GEWatcher- There is good news too!

I have expressed my concerns about the Immelt strategy of GO BIG/GO GLOBAL and obviously many investors share these concerns. In the past two days, GE stock has declined over 5% and it may still be falling as I write this blog.

But this decline doesn't fit the successes that the company has reported in the Infrastructure arena. The company has received billions of dollars in orders for power systems from Iraq, Saudi and other parts of the world. It is participating in the new "plug-in hybrid" government project. It has taken some action to reduce the complexity by divesting its appliance business and several international financial service businesses. In short, many parts of the strategy are working.

I continue to have faith in the company and its management and will remain an investor. But I still believe that the company needs to stop buying and selling businesses and focus on executing the strategies it has articulated.

GE has had stock problems before and ultimated demonstrated that it was able to adapt and admit mistakes. I hope this continues and the stock will move to its appropriate levels.

Bill Rothschild, author of the Secret to GE's Success and other key strategic leadership books and software packages.