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GE Stock and any other, except for AMD.

Old 10-04-2018, 06:54 PM
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Default GE Stock and any other, except for AMD.

I see that GE is still in the toilet, naming a new CEO and taking a 28 Billion charge.
Does anyone think there is value in GE moving forward. I have a 5 year time horizon.
Old 10-05-2018, 04:35 AM
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Who knows but it probably won't suffer the volatility that AMD suffers from...
Old 10-05-2018, 04:46 AM
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No, there is no value. Buy index mutual funds. www.bogleheads.org
Old 10-05-2018, 05:14 AM
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Good Thred
Old 10-05-2018, 05:28 AM
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OP.....Thank you, appreciate the respect!

Is GE still not a huge, huge company, with tens of thousands of employee's?

What happened?
Old 10-05-2018, 06:37 AM
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Originally Posted by spraynet 1 View Post
What happened?
Manipulators... sorry, couldn't resist
Old 10-05-2018, 07:50 AM
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Originally Posted by spraynet 1 View Post
OP.....Thank you, appreciate the respect!

Is GE still not a huge, huge company, with tens of thousands of employee's?

What happened?
Its hundreds of thousands of employees.
Old 10-05-2018, 07:56 AM
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Originally Posted by rickboat View Post
No, there is no value.....
In many cases, just about the time this becomes conventional wisdom, is the time to buy...
Old 10-05-2018, 08:01 AM
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GE has sold off or plans to sell off:

Appliances
Industrial Solutions
Health Care IT
Gas Engines
Rail
Oilfield Services
Power Conversion
GE Capital
NBC

I'm sure I missed something.

The recently wrote off $23 Billion on it's power division.

They were removed from the DJIA in June.

18 years ago, GE was worth $600 Billion. Now it's barely $100Billion.

There is no sign that a bottom has been reached, and stock speculation is for people that aren't educated in the reality that index mutual funds beat the market more than you can.
Old 10-05-2018, 08:15 AM
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Originally Posted by rickboat View Post
GE has sold off or plans to sell off:

Appliances
Industrial Solutions
Health Care IT
Gas Engines
Rail
Oilfield Services
Power Conversion
GE Capital
NBC

I'm sure I missed something.

The recently wrote off $23 Billion on it's power division.

They were removed from the DJIA in June.

18 years ago, GE was worth $600 Billion. Now it's barely $100Billion.

There is no sign that a bottom has been reached, and stock speculation is for people that aren't educated in the reality that index mutual funds beat the market more than you can.
What makes you think a market value @$600 billion or $100 billion was/is correct?

Market value is nothing more than conventional wisdom on any given day.








Old 10-05-2018, 09:19 AM
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This is the issue with GE. Under Jack Welch things were great across all industrial businesses, so great that GE greatly expanded GE Capital to allow for not only financing of GE products, but to essentially be another large bank. Jack Welch retires and hands the reins over to Jeff Imelt. Just after Jeff was made CEO 9/11 took place and the economy took a hit, GE weathered through it, and then the 2008 financial crisis really hurt GE as GE Capitol was very over exposed.

Jeff thought he'd right the ship by getting back to basics, ditching the banking/GE Capital business as he saw that as too risky, and doubling down on the industrial business. Jeff and GE management sold off Capital and bought many other industrial businesses at their Peak Prices including Baker Hughes (Oil Field Services and equipment) and Alstom (massive European power conglomerate). GE continued to overpay for industrial business at the high of the market and sell off its capitol business at the low of the market.

Today GE completely overextended to buy all of these business that are not profitable, and are trying to figure it out. GE is trying to learn from their mistakes and as such is selling some of their best divisions so they can sell something at the peak vs buy a business at the peak. GE's current plan seams to be focused around their aircraft engine and power divisions.

Last edited by beber; 10-09-2018 at 07:52 AM.
Old 10-05-2018, 10:08 AM
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Originally Posted by rickboat View Post
GE has sold off or plans to sell off:

Appliances
Industrial Solutions
Health Care IT
Gas Engines
Rail
Oilfield Services
Power Conversion
GE Capital
NBC

I'm sure I missed something.

The recently wrote off $23 Billion on it's power division.

They were removed from the DJIA in June.

18 years ago, GE was worth $600 Billion. Now it's barely $100Billion.

There is no sign that a bottom has been reached, and stock speculation is for people that aren't educated in the reality that index mutual funds beat the market more than you can.
Tell that to Warren Buffet, Graham, Peter Lynch etc
Old 10-05-2018, 10:10 AM
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Originally Posted by rickboat View Post
GE has sold off or plans to sell off:

Appliances
Industrial Solutions
Health Care IT
Gas Engines
Rail
Oilfield Services
Power Conversion
GE Capital
NBC

I'm sure I missed something.

The recently wrote off $23 Billion on it's power division.

They were removed from the DJIA in June.

18 years ago, GE was worth $600 Billion. Now it's barely $100Billion.

There is no sign that a bottom has been reached, and stock speculation is for people that aren't educated in the reality that index mutual funds beat the market more than you can.
tell that to Warren Buffet
Old 10-05-2018, 10:21 AM
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To the OP's question: I believe that GE is at or near the bottom. I believe the stock (or remnants therof) will be higher 5 years from now. The new CEO (Larry Culp) will either break it up, or transform it. He did it at Danaher.

