Author Topic: WTF GE?  (Read 1776 times)

Offline David in MN

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WTF GE?
« on: January 20, 2017, 07:46:39 AM »
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".
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Offline Pathfinder

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Re: WTF GE?
« Reply #1 on: January 20, 2017, 08:11:23 AM »
But I look at it like a house of cards...

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!   >:(
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Offline bigbear

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Re: WTF GE?
« Reply #2 on: January 20, 2017, 09:00:57 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.

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?   ::)
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Offline David in MN

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Re: WTF GE?
« Reply #3 on: September 04, 2017, 05:05:54 PM »
Alas, new CEO who promises job cuts and new efficiencies. Time for me to buy? Nope. Still looks gangrenous.
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Offline mountainmoma

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Re: WTF GE?
« Reply #4 on: September 04, 2017, 06:29:36 PM »
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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Offline Tyler Durden

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Re: WTF GE?
« Reply #5 on: September 07, 2017, 01:58:35 PM »
The majority of Locomotives pulling trains around right now are GE.  Some are good, some are bad, but that's what's out there.  Most of the signal technology on railroads is manufactured by GE as well. They have a near-monopoly on equipment in that industry.

My wife worked at a water technology place back in Minnetonka, MN called Osmonics.  It was a local, homegrown company that was a pioneer in reverse-osmosis water purification.  GE took it over around 2002 I believe; cut and offshored many of the jobs, and it became another sucky place to work. They recently sold that division off to some foreign company.

I hate GE.

Offline David in MN

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Re: WTF GE?
« Reply #6 on: September 07, 2017, 03:07:15 PM »
I don't love or hate any business per se. Any business is a group of people capable of doing good or bad and turning in either direction with good planning and management of resources. I just look at GE as a bloated dinosaur trying to do business primarily with set in stone government contracts (like rail and power) while continually rebranding to the public what it really does.

Instead of marketing as an efficiency company and competing with Microsoft, IBM, SAP, etc. they need to focus on what they're good at.
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Offline Smurf Hunter

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Re: WTF GE?
« Reply #7 on: September 07, 2017, 05:02:31 PM »
All this and Jeff Immelt didn't get to the Uber CEO gig a few weeks back.

https://techcrunch.com/2017/08/27/jeff-immelt-says-hes-not-going-to-be-the-ceo-of-uber/


Offline David in MN

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Re: WTF GE?
« Reply #8 on: October 26, 2017, 11:31:36 AM »
Peter Schiff called GE (as best I recall) "a hedge fund masquerading as a real company". Couldn't agree more.
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Offline Special K

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Re: WTF GE?
« Reply #9 on: October 26, 2017, 07:57:32 PM »
The majority of Locomotives pulling trains around right now are GE.  Some are good, some are bad, but that's what's out there.  Most of the signal technology on railroads is manufactured by GE as well. They have a near-monopoly on equipment in that industry.

Hold on to your throttle handle...

https://www.bloomberg.com/news/articles/2017-10-26/ge-mulls-options-for-locomotive-unit-including-a-sale-wsj-says

Quote
General Electric Co. is studying an exit from its locomotive business, one of the 125-year-old company’s oldest operations, the Wall Street Journal reported.

The Boston-based company is studying options such as bringing in a partner, spinning the division off or selling it, the newspaper reported, citing people familiar with the matter. GE is also considering the divestiture of its health-care information technology business, Reuters reported.

Offline David in MN

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Re: WTF GE?
« Reply #10 on: November 13, 2017, 07:35:23 AM »
And today they cut the dividend by 50%. Not a big surprise but what an embarrassment.

I hope this thread has helped people avoid this train wreck.
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Offline Special K

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Re: WTF GE?
« Reply #11 on: November 13, 2017, 07:39:00 PM »
Annnd the locomotive derailed...

http://trn.trains.com/news/news-wire/2017/11/13-ge-seeks-to-sells-locomotive-building-business

Quote
CHICAGO – General Electric announced plans on Monday to focus on three core industries – aviation, power, and healthcare – leading to the sale of its GE Transportation division and its locomotive product line within two years, the Chicago Tribune reports.

“Today, GE announced that it will divest the Transportation business from its portfolio. The Company is in the early stages of this process and exploring a multitude of possibilities that may include, among several options, creative approaches used to transition GE’s Consumer Finance business into Synchrony Financial or models like the Baker Hughes and GE Oil & Gas merger," spokesman Tim Bader tells Trains News Wire. "This move is in line with GE’s broader efforts to divest $20 billion in assets over the next few years. The Transportation business remains committed to building on its strong culture of innovation, deep domain, world-class technology and digital solutions in a way that best positions the business for growth.”

Offline David in MN

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Re: WTF GE?
« Reply #12 on: November 14, 2017, 05:27:44 AM »
Top it all off with a board reduction and layoffs at the home office.

The whispers are audible: maybe a limited time left in the DJIA. What will de-listing do to the price?

Jan. 20, when I started this thread, GE was ~$30.50. Today it hovers around $19 with half the dividend and talk of leaving the Dow. And I still wouldn't buy.
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