General Electric (NYSE: GE) not only disappointed Wall Street investors this past Friday with its horrible results, but shocked investors as CEO Jeffrey Immelt gave the "all is alright" signal in mid-March. He should resign as he has had nearly 7 years to grow this once great company.

GE should also bite the bullet and spin off several segments into separately traded companies. I wrote about this extensively last year for AOL, but now the rationale is abundantly clear. This company--a major conglomerate--cannot deliver decent shareholder returns. Immelt took the reigns of GE on September 7,2001 when the stock was at $40. Nearly 7 years later the shares are at $32 and barely holding on. I find it amusing that some "value" investors think GE is interesting at this level. These were the same investors that found GE interesting and a value-play at $38 last year.

The problem with GE is not that it's too big: the problem is it is too complex. The largest industrial company in the world now is Exxon Mobil (NYSE: XOM) with expected revenues this year of $550 billion. This company however is strictly in the energy sector--it's measurable and quantifiable. GE is a mish-mash of businesses, from light bulbs to jet engines to appliances to consumer loans, whereby some segments are doing well and others horribly. How does any analyst assign a proper PE ratio expectation?

One segment, the infrastructure division grew its revenues by an admirable 23% this past March quarter and its profits by 17%. With this kind of growth and visibility into the next 18-24 months on revenues because of contractual commitments, this division alone could command a 25 + PE ratio. GE as a whole is now trading at 14 X 2008 EPS estimates of $2.20-2.30.

The GE Financial segment was woeful and provided the negative surprise. This segment on its own would trade at a PE ratio of between 9-11 times. The NBC-Universal division showed only 3% year-over-year growth, but cash flowed very well. This segment should command a 15-17 PE multiple.

With GE split up into several separate trading entities, a new board of directors would be established for each segment as well as a new CEO and CFO. With new people come new ideas, fresh strategies and basic underlying industry expectations. The new segments would be focused unto its own business and attract a new set of Wall Street analysts. With this comes new and hopefully original research and stock price targets.

The problem with the current GE structure is basic industrial analysts follow the company. An industrial analyst is not an expert on media properties. An industrial analyst is not an expert in financial services or infrastructure companies either.

If GE truly wants to "bring good things to life"--for its ever patient shareholders, the board of directors should turn on the light bulb, terminate an ineffective Jeffrey Immelt and begin to spin off the parts. The spin offs would realize an incredible value that frankly the current GE is not going to see for a long, long time....

Georges Yared writes about game changing growth stocks in Game On Investing