They have to go through this part - write down the crazy goodwill booked during their (amazingly losing) acquisition spree in the power space competing with Siemens. Siemens bought most of the good stuff in the power space, GE bought Alsthom which has proven to be an albatross. And don't get me started on Baker Hughes, a GE company - the ultimate dumb acquisition. Some of the hangover from divesting GE capital is also biting them (long term insurance garbage the acquirer wouldn't take).

In my work we are a customer of GE Power. They are an overstaffed, slow to respond, non customer oriented company. But they have great tech. The good news is overstaffing, non customer orientation, etc are easily transformed in a few years.

My bet is Aviation and Power will remained joined at the hip, as there are considerable synergies in the gas turbine space. Medical will be split off and the two businesses will each go forward independently. Culp knows tons about the medical world and I'd bet he can create value here. I also think the dividend will be cut or eliminated. More pain to come in writedowns, dividend cuts, layoffs, reorgs etc. so no rush to buy but at some point soon it is a buy.

Culp had no need or reason to take this job other than he thinks he can turn it. He already made a fortune at Danaher. He has been sitting and watching on the GE board long enough to know what's working and what needs fixing. As of today he also has the most lucrative CEO contract (linked to stock price) of all time. He didn't do this to amuse himself.

Disclosure: I own it and bought in too early. I've decided to hold. If I didn't already own it I'd be legging in right now.

Last edited by JiminAZ; 10-05-2018 at 10:36 AM.
Old 10-05-2018, 07:43 PM
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Originally Posted by JiminAZ View Post
To the OP's question: I believe that GE is at or near the bottom. I believe the stock (or remnants therof) will be higher 5 years from now. The new CEO (Larry Culp) will either break it up, or transform it. He did it at Danaher.

They have to go through this part - write down the crazy goodwill booked during their (amazingly losing) acquisition spree in the power space competing with Siemens. Siemens bought most of the good stuff in the power space, GE bought Alsthom which has proven to be an albatross. And don't get me started on Baker Hughes, a GE company - the ultimate dumb acquisition. Some of the hangover from divesting GE capital is also biting them (long term insurance garbage the acquirer wouldn't take).

In my work we are a customer of GE Power. They are an overstaffed, slow to respond, non customer oriented company. But they have great tech. The good news is overstaffing, non customer orientation, etc are easily transformed in a few years.

My bet is Aviation and Power will remained joined at the hip, as there are considerable synergies in the gas turbine space. Medical will be split off and the two businesses will each go forward independently. Culp knows tons about the medical world and I'd bet he can create value here. I also think the dividend will be cut or eliminated. More pain to come in writedowns, dividend cuts, layoffs, reorgs etc. so no rush to buy but at some point soon it is a buy.

Culp had no need or reason to take this job other than he thinks he can turn it. He already made a fortune at Danaher. He has been sitting and watching on the GE board long enough to know what's working and what needs fixing. As of today he also has the most lucrative CEO contract (linked to stock price) of all time. He didn't do this to amuse himself.

Disclosure: I own it and bought in too early. I've decided to hold. If I didn't already own it I'd be legging in right now.
I have been watching GE for a while and I'm a value investor. I appreciate your knowledge and sharing the past history.
I will get into GE shares now that they have a new CEO. It looks like a good under valued opportunity in the 5 to 7 year time horizon.
Old 10-05-2018, 07:44 PM
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Originally Posted by beber View Post
This is the issue with GE. Under Jack Welch things were great across all industrial businesses, so great that GE greatly expanded GE Capital to allow for not only financing of GE products, but to essentially be another large bank. Jack Welch retires and hands the reins over to Jeff Imelt. Just after Jeff was made CEO 9/11 took place and the economy took a hit, GE weathered through it, and then the 2008 financial crisis really hurt GE as GE Capitol was very over exposed.

Jeff thought he'd right the ship by getting back to basics, ditching the banking/GE Capital business as he saw that as too risky, and doubling down on the industrial business. Jeff and GE management sold off Capital and bought many other industrial businesses at their Peak Prices including Baker Hughes (Oil Field Services and equipment) and Alstom (massive European power conglomerate). GE continued to overpay for industrial business at the high of the market and sell at the low of the market.

Today GE completely overextended to buy all of these business that are not profitable, and are trying to figure it out. GE is trying to learn from their mistakes and as such is selling some of their best divisions so they can sell something at the peak vs buy a business at the peak. GE's current plan seams to be focused around their aircraft engine and power divisions.
Thank you for your insight.
Old 10-06-2018, 05:06 AM
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NVDA looked like it was going to hit 200, so I went to sell half, but the last 2 days have been rough. Still up 10%. Oh well
Old 10-06-2018, 10:01 AM
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Excellent article in today's WSJ about Culp and his work history at Danaher. I think he's the right prescription for GE. Boy he has his work cut out for him though. Huge corporate culture transition required.
Old 10-06-2018, 11:16 AM
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It's in scary times that money is made over the long haul. I'm hoping that this is the true bottom for GE.
Old 10-08-2018, 04:53 PM
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You all know more about GE than me but I jumped in this week, mostly because of Culp's reputation for efficiency.

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