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Analyst reaction to GE's $3.3B purchase of Lufkin (LUFK) is decidedly mixed, with some...

Analyst reaction to GE's $3.3B purchase of Lufkin (LUFK) is decidedly mixed, with some calling the price "stunning" while others believe the premium is worth it since GE is paying for growth prospects; LUFK’s revenue rose 37% in 2012. But GE does not have a history of driving hard bargains; after years of decent but not big returns from its energy spending spree, shareholders might want to temper their optimism.
Comments (4)
  • the difference between GE and Berkshire Hathaway =. Warren Buffet.
    8 Apr 2013, 07:09 PM Reply Like
  • When i first heard the announcement today, i couldn`t believe what i heard and why?
    I think it`s a great idea for the company to aquire LUSK.

     

    In my opinion unless GE commences by spinning off (let`s say),GE Capital, Appliances or Medical Devices so that it begins to define what they`re doing as a company not a Conglomerate .

     

    Immelt states "They`re in the process of transforming GE from a sprawling conglomerate to one more tightly focused on providing services and equipment to industrial customers."
    Will someone please tell me how, when the pieces are worth more than the parts!
    I realize GE's oil and gas related revenue has tripled since 2005, to $15 billion. But, where is the shareholder value to this transaction?
    8 Apr 2013, 09:10 PM Reply Like
  • Warren Buffet in not eternal, and will not have a "long" term legacy, get over it!
    GE gives the impression(rightfully or wrongfully) of a rich boy, who goes on escapade(of spending), those expenses are almost always "emotional" and by definition an error, either GE dumps that idiot( of Harvard) Jeff Immelt or I dump my 12000 shares of GE in favor of German sound mind of Siemens .
    8 Apr 2013, 10:21 PM Reply Like
  • I tend to think your short GE, rather than long 12,000 shares. With 12,000 shares you woud be a small hedge fund. LOL
    9 Apr 2013, 05:43 AM Reply Like
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