5 catalysts that could save GE - IBD article - post regarding General Electric Co. layoffs

5 catalysts that could save GE - IBD article

Here Are 5 Potential Catalysts For GE's Stock

https://www.investors.com/news/ge-stock-news-here-are-5-potential-catalysts/

• A major board reshuffle in the works is an opportunity to get things right, Davis suggested. New directors with experience in cost-cutting and spinoffs is key, he said. Among Davis's suggestions: Edward Breen, CEO of DowDuPont (DWDP) and the man who successfully led the breakup of Tyco International; Larry Culp, former CEO of Danaher (DHR); Dave Cote, former CEO of Honeywell (HON); and Inge Thulin, chief of 3M (MMM).

• Early spinoff announcements will help the market decide if they want to own the "new GE," Davis said. In his view, GE CEO John Flannery has been slow to take decisive action more than six months into his new role. A new CEO usually has 90 days for a preliminary plan and another 90 to fine-tune the details, he added.

• Doubling the announced $3.7 billion in cost cuts (GE took out $1.7 billion in structural costs in 2017, mostly in the power division, and is targeting $2 billion in 2018) would bring GE's target in line with what an outsider CEO would cut, Davis said. He suggests the Global Research Center should not exist; Predix, GE's industrial internet platform, should be integrated into its businesses; and "layers of management" need to be cut.

• A credible and more granular plan to fix GE's troubled power division would help investors understand what's fixable vs. what's not, Davis said. He struggles to understand "how this stable 20% margin business falls apart almost overnight" even in a hard-hit power market and believes GE was basically "fleeced" in the Alstom deal.

• GE could be the "best industrial stock to play rising rates" because its main end markets — aerospace, power, health care, and oil and gas — are not highly rate sensitive, Davis said. However, GE's significant pension and insurance liabilities are highly rate sensitive, he noted.

It's time for GE to "come clean" on what the prior management did to mislead investors, as well as to provide honest information, a plan of attack, and a time frame for execution, Davis concluded. While Davis maintains a buy rating on GE stock, he has lowered his two-year price target to 27 from 28 on Jan. 24, after GE issued its earnings report.

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I found the statement, "believes GE was basically "fleeced" in the Alstom deal" interesting and spot on. Having seen several of Bolze's acquisitions, it has been clear our "clean teams" and those doing due diligence were not very good. Virtually every one in my time has not panned out and Alstom is a disaster.

At the End of the Day, GE is the Wells Fargo and Equifax of the Power industry. Sell Healthcare back to Immelt at his new company (his revenge) and aviation biz to Buffet. Easy-peasy.....

Davis' proposed cures are worse than the disease.

DAVE COTE TO "FIX" GE? Like he "did" Honeywell? BWAHAHAHAHAHAHAHA! (spits out drink)

Of course he learned his "craft" from Jack Welch himself when he worked at GE long ago.

Let's recommend a complete board clean-out and CEO buyout. Bring in a BOD with people who know how to create and market products. You know, the old-fashioned-way that used to work, instead of financial shell-gamers. But those types of people probably don't exist in corporate America, anymore.

You'd likely find the same BOD members sit on multiple companies all run the same way as GE.

It is quite humorous that Immelt now is going to run another company, this time in health care, of which he is highly suspect to identify with.

Actually, bottom line is GE is way beyond saving. Look for GE Aviation or GE Healthcare as the sole survivor of the GE name

Bottom line, more rifs. GE will have to reduce a lot of heads or sell assests, like a division, or have a miraculous sales increase to get cash. GE in desperate need of cash, and soon. Very likely someone is or will be soon asking Uncle Sam for a save, really low interest loan or bailout. I don't see how laying off a lot of people by itself gives GE the billions they need.

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5 catalysts that could save GE - IBD article

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