GEWatcher-Same story

During the past week, the GE story continues to follow the same plot:

Immelt and team continue to defend their strategy and work to increase the stock price. So far, the stock is improving, but not by much.

Key GE leaders continue to leave... Hogan left Healtcare to join a GE rival ABB... however this may not be a loss since Hogan was responsible for making major healthcare acquisitions, designed to GO BIG and OFFERING ONE STOP SHOPPING...but none of these acquisitions and ventures have enhanced profitability and may even have added to complexity and lower returns. Healthcare which was one of the Immelt focused growth areas has been disappointing.

Quick replacement...GE again demonstrated that it has a deep bench and so it replaced Hogan with the leader of transportation almost immediately. I am not sure this is a good move since it may weaken Transportation...but we will see.

Continuing partnerships... there seems to be an increase in creating joint ventures and partnerships... in fact the acquisition of the PRIZED WEATHER CHANNEL, which is supposed a BIG WINNER now will have three owners... this adds even more complexity. ( Have never found that partnerships yield the results expected and in most cases it is alike a marriage where the partners are not on the same page).

China and Olympics... it is getting close and it will be interesting to see if the GE BET pays off and what other problems, like Tibet, the pollution, natural disasters, will occur.... It will also be interesting to see if the GE commitment to China will be a profitable bet.


Overall, there are many that think that Immelt's time is limited and that he is on trial. But Immelt and his team strongly assert that they are on the right track and will win...

Bill Rothschild, author of the only complete object assessment of GE's strategies ..THE SECRET TO GE's SUCCESS, now in SIX LANGUAGES... Simplified Chinese, Indonesian, Spanish, Korean, Japanese and English.