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WTF GE?

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David in MN:
Remember General Electric the industrial, financial, technology (ah, there we go) powerhouse? What happened to this company? In the past decade it has gone from being a company that relied on legacy industry to a failed mortgage company to a company that now buys up commercial space to remind us that they are the global experts in running efficient companies. Never mind that their commercials look suspiciously like the "we ask the tough questions" Enron commercials from the early 2000s...

And they've opted to cozy up to politics rather than out-compete. Jeff Immelt split his time as CEO with being the chair of the President's Council on Jobs and Competitiveness (whatever that was). But it kept Immelt busy at the White House rather than in his boardroom as GE's stock tumbled to $6.

The board, being self motivated idiots, began buying shares that were under book value (meaning you could sell all of GE's assets and properties and get more than $6 per share) in what a layman might call insider trading. Of course everyone paying attention saw this and bought shares and options and got rich (me included).

Since then they've spun off the financial dead weight, tried to position themselves as a Chinese train company, and now some kind of integrated tech guru group. And the market just lets this slide because it's a legacy brand. Then today they release numbers that their net earnings fell 45% y/y.  :jaw-drop: The only bright spot was their "Power Generation" business at just over $2b. OK. Then they had the guile to predict a better 2017 on the grounds that the overall economy will improve. I guess a strong enough tail wind will move this lead zeppelin.

This is a widely held stock and a traditionally reliable dividend. You probably own it somewhere. But I look at it like a house of cards that minimally needs to be broken up so individual business units can succeed or fail. Of course I could be all wet.

This is not financial advice. I consider myself "fake news".

Pathfinder:

--- Quote from: David in MN on January 20, 2017, 07:46:39 AM ---But I look at it like a house of cards...

--- End quote ---

That right there pretty much describes the entire stock market these days, not to mention fiat cash and, oh, BTW, our entire economy.

Speaking of which, I'm just curious as to what "IEDs" bho is leaving behind him to ensure the economy tanks right and proper, and hedge fund butt-wipes like Soros can (a) make even more money, and (b) complete the destruction of the US economy once and for all!   >:(

bigbear:

--- Quote from: David in MN on January 20, 2017, 07:46:39 AM ---This is a widely held stock and a traditionally reliable dividend. You probably own it somewhere. But I look at it like a house of cards that minimally needs to be broken up so individual business units can succeed or fail.
--- End quote ---

Some version of the 'GE should spin off X, Y, and/or Z' call has been around for years/decades.  It's been a lumbering zombie for quite a while.  The Dow and S&P are both well beyond the 07/08 peaks, yet GE is still down.

Simple comparison chart of GE, Dow, and S&P...
http://finance.yahoo.com/chart/GE#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%3D

Quite the breadth of business.
https://en.wikipedia.org/wiki/List_of_assets_owned_by_General_Electric

Maybe they used this release to do a bunch of write-offs, etc. to reset the books and move forward?  Or maybe they have their head in the sand?   ::)

David in MN:
Alas, new CEO who promises job cuts and new efficiencies. Time for me to buy? Nope. Still looks gangrenous.

mountainmoma:
My solar panels, bought almost 19years ago were made by Astropower, which was doing well, built  new production facilit ( so maybe overextended themselves ? ) somehow survived the initial phase of the early 2000's small bubble popping, but went bankrupt  -- and was bought by GE. I know this because it I owned stock in it. GE bought their assets, paid something to someone, we got nothing, of course. But, I also never saw GE market solar panels. Games and more games.

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