Several articles out today with positive outlook for GE. Color me shocked. Is this ship actually righting? Or am I just being naive and too hopeful (which has happened before?)
https://seekingalpha.com/article/4181505-general-electrics-digital-growth-impressive
http://www.nwfdailynews.com/news/20180613/malcolm-berko-general-electric-could-be-righting-ship
Even Siemens is looking to get out of the Steam and Gas Power game. This should tell everyone that there is a very large market pivot towards renewable energy and the pain is only beginning for fossil fuel businesses.
GE continues to sell businesses and not all of the sales are making the headlines. Not many might realize that the Lighting business is already sold in Europe as well as the global Automotive Lighting and is now Tungsram. Appliances was sold to Haier in 2016. GE Transportation Locomotives are being sold to Wabtec. The signaling part of Transportation was sold to Alstom.
Here are a few of the businesses inside of GE Power recently sold or in the process of being sold or closed...
Water was sold to Suez, Industrial Solutions is in final stages of being sold to ABB. Jenbacher and Waukesha are up for sale and final bidders of Cummins Inc. and Kohler Co., as well as a group comprised of investment firms KKR & Co. and B&C Industrieholding GmbH are in the final running. GE Power Conversion has sold the Small and Medium Motors business located in Monterrey Mexico to Wolong Electric Group. GE Power Conversion is in the process as well of closing several Large Motors plants in its rotating machines business and rumors are the remaining are up for sale as well. Power Services has moved many of the employees and relationships now into Fieldcore.
Most of these changes were not publicized much but behind the curtain there have been massive changes inside of GE and planning is underway for even bigger changes than what has been seen so far.
Why the stock is going south?
Nothing GE is doing is going to be positive in the eyes of the analysists on Wall Street. That is the issue. They want a quick fix, crap it took JI 16 years to put GE in the position it is in. They are cash poor, cut the damn dividend for next year and paint the correct picture on power. Which is not significant turn for this division until 2022 or later.
Do you research folks. Power plant project have 5-6 year cycle. There not crap on the horizon for GE Power.
This probably means something is going to be put on sale.