discussing GE(General Electric) and its future.
GE, a company founded by the worlds greatest inventor (Thomas Edison) and banker (JP Morgan) in 1892. To think this company was the first to mass produce the first commercial incandescent light bulb and now doesn’t even sell lights is mind-boggling. But don’t let that fool you. This company has huge potential to go to the moon. "How is that?" you ask? Well, they make jet airplane engines and are the largest manufacturer in doing so. So what is a company whose focus has shifted from light bulbs to jet engines doing with "Electric" stamped in their brand name? I couldn’t tell you, what I can tell you is just like AMC and GME this company has seen some seriously low times lately due to a changing eco friendly environment and covid-19. seen here:
https://money.cnn.com/interactive/news/GE-dismantling-interactive/index.html https://finance.yahoo.com/news/general-electric-commits-cutting-debt-043226235.html https://www.reuters.com/world/uk/ge-freeze-uk-pension-plans-2021-06-10/
as you can see in the chart above, GE had an astounding entrance and exit to the start of the 21st century with Jack Welch carrying the company’s weight to a $59 stock price with a 600B dollar market cap in 2000. Then he oversaw 100k people being layed off under him and retired in 2001 collecting a staggering 417 severance payment while doing so. Jack Immelt then took over as CEO for him on Sept. 4th 2001. Slowly leading the company to a slow but steady decline until he retired in 2017 and collected 200 mill for himself. Still no pensions for employees though.
But since 2018 the company has had a new face, Larry Culp. https://www.ge.com/about-us/leadership/profiles/lawrence-culp
He has an impressive background and has done nothing but good things since stepping into the shoes of CEO. He hasn’t done much since stepping in thanks to COVID, but lately has been making some good moves/news for the company as far as debt-reduction goes. https://www.cnbc.com/2021/03/10/general-electric-aercap-aircraft-leasing-merger.html. And although the company is still in a staggering amount of debt and not making much revenue. they’re still the worlds #1 aviation engine manufacturer (producing 65% of all commercial engines) and I think will continue to be so for a while to come. and for the price of this company to have a price of $13 to its name, I think it is extremely undervalued for what it is and whose in charge of it at the moment. And who knows what lies ahead for this company, possibly electric powered airplanes? https://www.ge.com/news/reports/coming-soon-airports-near-fast-hybrid-electric-aircraft-everyone One can only guess, Id also just love to see a company started by two early American business revolutionaries succeed in a time when everything is thriving. I think with proper rebranding they can get some hype behind what they’re doing. Because I don’t think many people know about GE’s involvement in aviation, at least I didn’t till recently. Hope I informed somebody with this, and if I’m being naïve please inform me. Would love to discuss!
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June 11, 2021 at 05:06PM