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Started By
Message
re: General Electric, a Bigger Fraud than Enron
Posted on 8/15/19 at 12:44 pm to hubertcumberdale
Posted on 8/15/19 at 12:44 pm to hubertcumberdale
quote:
By now you have seen headlines reporting on allegations from a third-party regarding GE’s accounting. We believe these claims are meritless and ill-informed. And I want you to know the facts. First and foremost, GE operates at the highest level of integrity and stands behind its financial reporting. We remain focused on running our businesses every day, following the strategic path we have laid out. Second, contrary to these unsubstantiated allegations, GE continues to maintain a strong liquidity position, including more than $16B in Industrial Cash, and $35B in committed credit lines. We also have additional options available to us down the line to generate cash to help bring down our leverage, including our remaining interests in BHGE. And third, context matters. The individual who published this report today openly acknowledges that he is paid by unnamed hedge funds. Such funds are financially motivated to attempt to generate short selling in a company’s stock to create unnecessary volatility. I suspect they did pretty well today. The report they published today even states that those “positions taken by the third-party entity are designed to generate profits should the price of GE securities decrease.” GE will always take any allegation of financial misconduct seriously. But this is market manipulation – pure and simple. This individual’s report contains false statements of fact and claims that could have been corrected if he had checked them with GE before publishing the report. The fact that he wrote a 170-page paper but never talked to company officials goes to show that he is not interested in accurate financial analysis, but solely in generating downward volatility in GE stock so that he and his undisclosed hedge fund partner can personally profit. While we still have much work ahead of us, we are making great strides to return GE to a position of strength—and that’s in large part to the work you do each and every day to serve our customers around the world. I’m proud to be on this team, and I remain confident in our company and our strategy to improve our financial position. On CNBC this morning, this individual justified his actions by saying, “I have a family to support.” Well, so do I and so do you. We’ll do so by taking the high road, serving our customers and delivering for our shareholders. Thank you for all your hard work on our behalf. Larry
Letter from GE CEO
This post was edited on 8/15/19 at 3:07 pm
1
Posted on 8/15/19 at 12:46 pm to hubertcumberdale
quote:Without question.
You think these guys are that brazen?
E.g., Bill Ackman took a huge short position on Herbalife. Then did everything he could to run it down. Ackman's targeting was certainly more brazen than this Markopolos incidence, and the effort lasted a few years. Ackman was investigated. In the end, the SEC did nothing about it.
This post was edited on 8/15/19 at 12:47 pm
Posted on 8/15/19 at 12:58 pm to NC_Tigah
quote:
Want to guess as to the likelihood of that fund shorting GE in advance of Markopolos's report?
WSJ article freely states that he shorted. he gets a cut of the hedge fund gains on the position. he is also trying to recover under whistleblower statutes. i can't imagine he would go that route if it was a bogus attempt to boost a short position.
Posted on 8/15/19 at 1:18 pm to cave canem
quote:
Markopolos is working with a hedge fund he didn’t identify and stands to benefit from bets that GE’s stock will decline, according to the Wall Street Journal
If it’s unidentified, how do they know he stands to profit?
Here’s a hint, if he planned to short, he would have been doing it before he released the report
This post was edited on 8/15/19 at 1:24 pm
Posted on 8/15/19 at 3:25 pm to TheDeathValley
quote:
This individual’s report contains false statements of fact and claims that could have been corrected if he had checked them with GE before publishing the report.
I'm not saying everything is accurate, but the guys report is based on fraudulent behavior. Not sure why he would contact the company for some canned IR response
Also, not that i expected it but he didn't specifically address the pending liabilities that they are saying aren't properly marked. He's just saying they have cash and credit.
Posted on 8/15/19 at 4:40 pm to OleWarSkuleAlum
quote:GE CEO Larry Culp bought 252,000 shares of GE today. Stanley Druckenmiller, who has shorted GE in the past, went long today.
Bigger Fraud than Enron
I'm not buying GE, but this Marcopolos coordinated story stinks to high heaven.
Posted on 8/15/19 at 6:01 pm to OleWarSkuleAlum
I left my job at GE Aviation last November. Life has been so much less stressful since. Every week was a new all hands regarding some new bs about the company’s finances
Posted on 8/15/19 at 6:13 pm to MrSmith
quote:
left my job at GE Aviation last November
Did you work powerplant?
Posted on 8/15/19 at 7:03 pm to NC_Tigah
quote:Probably the biggest “GFY” ever to a yellow journalist.
GE CEO Larry Culp bought 252,000 shares of GE today.
