GE Investment Case Study
As a part of the Bull & Bear investment process, often times we will write a detailed investment thesis about trades that we take as a fund. In May, we wrote one about a short position we took in General Electric ($GE) due to what we were finding in our research. Due to the recent report around possible fraudulent accounting practices, which caused the stock to drop, we wanted to share our hypothesis because it directly piggybacks off of the reports. Below is a brief overview of the investment projection, and linked is the full thesis for you to download.
Incorrect valuation of assets
Cash flow problems which have led to the crippling of their balance sheet
Mispricing assets that GE thought were more valuable than they really were
GE Finance not being transparent with their operation