Fam62c

GE at a Crossroads: Business Model Becoming Obsolete

I can't help but that think that, in the long run, GE would have been better concentrating on it's core technology and infrastructure businesses. Jack Welch went for the easy money when times were good and got deeply into the consumer credit business and GE is paying for that now. I can understand GE having a finance unit so customers can help finance locomotives, jet engines, steam tubines, wind turbines, etc. but I don't think that GE should be in the business of of providing unsecured credit to consumers to buy big-screen TV's, ipods, video game units, etc. Why would GE want to be in a position where they are at risk when Joe Sixpack defaults on his debt? Call me old fashioned but I think most companies are best when they stick with what they are good at. I would like to see GE get back to being GE and lose the entertainment and consumer credit businesses.

GE: Exceptional Total Return Potential at the Current Price

I think that GE is a "behemoth" that is too big to manage effectively. They need to get a CEO with the Altria mentality to spin off NBCU and the consumer finance units. Stick with the tecnology/infrastructu... businesses and financing for these products; this is where the future is as the world grows. GE needs to decide what it wants to be; it can't be everything. I still have some GE but I've moved most of my GE position to Siemens because I believe they are a more focused technology company. I think it's too hard to run a huge company that has too many balls in the air. GE could unlock a lot of value by breaking up the company and letting the seperate units run free. What doesn't fit here: locomotives, wind turbines, industrial steam turbines, jet engines, industrial electric generators, de-salinization plants, movie studios. I hope they demolish the house that Jack built. What did Peter Lynch call it........deWORSificat...