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E.Central MN | One article about GE said something to the effect that GE's mgmt was playing with the #'s to show a profit and they lost focus on what the various segments of the company were doing. For example didn't GE mgmt brag about never paying any corporate income taxes? They probably had some very good tax accountants. One miscue was they bought a big european company that built coal fired power plants because it fit well with GE's division that does the same thing. Unfortunately the deal was concluded at a time when power companies were ditching coal in favor of cheap NG. GE also is big in the locomotive business, which looked good when the railroads were busy expanding to haul crude oil and grain elevators were clamoring for unit trains to haul grain for export, but now that's been reduced so locomotives are being mothballed. GE's jet engine business is facing tough competition worldwide. What used to seem like a recession proof company is no longer such a safe bet. Its probably not that different from the Mega corporate farms that are flying high thinking everything they do has the Midas touch until some banker somewhere takes a serious look at that mountain of debt and then everything snowballs to a screeching halt. If GE were truly a bargain at this stock price then a lot of financial savy experts like Buffet would be buying it. | |
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What happened to General Electric
