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Non-Tech : General Electric (GE) -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (1843)	4/2/2001 11:03:00 PM
From: $Mogul	Respond to of 3256

GE historically trades at 12 - 15 P/E, its still trading at over 30 P/E. Best of luck.

To: Ally who wrote (1843)	4/7/2001 12:09:48 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 3256

<<1. Will Immelt be able to match Welch's charisma and talent? A lot will depend on how the market view Immelt. Welch was almost a legendary figure and a first rate CEO. In 1995, CE stock could be bought at $12 (after adjusting for splits). Welch did everything right and the stock price rose 5 times to $60. A high multiple is more than just earnings growth.. it's credibility in the leader. I see this as a key challenge for the new CEO. Unless the market is impressed with him, the stock will remain in a low PE range.>> Welch was not initially seen as a good leader. Back when he was made pres, the board was actually quite divided over his nomination. It was only after he was ceo for a while did he become "great" ! So maybe the lesson is the new guy deserves a chance too! Victor

To: Ally who wrote (1843)	4/7/2001 8:37:42 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 3256

<<2. Integration of Honeywell... this is no easy task, and would take at least a year (if not more) for the synergies to be realized (if at all). >> Chances are about 65% now that the Honeywell deal will not happen. Welch has very bad advisors- they tell him what he wants to hear. (hey no offense, Arthur!! ) "Hey, this is Jack Welch !!" And this was also a bad idea from day one. The CEO of UT is a lot smarter than Welch, and obviously has a much smaller ego. UT made their bid for HON and then GE stampeded in with an offer that was far too expensive, and in the end monoplistic. And UT walked away- they knew GE's offer was too much to pay for HON. But Jack was not to be deterred. He has his ego to feed. So he bullied the deal through and now it is washed up by the EC's in-depth review of its implications. It does not look good at all. Must reading re GE's attempted acquisition of Honeywell: "GE-HONEYWELL: HOW JACK STUMBLED" BusinessWeek, April 16, p. 122 "When Welch announced the deal last fall and said he would delay his long-anticipated retirement to see it through, analysts assumed that he wanted to go out with one last hurrah. But one long-time Honeywell adviser predicts the deal could instead go down as Welch's Waterloo. 'Although we all deify Jack, this was a very bad move,' he says. " Meanwhile, Honeywell itself is sinking fast, as investors realize this thing is a complete debacle created almost soley by an egotistical Jack Welch. It is now clear why the GE Board was so divided as to Welch's capabilites way back when, when they considered him for Pres of GE. With regard to this whole Honeywell thing, Jack Welch has shown himself to be at times a reckless, egotistical moron. Victor p.s., although I have been saying for months now the same things that are now in this article, I SWEAR I did not write the article !! LOL!!