Dallas, Texas 12/19/2013 (FINANCIALSTRENDS) – General Electric Company (NYSE:GE) is one of those storied corporate behemoths which has come to occupy folklore like status in corporate America. It has amassed a market cap of $277 billion and has extended its corporate presence to all parts of the globe through its activities which range from diversified technology products and solutions like aircraft engines and software, financial services, health care and a host of other auxiliary verticals. Over the past year the firm has taken a conscious decision to relook at its sprawling business operations and identify businesses which are not core to its primary business. The board has made a decision to exit out of these identified noncore businesses in the medium term and has initiated such divestures by getting rid of its credit card business earlier last month.
Throwing more light on the behind the scenes thinking at General Electric Company (NYSE:GE) which drives such decisions regarding right sizing the company’s business operations, the company CEO Jeff Immelt , who has been at the helm of affairs since 2001 has been quoted as saying, “ Our recent acquisitions have been in the $1-4 billion range. We just don’t plan to change that. We are always looking at the portfolio, and ways to make it better. We’re not afraid to make portfolio moves”
This explains why General Electric Company (NYSE:GE) has in the recent past decided to exit out of seemingly profitable business like its sale of NBC Universal to Comcast and its credit card and retail financing business earlier this year.
Move Away From Finance Vertical
All this and more came out of the investor presentation that CEO made yesterday to investors. He highlighted that the firm is well on its way to cut its dependence on the fickle natured finance sector and reiterated his vision to regain the market leader position in the manufacturing space in which General Electric Company (NYSE:GE) has traditionally excelled in. He also talked about the growing importance of emerging markets like China for his company and highlighted that industries like locomotive, aircraft engines, power and high tech knowledge solutions were in great demand in China.
Over all the company expects its revenue in the next fiscal to go up in the high single digits range and hopes to recalibrate itself into a manufacturing based player. CEO Immelt was quoted as saying, “We stand here going into 2014 as an immensely strong company. Our expectations is 2014 is slightly better than 2013.”
General Electric Company (NYSE:GE) has been one of those bell weather stocks which have the distinction of being tracked by both the Dow Jones Industrial Index as well as the S&P 500 Index. It has been a steady performer at the stock market and has a reputation of being a good dividend payer. In the past year, the company stock appreciated at a steady 30.5 percent and this steady and deliberate moving forward trend continues to be exhibited even when one considers the shorter time frame. In the past quarter, the stock has posted a 12 percent increase and this further becomes more impressive when we consider the six months time frame in which it has gained by 18 percent. At current price points the stock has surged with in a whisker’s distance to its prior 52 week high price points.