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S&P 500 Versus GE Returns on % Basis 7 Years
Thank you Jeff Immelt for running GE into the ground during your tenure, instead of being fired 10 years ago by the gutless GE board for incompetent leadership, or shareholders putting pressure on him to resign, they just dumped the stock as an investment. And now to hang on for as long as possible GE and Jeff Immelt have taken the final step in the gutting of this once great company. Liquidating revenue generating assets for a short term pop in the stock to get shareholders off the company`s back for a couple more years. Furthermore, mark my words Jeff Immelt will not be at the company in three years when the realization hits home with shareholders that GE is worse off as a result of this financial engineering gimmickry. He will have long since benefitted from cashing out his robust stock options and retire with his golden parachute while the stock price is higher, only to leave his predecessors and long-term investors dealing with the unintended consequences of liquidating GE`s assets and resources at fire sale prices.
GE isn`t taking a first quarter ‘restructuring charge’ because they are getting a good deal on these asset sales; and expect more and more of these ‘restructuring charges’ in the future quarters as the years go by as the fallout from this deal peels off on the financials. Sure there is an immediate difference between the book value and goodwill on the GE books of these assets worth versus what they can get for these assets in the marketplace. But what about the future revenue that these same assets generate for the company`s earnings? First there is the ‘restructuring charge’ language but there will be some other euphemistic accounting terminology for future quarterly earning’s statements reflecting deteriorating revenue generation conditions at GE. Make no mistake this is pure and simple a fire sale, one giant money grab by GE, with no vision or respect for the future of GE as a going concern.