Investment Thesis
There have been a few surprises since I wrote a Seeking Alpha article about the General Electric Company (GE) entitled “General Electric: A Long Slog to Recovery” in November. New issues include long-term care liabilities, WMC mortgage risk and SEC investigations. Recovery is still a potential but more business changes are needed.
The past six months have continued to punish the stock:
Source: Yahoo Finance
CEO John Flannery has announced, in numerous forums, that GE is in the process of disposing $20B+ of industrial organizations. Presently included in the disposition process are Industrial Solutions, Value-Based Care, Aviation platforms, Current & Lighting, Distributed Power, and Transportation. The disposition of these businesses is one key step toward the revitalization of GE.
