GE relevance?I'm reading between the lines that this could be relevant to PYR if Arcam isn't able to ramp up production because GE can't afford it. What if they have to lay off people?
Here's more on the problems at GE: General Electric (GE) is having a tough time reassuring Wall Street that its turnaround strategy will be successful. The company received a pair of downgrades earlier this week, prompting the stock to close at its lowest level in four and a half years—and shares haven’t recovered since. The stock’s losses were further exacerbated following reports that the company is looking to spinoff parts of its business. The two downgrades were issued by UBS and Morgan Stanley. UBS lowered its rating on the stock to neutral from buy with a price target of $24 a share, while Morgan Stanley cut its rating from equalweight to underweight and lowered its price target to $22.
In a note to clients, Morgan Stanley analyst Nigel Coe wrote that the challenges CEO John Flannery faces are “greater than even we had imagined,” and the team now believes GE’s “dividend will have to be adjusted down to reflect substantially lower earnings power.” The firm recommends GE reduce its dividend from $0.96 to closer to $0.70, which would be a 37% cut.
Although General Electric is by far the biggest loser in the Dow so far this year, a sell rating on GE isn’t too common, and that’s why Morgan Stanley’s bearish call caught some investors by surprise. The stock has erased more than $94 billion from its market cap in 2017 and is down about 34% since the start of the year.