEG Ratio) (1.777) is also within normal values, averaging (2.166). Dividend Yield (0.002) settles around the average of (0.022) among similar stocks. P/S Ratio (2.480) is also within normal values, averaging (11.108).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
A.I.dvisor indicates that over the last year, GE has been loosely correlated with IR. These tickers have moved in lockstep 47% of the time. This A.I.-generated data suggests there is some statistical probability that if GE jumps, then IR could also see price increases.