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What Happened to GE? (2021)

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Re: What Happened to GE? (2021)

#11

Post by jrmg »

When researching washing machines recently, I was surprised to see that probably the most innovative mass-market systems available right now are from GE.

They’ve brought out a heat-pump based low-energy use combined washer/dryer* that supposedly performs great - something that can’t be said for existing combo or low energy systems.

I was surprised to see innovative appliances from GE! I thought they had been reduced to re-badging cheap, mediocre systems produced by other manufacturers. I hope this means the company is on the right track again.

*https://www.geappliances.com/appliance/GE-Profile-ENERGY-STA...

Re: What Happened to GE? (2021)

#12

Post by poulsbohemian »

But somehow nothing ever changes - when this article was written back in 2021, the financial analysts had a buy rating and the price per share was hovering around $10. Today it’s at $129, despite significant competition in all aspects of their business. Bill Gates can say he didn’t see it coming, but all that signals is business as usual - the giants of industry are so woven together they seldom see the train coming

Re: What Happened to GE? (2021)

#13

Post by jdewerd »

rm445 wrote: post #10
tharne wrote: post #5

What happened to GE? Simple. Jack Welch killed the golden goose. During his tenure he shifted focus and money away from long-term R&D in the name of boosting quarterly profits. Product development took a back seat to selling "services", i.e. focus more on selling contracts around maintaining your turbines than you do on developing and manufacturing good turbines in the first place. I won't even get into the heavy bor…

It's interesting, isn't it. Jack Welch must have had very many superb characteristics, to be as revered as he was. Or is it an element that the profits of golden-goose-killing created the mystique?

You've seen how celebrity worship works -- how often does it involve "very many superb characteristics?" Yes, the pumped up numbers helped, but there will always be a market for selling validation to assholes.

Re: What Happened to GE? (2021)

#14

Post by rcyeh »

jrmg wrote: post #11

When researching washing machines recently, I was surprised to see that probably the most innovative mass-market systems available right now are from GE. They’ve brought out a heat-pump based low-energy use combined washer/dryer* that supposedly performs great - something that can’t be said for existing combo or low energy systems. I was surprised to see innovative appliances from GE! I thought they had been reduced…

GE no longer owns or operates the GE Appliances business. Haier bought GE Appliances in 2016.

https://en.wikipedia.org/wiki/GE_Appliances

Re: What Happened to GE? (2021)

#15

Post by permanent »

poulsbohemian wrote: post #12

But somehow nothing ever changes - when this article was written back in 2021, the financial analysts had a buy rating and the price per share was hovering around $10. Today it’s at $129, despite significant competition in all aspects of their business. Bill Gates can say he didn’t see it coming, but all that signals is business as usual - the giants of industry are so woven together they seldom see the train coming

While GE price has gone up in the last 2 years, your statement doesn't take account for a reverse split—a 1-for-8 stock split in 2021.

https://www.forbes.com/advisor/investing/ge-stock-split/#:~:....

Re: What Happened to GE? (2021)

#16

Post by NoboruWataya »

nuclearnice1 wrote: post #4

> For example, Gryta and Mann report that GE would sometimes artificially boost quarterly profits by selling an asset (e.g., a diesel train) to a friendly bank, knowing that it could then buy back the asset at a time of GE’s choosing. So fraud?

I'd be interested in reading the book to get more detail on that. Sale and leasebacks (which often include buyback options) are a fairly common capital management measurement in the asset finance sector.[0] GE could have been committing fraud or this could be sensationalist reporting of a mundane financial management technique.

0: https://en.wikipedia.org/wiki/Leaseback

Re: What Happened to GE? (2021)

#17

Post by QuadmasterXLII »

NoboruWataya wrote: post #16
nuclearnice1 wrote: post #4

> For example, Gryta and Mann report that GE would sometimes artificially boost quarterly profits by selling an asset (e.g., a diesel train) to a friendly bank, knowing that it could then buy back the asset at a time of GE’s choosing. So fraud?

I'd be interested in reading the book to get more detail on that. Sale and leasebacks (which often include buyback options) are a fairly common capital management measurement in the asset finance sector.[0] GE could have been committing fraud or this could be sensationalist reporting of a mundane financial management technique. 0: https://en.wikipedia.org/wiki/Leaseback

So fraud?

Re: What Happened to GE? (2021)

#18

Post by phonon »

poulsbohemian wrote: post #12

But somehow nothing ever changes - when this article was written back in 2021, the financial analysts had a buy rating and the price per share was hovering around $10. Today it’s at $129, despite significant competition in all aspects of their business. Bill Gates can say he didn’t see it coming, but all that signals is business as usual - the giants of industry are so woven together they seldom see the train coming

GE's stock price was between about $70 to $87 in 2021.

Re: What Happened to GE? (2021)

#19

Post by wespiser_2018 »

I'd like to think karma. Nothing with spoil your perception of a company faster than a toxic waste dump of GE manufactured PCBs in your hometown.

I'll never be able to understand the "Genius of Jack Welsh", but I don't suppose I'm really missing that much :)

Re: What Happened to GE? (2021)

#20

Post by thfuran »

permanent wrote: post #15
poulsbohemian wrote: post #12

But somehow nothing ever changes - when this article was written back in 2021, the financial analysts had a buy rating and the price per share was hovering around $10. Today it’s at $129, despite significant competition in all aspects of their business. Bill Gates can say he didn’t see it coming, but all that signals is business as usual - the giants of industry are so woven together they seldom see the train coming

While GE price has gone up in the last 2 years, your statement doesn't take account for a reverse split—a 1-for-8 stock split in 2021. https://www.forbes.com/advisor/investing/ge-stock-split/#:~:... .

How does a reverse split work for holders of fewer shares than the ratio?
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