Timeline Strategy Consulting

Candidates to Replace GM, Citigroup in the Dow

Apple's products 'faddish'? My definition of 'faddish' would be GM, cranking out endless undesirable combinations of models that require heavy discounts and incentives to sell, all to meet the cost accountant's model of 100% factory capacity utilization.

Remember that Apple pioneered desktop computing and operating systems. It was the logical successor to the Silicon Valley garage ideal in the vein of Hewlett and Packard.

Apple had hard hard times, but unlike GM, revitalized itself by adapting its business model to reflect the changing way that customers consume media. In doing so, it created a second act that rivals any in business. And, this second act also has allowed Apple to return to its first act, which is computing and software for the masses.

And now it has completely revolutionized mobile computing.

Maybe you should ask your grandkids.

Where Will GE's Jeff Immelt Be at 2 PM Today?

I am not a GE shareholder, and would not become one for a simple reason - their balance sheet. Take a look at it. It's impenetrable, with massive assets and liabilities that are out of proportion to their revenue stream.

Who knows the true worth of their assets?

Who knows the true value of their liabilities, or when they are due?

Who can calculate even a basic, and trustworthy, indicator for GE given how convoluted their financials appear? For instance, what's their book value and do you trust it?

GE is a bank with a diversified technology company as its veneer. Too confusing and opaque for me. Why invest in GE when there are many tech companies with much better growth prospects, much cleaner financials, and no need to go to Washington with a tin cup in hand.