Analysts have issued bearish reports regarding General Electric (NYSE:GE) over the past few weeks. They offer two main complaints about the firm:
- Now that GE has sold off the consumer finance business, the industrial business will not be generating very much cash (there may even have to be a dividend cut, opined one analyst).
- The firm has huge unfunded pension liabilities that will bring the company to ruin.
Let’s look through each of these contentions one by one.