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Copied from the Nov. 27, 2017 issue of Barron's mailbag https://www.barrons.com/articles/letters-to-barrons-15115767...

To the Editor:

Every time a purported blue chip like General Electric causes massive stock market losses, it’s helpful to try to identify clues that would have told us to get out ahead of time (“What GE Holders Can Do Now,” Striking Price, Nov. 18). Here are a few: 1) return on capital for the past 10 years averaged just 5% to 6%; 2) no growth in intrinsic value (per Morningstar); 3) multibillion negative tangible book value; and 4) price 200-day moving average went under $29.50 in April 2017. Superinvestor Paul Tudor Jones’ favorite technical sell indicator also signaled danger in 2008 at $28, before GE’s stock plunged to below $6.


Hewitt Heiserman Jr.
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