General Garbage

The two major "generals" have been general losers both this year and this decade.  General Motors (GM) has now solidified itself as a teenager (now trading below $15), while General Electric (GE) looks to be on its way, trading at $28. 

As shown below, GE is down nearly 44% since the start of the decade, while GM is down a whopping 80%.  The last few years definitely haven't been fun for "general" investors.

click to enlarge

Comments

[Kirk Lindstrom:]

Add back dividends and Yahoo! says GE was $42 on Dec 31, 1999
finance.yahoo.com/q/hp...

An analysis that ignores dividends in total returns for a dividend paying stock is "lacking."

Yahoo shows the S&P500 was 1463
finance.yahoo.com/q/hp...=^GSPC&a=11&b=...
and claims it accounts for dividends, but it doesn't.

Using SPY instead, we get the S&P500 is up a fraction (about 5 pts) since Dec 31, 1999 when you include dividends.
finance.yahoo.com/q/hp...
SO GE has under performed, but not as much as shown.

2008 Jun 19 10:08 AM

[confused in...:]

Talk about Wind Energy stocks and GE stock goes down, talk of Nuclear Energy and GE stock goes down, talk about the need for increased transportations and fuel efficient locomotives and GE stock goes down... I just don't get it as I watch GE stock crumble for being in the right place/business at the right time.

2008 Jun 19 11:18 AM

[marketwatcher2:]

The whole market is in turmoil. Lets not blame two companies for mistakes. Seems the only market today is energy and it can't seem to hold a lead in any one sector and it effects all other forms of market gain and our economy. I say hold on. This constant struggle of the market has to end soon. Possibly after election when some needed changes will take place.

2008 Jun 19 11:57 AM

[sharksm:]

What G.E. needs is a new CEO. Immelt has ruined a once great company. Since the day he took the reins of the company, it's gone down the tube. NBC has turned into a left wing network, with the lowest ratings, MSNBC has the lowest rating of ANY cable network and Immelt continues to make promises and fail to deliver. How long is it before shareholders throw out Immelt and the entire board. I have been a long time holder of 6,000 shares of GE and regret the day, I bought the stock.

2008 Jun 19 02:24 PM

[captainccs:]

Brilliant analysis! But, is that a buy, a hold or a sell?

2008 Jun 19 03:35 PM

[Gaucho420:]

This article is worthless.

2008 Jun 19 04:31 PM

[eatit101:]

Amazing that it took 2 individuals to come up with this. Between them they don't possess ONE entire brain.
They need to include their article under the heading "General Garbage".

2008 Jun 19 06:25 PM

[svosavvy:]

Yeah, hey,

What side of the trade are you on? Nice disclosure GE $28 and headed for the teens? Yeah I know everybody hates GE financial right now. This is a huge cap conglomerate who got a little cooked on the whole credit meltdown deal. If memory serves, the company was trading well about 38.50 before the quarters announcement. Trading on great innovation momentum, then bang. Id say this is a great stock getting unfairly punished, its a buy. Oh yeah and some people are broken hearted they want to sell their underperforming appliance division worth 5 billion, that should barely make a wave in a 320 billion company, big deal Ill buy my next toaster from someone else. Oh yeah and a solid dependable dividend, what's not to love at this price.

2008 Jun 20 01:07 AM

[Egg:]

One big difference between the two companies is that GM's debt is rated junk (B) while GE still carries a AAA rating.

2008 Jun 20 03:04 AM

[simplesimon:]

Lots of negative comments about the original article , vis general garbage. Even though I've seen my share price go down, this is still a venerable old company with a triple A rating, and already a billion in contracts in place for wind turbines for Europe. In my humble opinion, there is no reason whatever for GE shares to be lower than $38. This temporary lull is just a reflection of the more pandemic fear mongering among investors worldwide. The right question is why billions in wind energy for Europe? The same reason we all thought the home equity as our personal ATM machine, and gas hogs were permanently the wave of the future....only 'other, poor people drove fuel efficient cars; not boastful, status conscious, brand racist elitist me".....if we insist on faulting anyone, it should be Detroit and everyone else totally asleep at the wheel. In the immortal words of Johhny Cash, "How high's the water, Mama?"


