Anyone recall some dope arguing with me some time ago that GE with their GE Capital Group was a financial services org and therefore warranted comparisons to JPM or Chase?...here's word from Gary Wendt, who runs GE Cap and lends credence to my earlier view that GE Cap should NOT be viewed as a financial services org...in his own words:
From The Nightly Business Report, an Interview with Gary Wendt of GE Capital.
sixsigmaqualtec.com
The Nightly Business Report Transcript—an Interview with Gary Wendt of GE Capital
Darren Gersh, Nightly Business Report Correspondent:
I think a lot of investors would be surprised to learn that GE Capital supplies about 40 percent of GE's profits.
What is GE Capital? And why is it so important to GE?
Gary Wendt, Chairman & CEO, G.E. Capital:
Well, I think the answer to both of those will help any viewer who doesn't know that GE Capital provides 40 percent of the profits to General Electric. But that it does so through a whole range of activities that really doesn't put
us in that category, called financial services, for instance. Now we operate in these satellites.
Financial services? No, probably not. The yellow trucks that you see going down the road that say Penske on them. Those are really a part of GE—GE Capital.
So we do a lot of things.
Yes, we finance things so we're in financial services.
But we do a lot of other things, as well.
The point is, don't think of us as a financial services company. Our multiple deserves a lot more. |