Posted on 8/15/19 at 9:05 pm to LSURussian
quote:
Probably the biggest “GFY” ever to a yellow journalist.
Eh, about $2mm assuming he didn’t exercise options at a lower price. He has an estimated net worth of 130mm+. And he has a contract that will pay him handsomely if the stock price rises by 50% in the next year, so he would absolutely have a major incentive to prop it up any way he can
This post was edited on 8/15/19 at 9:07 pm
Posted on 8/15/19 at 11:15 pm to OleWarSkuleAlum
quote:
Did you work powerplant?
Nah software engineer
Posted on 8/15/19 at 11:17 pm to hungryone
quote:
but I did hear from a friend of a friend who is in IT that GE is literally 10 years behind schedule in completing a project for a very large LA based oil storage endeavor.
That is true and I wouldn’t be surprised if it’s part of an asset sale before it’s completed
Posted on 8/16/19 at 9:20 am to OleWarSkuleAlum
If you watch the video (all 15 min of it), he is pretty on point with his reasoning and numbers.
Yahoo Video
He states that he self-funded this research using public documents for 7 mths before allowing a hedge fund to view in advance the research before going public. He also handed over that research to law enforcement.
He might end up being wrong but if I worked at GE or had ties to it, I would be very worried.
Yahoo Video
He states that he self-funded this research using public documents for 7 mths before allowing a hedge fund to view in advance the research before going public. He also handed over that research to law enforcement.
He might end up being wrong but if I worked at GE or had ties to it, I would be very worried.
Posted on 8/16/19 at 9:44 am to Helo
quote:
If you watch the video (all 15 min of it), he is pretty on point with his reasoning and numbers.
After watching that video and seeing the guys mannerisms and way he speaks he’s definitely an autist. I’m more convinced than ever this is real.
Posted on 8/16/19 at 9:49 am to OleWarSkuleAlum
Yea, this guy did a 60 minutes interview I think several years ago about Madoff. He is not some slick Wall Street guy. He is a math nerd and he is someone that would dot the I's and cross the T's before coming out with something this.
Posted on 8/16/19 at 10:01 am to bogart
quote:So was Madoff, at first.
He is a math nerd and he is someone that would dot the I's and cross the T's before coming out with something this.
Posted on 8/16/19 at 10:30 am to NC_Tigah
quote:
Indeed.
Harry Markopolos is also being paid by an undisclosed hedge fund.
Want to guess as to the likelihood of that fund shorting GE in advance of Markopolos's report?
Seems filthy.
The stock is very close to it's all time low, not a ton of room for manipulation. This report IMO doesn't come across as just a money grab and Markopolos is very much respected in the fraud industry.
This post was edited on 8/16/19 at 10:33 am
Posted on 8/16/19 at 10:36 am to OleWarSkuleAlum
He has to disclose if he has a position or plans on taking a position. That's why you see talking heads on CNBC all the time say they are long or short or don't plan on taking a position within a certain time frame. If they don't do this they violate FINRA and SEC rules.
He disclosed that the firm he works form has a large short position. It really isn't that hard to understand.
He disclosed that the firm he works form has a large short position. It really isn't that hard to understand.
This post was edited on 8/16/19 at 10:37 am
Posted on 8/16/19 at 10:37 am to OleWarSkuleAlum
Haven’t studied in detail but a quick glance at the BHGE argument has an obvious flaw.
He mentions BHGE is primary beneficiary of VIE and consolidates.... then argues that GE inappropriately does the same and it is double counted. He states only one entity can consolidate.
He is correct only one entity can consolidate - but if such entity is a sub of another pub co - it will show as consolidated in both (pub co GE and sub co BHGE). His lack of understanding of this or purposeful misstatement doesn’t leave me optimistic about the rest of it.
Ofcourse that is at the high level - perhaps the details would clarify.
He mentions BHGE is primary beneficiary of VIE and consolidates.... then argues that GE inappropriately does the same and it is double counted. He states only one entity can consolidate.
He is correct only one entity can consolidate - but if such entity is a sub of another pub co - it will show as consolidated in both (pub co GE and sub co BHGE). His lack of understanding of this or purposeful misstatement doesn’t leave me optimistic about the rest of it.
Ofcourse that is at the high level - perhaps the details would clarify.
Posted on 8/16/19 at 2:40 pm to igoringa
He also admitted he had a financial interest when outing Madoff as he was working for Rampart and it was a competitor... dude was right. (Think he left Rampart when he was investigating Madoff)
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