This is so spot on to what's broken in our company...
https://www.barrons.com/articles/ge-six-lessons-from-a-bad-bullish-call-1525788555
6 replies (most recent on top)
GE is heading for a stock split! It is called a reverse spilt ! GE corporate is sure heading that way!
After the three for one split, a gift to Jack before he retired, the stock prices has absolutely done nothing but tank over the past 20 plus years. Check the stock price history. Over the years the old board and Jeff have milked tests of share holders and employees to be become millionaires. Any current CEO of GE does not deserve to get paid the pay level John is getting. Sorry, but anyone could have done what he has done and make $1 million per year or even less. GE leadership is over compensated for their efforts. Does anyone think Russell Stokes is doing a great job? Yeah, GE did not bonus their executives except aviation last year. I keep hearing the stock has bottomed. BS, what other skeletons will they uncover for qtr 2, and 3? The latest is GE needs to pay Alstom $3.1 billion for alstom exit of nuclear, renewables business. GE does not have $3.1 billion just laying around. So, they have a fire sale going on to sell profitable business units to raise the appropriate amount of cash. GE is one of worse companies to own their stock. More importantly unless you are in very senior leadership roll, working for the company has been one of the worse retirement decisions you could have ever made in your career. Strong statement but spot on. GE corporate leadership is a bunch of crooks and need to be prosecuted.
After the 3 for 1 in 2000, stock rose to near 69 a few months later. PE was 45. Companies don't split stock prices anymore. You can add HON and UTX to the list of companies following in GE footsteps. WS runs the big companies now, executive want to be in that finance/deal making club.
Lesson 1: Watch the Cash Flow. Watch it flow to upper management, board members, and stock buybacks.
Lesson 2 :Watch the Culture. Gimmicks, worthless projects, and catch phrases.
Lesson 3: Avoid Weak Boards. More people to milk the coffers on a grand scale.
Lesson 4: Complexity can be a warning sign. Alstom, GE Capital, NBC, etc. etc. etc.
Lesson 5: Turnarounds take time. Stock price January 2000 : $51.13 after a 3:1 split. Today May 2018 : $14.62 How much more time?
Excellent article.
Was talking with the union guys and they gave a ton of great idea they should be running the company! To be able to tell you what went wrong 5 years later is such a helpful skill!