On Jun 19 11:18 AM confused investor wrote:

> Talk about Wind Energy stocks and GE stock goes down, talk of Nuclear
> Energy and GE stock goes down, talk about the need for increased
> transportations and fuel efficient locomotives and GE stock goes
> down... I just don't get it as I watch GE stock crumble for being
> in the right place/business at the right time.

2008 Jun 20 09:55 AM

[larrykat:]

GE will be back... but I agree with the sentiment that this article is nothing but a space-filler. I suppose these two knuckleheads have to turn out something for their compensation.

2008 Jun 20 10:28 AM

[ODO:]

The article is poor, but GE ceo is an unreliable person.
People, what do you think will it hit 34-35 by the july 18?

2008 Jun 20 12:05 PM

[Screwed Pen...:]

When it comes to GE we need Jack back,The joke was when Jack retires sell your stock,well I kept mine and look where I am now.Jeff Immelt has been a complete looser,GE stock has about remained the same or gone down since he got in. I don't read his message in the annual reports anymore,it's the same bunk.

2008 Jun 20 02:22 PM

[windermiked:]

As far as I'm concerned it all rests on the shoulders of the ceo and thats the bottom line. No excuses he has'nt done the job for the shareholders .The economy was'nt bad when he started and the stock went right through the cellar .I'll say no more
Thank you
windermiked

2008 Jun 20 04:22 PM

[windermiked:]

It all falls on the shoulders of the ceo The stock has done nothing but crash since he took over. No excuses after all this time. Its time for a change and thats the bottom line. Can you belive he still gets a bonus while the share holders just get the shaft.
Thank you
windermiked

2008 Jun 20 04:28 PM

[skrummydummy:]

DONT COUNT GE OUT YET! YO'RE TALKIN BOUT THE BLUEST OF ALL THE BLUE CHIPS! GE'S BEEN ROUND FOR A LONG TIME & IT'LL BE HERE LONG AFTUR YOU AND I ARE GONE. AND GE OF COURSE WILL ROCKET WHEN THE OVERALL MARKIT TURNS POSITIVE AGIN. THERE IS ONLY ONE GREAT STOCK IN DIS WHOLE DANG WURLD--AND DATS GE!!!

SKRUMMY

2008 Jun 20 08:17 PM

[svosavvy:]

Yeah,
Jack Welch was the man, But, he never had to endure the credit crisis which is where GE finacial really got suckerpunched in all those crappy store credit cards, and like the above mentioned using your house as an atm machine. Give Immelt a quarter past this upcoming and if he sh*ts the bed in the fall run him out on a rail.

2008 Jun 21 01:00 AM

[Philly Jim:]

U.S. corporations are being run down the drain by filthy rich old men who haven't got a clue how much the world and this new generation of consumers has changed!!! The East (Asia) knows what consumers want and need and can move quickly to deliver, the West (OLD RICH MEN) have no clue and should just go into retirement and let the new generation pump new ideas into this fat old dying cow (GE.) AMEN

2008 Jun 21 12:10 PM

[4Annie:]

Perhaps Jack was a genius to get out at the top just before the proverbial "s..." hit the fan, (not unlike Greenspan). Leaving Imalt (& Bernanke) with the carnage & disasters to deal with. I believe Jeff bought several $million in GE stock recently. I'm hoping he's sharper than folks are crediting him with. Who can say how much more poorly GE would have fared under a lessor CEO. I continue to own GE purchased several years ago, & reinvest the dividends and hope over the next 10 years the returns will warrant my patience.

2008 Jun 21 01:27 PM

[Pete V:]

GE- Everyone in this group has talked about wind turbines, high efficiency generators, GE nuclear. Have we also forgotten GE solar (both thin film and photovotaic). GE water purification systems, Gas turbines, Hydroelectric, High efficiency steel and aluminum mills, GE medical systems, GE defencse systems, GE high tech lighting? I have not seen where GE's finance has done poorly, in fact GE got out of most of the garbage that others seem in be in a long time ago. I am selling stuff to buy into this cutting edge company, who pays a better dividend than the Federal Government!

2008 Jun 24 12:17 PM