Summary
General Electric has “surprised” markets with its decision to oust John Flannery as CEO.
Given the broader dynamics at work, we are not at all surprised by the move.
We do, however, view the decision as a Hail Mary pass which could lull investors into a false sense of security.
Buying this short-term rally in General Electric is a bull trap for new investors.
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To start the month of October, General Electric (GE) has “surprised” markets with its decision from the board of directors to remove John Flannery as the company’s CEO. But those familiar with the story know that Flannery’s plans to restructure General Electric were unfolding too slowly, and may have been focused on the wrong areas of the company.
We made sure to alert GE investors to these issues in a series of articles, which asked one key question: “Is Flannery Throwing In The Towel?” With these latest moves, it would seem that the board has clearly stated that the answer is a resounding “yes.”
