I am long GE. GE is the centerpiece of my retirement portfolio. I bought-in after the 2008 financial crisis, when GE was in the teens. Back then, GE was a teetering financial behemoth masquerading as an industrial conglomerate. Post-2008 banking regulations threatened to stymie every management decision at GE and strangle the company to death.
GE is remaking itself as the premier digital industrial company. GE is not there, yet. Other industrial giants, such as United Technologies and Honeywell, have performed better than GE. But, these companies were never financial engineering companies. These companies stuck to building stuff. GE relieved to heavily on financing stuff. I am banking on GE to return to making good, honest money by making hard-core industrial stuff (locomotives, turbines, aircraft engines, medical imaging hardware etc.) I do not want financial pizzazz. I want meat & potatoes.
Many GE investors want CEO Jeff Immelt (a fellow Dartmouth alum, older by five years) to be tossed out, or to retire. I am counting on Immelt retiring once GE's post-financial-crisis industrial rebirth yields convincing results, both for the company, and investors. Being an former college football lineman, Immelt may very well be a plodder. In a good way. Into the end-zone.
The latest market chatter is that GE seeks to sell its consumer lighting business. I say, do it! Following is a comment I posted at www.seekingalpha.com, concerning GE talking to I-bankers about selling GE's consumer lighting business: