Despite General Electric shares rising the most in just one day in nearly three years Tuesday, the embattled industrial conglomerate ended the first quarter as the worst performer on the Dow Jones industrial average.
GE stock dropped more than 25 percent from the first quarter, dropping nearly twice as much as Procter & Gamble, the next worst Dow stock.
A day after shares dropped to the lowest level since July 2009, speculation among traders Tuesday sparked a surge higher. Reports said some big investors may be starting to nibble at the downtrodden conglomerate although a company spokesperson told CNBC of which GE did not “have a comment on the stock cost.”
Unsubstantiated speculation of which Warren Buffett was looking to invest in GE was analyzed by RBC Capital Markets, which theorized of which GE’s downtrodden state makes the idea ripe for the oracle of Omaha to invest.
“In many ways, GE’s current situation fits the profile of an ideal Warren Buffett investment,” RBC analyst Deane Dray wrote in a note.
While GE is usually from the midst of a restructuring effort, recently nominating three brand new directors, This kind of year has seen little to boost shareholders’ hopes. GE revealed two ongoing federal investigations from the first two months of 2018: the SEC investigation into GE’s accounting practices in addition to the U.S. Justice Department investigation in connection with subprime mortgages. Poor earnings performance has heaped on further reminders of the challenges GE faces, with the most recent report again falling short of expectations.
Boeing, Intel in addition to Cisco led the Dow, each stock rising more than 10 percent.