General Electric is about to release earnings. Are they a tired olde dog with a Bear Case Scenario or should investors pay attention.
GE tools such as lean management and six sigma have been around for so long there’s no juice left. Productivity gains have mostly occurred.
The market typically places a premium on long-term growing cash flow. Recent dispositions may accelerate cyclical earnings and therefore stock volatility. Investors do not buy GE for high beta experiences.
Global footprint provides unique insights into markets and opportunities. However everyone has heard of China and high growth opportunities in under-developed countries.
George Gutowski writes from a caveat emptor perspective.