General Electric (GE) managed to "beat" expectations for the first quarter, although expectations were very low and investors were simply relieved that the company did not again come up with new negative surprises. Comforting were the words from Mr. Flannery who has been dealt a more than bad hand, but the company is beginning to see signs of progress and is not just on track to meet the $2 billion cost reduction goal for this year, but instead exceed it.
These green shoots mean that I see reason for optimism as it seems fair to say that some stabilisation is in sight as the leverage situation can be addressed from hereon, before working on simplification of the business and better margins. These developments of relative stability and still very low expectations made me a buyer at these levels.
