Several media outlets have reported that GE's (NYSE: GE) CEO Jeff Immelt used a webcast to try to reach the company's two million smaller shareholders. The project included Immelt being questioned by Carl Quintanilla of CNBC, and Chrystia Freedland of The Financial Times.
The webcast drew 6,000 questions over the internet, but Immelt could only answer a tiny fraction of those. According to The New York Times, Mr. Immelt had one message: "We ought to be trading at a premium to the S.& P."
GE is missing the boat. Whether it is through webcasts or meetings with large investors, Wall Street does not believe in the conglomerate's strategy. At this point, the growth at GE comes from its infrastructure and financial operations. Divisions like NBC Universal, the company's medical group, and its industrial operations are a drag on the company's overall results.
GE trades near a 52-week low. PR won't solve that problem. The company needs to restructure and dump the dogs.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 1)
3-14-2008 @ 1:19PM
gumby said...
Wall Street love companies that pay little to workers, no benefits... like Wal Mart and overseas companies....mobile home REITs and stuff like that... Wall Street run away from high paid workers like movie stars, newsanchorpeople, weather people, book writers, union workers, etc.... Who can argue with Wall Street? everyone is leaving money at mutual fund managers who are calling all the shots.... Little investors stand no chance of that..
3-14-2008 @ 1:20PM
gumby said...
I like General Electric but I am concerned about the wind power busniess GE owns. So many birds of prey hovering and hunting for vermin rodents in the dark are constantly butchered by the rotating blades of windpower towers.. So many of them are getting killed.. It is a serious concern that GE has to address.. Imelt can not just keep selling them in Turkey or elsewhere like he said... He is a bit arrogrant and I have to slap his hands... Next time, his head may roll..
3-14-2008 @ 1:25PM
gumby said...
I see many smaller windpower towers owned by ranchers that rotate so fast it is like an airplane propeller... very deadly for birds of prey like hawks, falcons, eagles, owls.....Rodents will breed like crazy and invade homes..
3-14-2008 @ 1:25PM
gumby said...
Maybe GE should illuminate the blades of windpower towers so that birds of prey can see them in the night.... or redesign windpower or place them where there is no birds of prey around .. There has to be a limit of places where you can place windpower. Maybe we can exterminate all rodents in areas where the windpower towers are places so that birds of prey see no reason to hang around there... Imelt,, listen to me carefully, OK!
3-14-2008 @ 1:30PM
gumby said...
We can fence around the windpower farms to keep any future rodents from moving in and eaten up by birds of prey that keep on being butchered up by the whirling blades of windpower towers.. General Electric is a great company with great growth potentials if not challenged by simiiliar General Electrics in other countries.. I dont know of any similiar company outside America that can make same stuff like General Electric can.. The only thing I can think of is light bulbs and white goods...
3-14-2008 @ 2:51PM
over65 said...
I've owned GE for 50 years and the past 6.5 years have been the worst from a stock performance standpoint. Immelt, and the scores of VP's he has created, have made millions while shareholders have watched the value of their stock decline. It is time to reward the shareholders and if Jeff can't figure out how then he should get out of the way and let someone who can.
3-14-2008 @ 3:22PM
gumby said...
GE has over 12 billion shares floating around and it is hard for GE to iincrease earnings another dollar a share . You know, old timer, GE have to earn 12 billion dollars more to increase another dollar in earning per share. When Jack Welch took over, GE had much less than one billion shares floating and GE split shares several times and we got that many shares over our heads. GE is playing catch up with shares ... If GE keep on growing for next 50 years, then GE is a good buy now.. at any price today.. It looks like that way to me... Imelt is doing a good job.. Same for ALCOA, it is doing greatly but it had split twice at the beginniing of this decade. But ALCOA is still growing revenues after taking over Reynold Metals and many other ones. Aluminium is still at ridiculously low prices of $1.20 a pound. When aluminium prices goes up like copper did a few years ago, ALCOA is gonna be a great stock to own... I think ALCOA will go up before GE will... Or GE can buy ALCOA... ALCOA is earning close to 3 billion dollars a year already... It is a big company and a real nice addition to GE portfolio if Imelt thinks so... I figure that if GE buys ALCOA, the world producers of alumnium will stop subsidizing their own aluminium operations as they will know that they cant beat ALCOA with GE behing them.
3-14-2008 @ 3:17PM
gumby said...
I just dont understand why everyone hates ALCOA... just wait until aluminium prices go up first and every whore of Wall Street will love ALCOA!!!
3-14-2008 @ 3:17PM
gumby said...
almost all aluminum proudcers outisde ALCOA are running at operating losses just for the sake of keeping jobs... Energy costs are going up and someone will have to bite the bullet and shortages of aluminium will show up anytime... Aluminium prices will shoot thorugh the roof no matter what our demands are...
3-14-2008 @ 3:48PM
over65 said...
Gumby ... GE size is it's problem not the number of shares. It's got two segments that are supporting a host of also rans. Infrastructure and financial services are the bread and butter ... NBCU, medical systems, and industrials are the drag. The company needs to become smaller by getting rid of some of the drag. This is what the street has been asking for and Immelt has been resisting. He needs to quit building an empire and start leading or get out of the way.