Look at your 401k plan- I bet most of you hold this cr-p company.
Some basic econ101 - in personal finance, when revenue gets cut (like a family loses a job, or some other severe economic distress), whats the first thing they do?
Put a halt to expenses. Things like netflix bill, or cell phone bill - you take a hard look at your finances and decide what you absolutely must have (electric) and what you dont need to have (amazon prime).
Then, if conditions get more dire, you start selling assets.
That 2nd car? Sell it!
Motorcycle? Sell it!
Normal natural response to severe crisis.
Why does this matter?
Look what Culp is doing to GE.
He's cutting expenses like crazy - pensions are a no no - you cut pensions because you are desperate. Hes cutting staff and offshoring.
Then, he's selling every business thats not nailed down.
These are not things you do if you are in great economic condition.
These are WARNING SIGNS that things are REALLY BAD.
Another way to look at it - you have a relative who hasnt held a job in the past 20 years.
He comes knocking on your door asking to borrow a few grand.
Is he a worthy investment? Aka - do you think you will get your money back?
Probably not.
GE stock has done NOTHING relative to its peers over the past decade.
The stock is in the toilet, and Culp is behaving like the company is a dumpster fire, yet you keep giving GE your money?
The company is very much like the relative who comes askin for that couple grand....
When you buy or hold GE stock you are REWARDING CULP AND THE BOARD for their decisions against your personal best interests!
Bad business decisions have caught up with the company and now you - the employee- are going to pay dearly....either thru cut pensions or maybe your job will get outsourced to india, in either way - the company is not going to do you any favors.
So why do you buy their stock?
Why do you hold their stock?
Why are you rewarding this company at all?
Why not put your hard earned retirement money into something better?