Interesting article about GE. A couple of points need examining.
Jeffery Immelt spent his time as a CEO cleaning up the results of GE being on steroids for years under Jack Welch. Clearly, it was not an easy process.
Once a very heavy train gets off the track, the process of getting it back on the track and up to speed is extremely difficult. The heavier the train, the bigger the job. GE is a very heavy train. Flannery will have similar challenges. Hopefully, GE will turn the corner under his direction.
While directors have anted up to buy shares, they could be wrong as well. The real measure of their confidence in their purchase is not the dollar volume of their purchase, but the percent of their wealth. We don't know the percentage. But, I would assume that it is a smaller chunk of their assets.
Finally, GE has moved steadily down since the financial crisis while the market is at all time highs.
Do they still bring good things to life or is a crash cart in the wings?
