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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (59913)	10/10/2017 6:39:13 PM
From: E_K_S	Respond to of 78814

Re: GE & ABB GN valuation is $17.28/share but may/could be a bit higher w/ recent sale of assets to ABB, possible paydown of debt and lagging EPS. I like both ABB and GE and will probably add to my GE shares somewhere at/below $22.50 (some speculation that div gets cut). I want to start a position in ABB too but it is 15% my recent Buy target. ABB's GN number is $13.18/share. So the better 'value' Buy is GE at this point. I sold 60% of my GE shares above $30/share late last year and would like to build back my portfolio position in both GE and start a new position in ABB. Any idea of what the pension obligation look like for GE and/or ABB? I suspect GE's reserves are large but s/d be fully funded. EKS

To: Spekulatius who wrote (59913)	10/12/2017 12:21:20 PM
From: E_K_S	1 Recommendation Recommended By MCsweet Read Replies (3) \| Respond to of 78814

The $31 Billion Hole in GE’s Balance Sheet That Keeps Growing Pension shortfall is the biggest among S&P 500 companies At $31 billion, GE’s pension shortfall is the biggest among S&P 500 companies and 50 percent greater than any other corporation in the U.S. It’s a deficit that has swelled in recent years as Immelt spent more than $45 billion on share buybacks to win over Wall Street and pacify activists like Nelson Peltz. When it comes to dealing with GE’s pension, Flannery may have few good options. While many other companies, including General Motors Co., have offloaded some of their obligations to insurers, it could come at a considerable cost because of how big and underfunded GE’s pension has become. The company has the largest projected benefit obligation of any S&P 500 member and among the top 10, no one has a lower funding ratio. ---------------------------------------------------------- Maybe that was why they sold those assets to ABB that may have helped them 'off load' some of those pension obligations. Maybe more of that to come. EKS