General Electric Company (NYSE: GE) has a long, long way to go before attaining its 2000 high of $60 per share. This company has vastly under performed the markets, its peer group and any other measuring stick investors want to use. GE was a glamorous stock in the 1980's and 1990's under the watchful eye of CEO guru Jack Welch. He may have gotten out just in time!!

General Electric does suffer from the laws of large numbers.With a $400 billion market capitalization and a revenue run-rate this year of $175 billion, growing this beast is like moving the mountain. Actually, moving the mountain might be easier!. CEO Jeffrey Immelt, a lifer at GE, was hand-picked by Jack Welch back in early 2001, and Immelt took the reigns in late 2001, just after 9-11. His mission is formidable and onerous as GE flourished under Welch. Immelt's tenure has been marred by an under-performing company with a similar under-performing stock. Many shareholders and analysts, including yours truly, have done the back-of-the-envelope analysis and can say that GE broken up into various public units is worth more than $50 per share. The stock is currently at $39.15, a good 20-25% below break up value.

I have argued that breaking up GE would be good for the shareholders and its employees. New CEOs and boards of directors for the separate entities would bring new ideas, fresh perspectives and individual company expectations. GE is not only an American company, but a global giant. GE has operations and sell its products world wide.

Continue reading Is GE a turnaround in the making?

Is GE a turnaround in the making? originally appeared on BloggingStocks on Wed, 20 Jun 2007 18:46:00 EST. Please see our terms for use of feeds.