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General Electric: A Fixable Company And Situation

Summary Points:

- The stock is up big since General Electric announced its CEO change.

- The struggles of the Power unit and the company's poor financial position have caused downward pressure for the stock but, in my opinion, General Electric is a fixable company.

- I plan to stay long General Electric. What do you plan to do?

Long suffering General Electric ($GE) shareholders have enjoyed a nice ride since the company announced that Mr. Larry Culp, the former CEO of Danaher Corp, would replace Mr. John Flannery as CEO.

While shares are up big in such a short period of time, I still believe that the risk is currently to the upside, of course, over the long-term — that is, most of the bad news is already priced into the stock, in my opinion, so a string of positive developments would likely result in a significantly higher stock price. There are definitely risks that need to be considered/evaluated (will be discussed below), but I believe GE shares at the current level are attractively priced. Moreover, Mr. Culp appears to be the right guy for the position and he without a doubt has a proven track record but, in my opinion, it is somewhat easy today to overlook the fact that whoever is leading this industrial conglomerate has some great businesses to work with.

Read more here.

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